Central Malaita Student Association Blog Site: OIL PRICE WORRIES PACIFIC MINISTERS

Significant potential damage to vulnerable Pacific economies from world oil prices has prompted Pacific Energy Ministers to endorse a new approach to energy use and consumption.
Energy ministers, representatives and officials from 17 Pacific countries concluded four days of discussions in the Cook Islands this week, with a Ministerial Energy Communiqué declaring a joint commitment to overcome serious energy security challenges.
Director of the Pacific Islands Applied Geoscience Commission (SOPAC) Cristelle Pratt, said Pacific Island countries are deeply concerned about their extreme vulnerability to even moderate increases in oil prices.
"If oil rises by just $10 a barrel, some countries in the Pacific face a loss of up to 14 per cent of gross national income. This will have a major impact on the social welfare of local communities and this concern has generated a commitment to urgent action," Ms Pratt said.
Ministers endorsed a regional fuel procurement strategy as a matter of urgency, after reviewing regional and national energy initiatives and policies, and listening to technical reports on bulk petroleum purchasing, energy efficiency and renewable energy sources.
Minister from the Federated States of Micronesia, Akillino Susaia, said that because of high costs and big risks for oil companies operating in smaller countries, there is a need to examine bulk petroleum purchasing to increase bargaining power and help provide security, affordability and stability of energy supplies.
The Communiqué highlighted a greater need for comprehensive donor technical assistance and for biofuel and petroleum strategies to be integrated. Regional institutions such as the University of the South Pacific will be invited to increase technical capacity support for emerging renewable energy initiatives such as wind, solar, hydropower and biofuels.
"Energy is also a key driver of economic growth that has a significant impact on education, environment and health in the Pacific, so energy must be integrated and prioritised in national development plans for economic development," Ms Pratt said.
Other commitments included a need for sustainable energy policies and action plans to ensure initiatives progress in line with national expectations, and that power utilities and distribution facilities improve efficiency and governance of pricing and services.
"Having countries from all over the Pacific endorse a whole of government approach to energy as a development imperative is a great outcome. We are now all committed to sharing regional experiences and expertise in renewable sources, and energy efficiency and conservation," Ms Pratt said.
Energy Ministers will urge Pacific Forum Leaders to incorporate energy issues into the economic planning and reform agenda of Forum Economic Ministers from 2008.
Participants were Australia, Cook Islands, Micronesia, Fiji, Kiribati, Niue, Tonga, PNG, FSM, Nauru, NZ, Samoa, Solomon Islands, Tokelau, Tuvalu, Vanuatu and the Marshall Islands.

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