Bahrain oil minister warns over Gulf tension

Mar 11, 2007, 18:15 GMT

Manama - Bahrain's oil minister Sunday warned over political tension in the region, and called for continued global support from the world community to help ensure continued stability.

Speaking at the opening of the 15th Society of Petroleum Engineers Middle East Oil & Gas Show and Conference (MEOS 2007), Minister of Oil & Gas Affairs and Chairman of the National Oil & Gas Authority (NOGA) Abdulhussain bin Ali Mirza said instability could affect the ability of the region to meet increasing oil demand.

'One cannot emphasis enough the need for political and social stability in this important oil and gas region,' he said.

'It will necessarily require cooperation of the entire global family members to keep this sensitive part of the world away from any tensions, conflicts or encounters that may disrupt the regional balances.'

Mirza's comments come as the diplomatic tension between Washington and Tehran continue over Iran's nuclear programme.

US Navy officials from the Bahrain-based 5th Fleet Command, who have recently issued repeated denials of plans to attack Iran, do not hide their concerns about the possibility of Tehran's use of sea mines to disrupt maritime traffic in the Gulf.

Mirza also said that he expected demand for oil to increase. 'The current world oil demand is about 84 million barrels a day,' he said.

'Some time in the near in the not too distant future, when for instance, India and China attain the per capita oil consumption level of France, the additional oil required by only these two countries would be 72 million barrels per day.'

The Energy Information Administration (EIA) estimated, assuming lower growth scenario, that world oil demand by 2020 would exceed 170 million barrels per day.

Mirza added that he expected oil prices to remain at current levels in a narrow band as the consumption remains strong in the developed world and developing economies especially China and India.