ID :
122262
Sat, 05/15/2010 - 14:14
Auther :
Shortlink :
http://m.oananews.org//node/122262
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Iran wants oil-gas price parity
Tehran, May 15, IRNA – Iran’s OPEC governor Mohammad-Ali Khatibi Tabatabaie said here Friday that the Gas Exporting Countries Forum (GECF) seeks indexing gas to oil as gas prices continue slumping on global markets.
Talking to IRNA, Khatibi said increase in gas supply to the market, partly due to expansion of new technologies for gas extraction from deep see waters, has encouraged lowering of the prices.
He said the GECF would initially favor indexing gas to oil and would draw up strategies for the purpose in its secretariat and expert committees.
The push by the GECF comes as natural gas, which has typically been sold under term contracts, has failed to realize the kind of price rebound registered over the past few months in oil markets.
Producers say higher prices are key to sustaining the kind of investment necessary to continue exploration and production efforts.
The GECF, whose 11 member states represent some 70 percent of the world's natural gas reserves, had come together in Algerian coastal city of Oran to address ways of boosting declining prices.
Some of the members, who range from Qatar to Russia, had pushed for an organization that could influence prices by agreeing on output quotas similar to those of the Organization of the Petroleum Exporting Countries, the oil bloc whose 12-member states account for roughly 35 percent of the world's crude exports.
Gas prices have fallen by nearly 50 percent over the past two years, mainly because of decreased demand and surging American production
Current prices, at about $4 per million British thermal Unit (BTU), are about 20 times lower than oil./end
Talking to IRNA, Khatibi said increase in gas supply to the market, partly due to expansion of new technologies for gas extraction from deep see waters, has encouraged lowering of the prices.
He said the GECF would initially favor indexing gas to oil and would draw up strategies for the purpose in its secretariat and expert committees.
The push by the GECF comes as natural gas, which has typically been sold under term contracts, has failed to realize the kind of price rebound registered over the past few months in oil markets.
Producers say higher prices are key to sustaining the kind of investment necessary to continue exploration and production efforts.
The GECF, whose 11 member states represent some 70 percent of the world's natural gas reserves, had come together in Algerian coastal city of Oran to address ways of boosting declining prices.
Some of the members, who range from Qatar to Russia, had pushed for an organization that could influence prices by agreeing on output quotas similar to those of the Organization of the Petroleum Exporting Countries, the oil bloc whose 12-member states account for roughly 35 percent of the world's crude exports.
Gas prices have fallen by nearly 50 percent over the past two years, mainly because of decreased demand and surging American production
Current prices, at about $4 per million British thermal Unit (BTU), are about 20 times lower than oil./end
