Houston 1998

Key Points

The world is set for continuing and necessary economic growth, and holds an abundance of accessible energy resources that are more than sufficient to meet this growth. A vibrant array of energy technologies are in development that, properly applied, will foster economic development, mitigate environmental impacts, and move in the direction of energy sustainability. The liberalization of energy markets, coupled with the right institutional and regulatory framework, is attracting substantial private investment to meet energy needs but the allocation of these funds now and the adequacy of their future flow to the energy sector give grounds for concern.

Nevertheless. . .

• Current volatility in world currency and equities markets, plus political instability, is having a chilling effect on energy investment in countries where the need is significant. Energy industries need to take a long view and work closely with governments under duress to avoid a downward spiral.
• The problem of world energy poverty persists. Today, as was the case at the last Congress three years ago, one-third of the world's population do not have access to commercial forms of energy, while 20 percent of the world's population consumes 80 percent of the world's energy production. Too little progress has been made in addressing those needs. The problems in rural areas are particularly acute and new partnership and economic models are needed to address the problem.
• The possibility of climate change induced by human activity and the ways in which energy production and use can cause severe local environmental degradation and ill health continue to pose enormous challenges for the world's energy sector. As regards climate change, precautionary measures are essential and both developing and developed countries need to shoulder appropriate responsibilities.