By IRNA,
London : Prime Minister Gordon Brown revealed Wednesday that Britain is placing a global strategy to address the impact of higher oil prices at the top of the economic agenda for the forthcoming G8 summit in Japan.
“The global economy is facing the third great oil shock of recent decades,” Brown said. “As every country faces increased costs, it is now understood that a global shock on this scale requires global solutions,” he said.
His call came as he and Britain’s Chancellor of the Exchequer were meeting oil industry leaders amid controversy over soaring fuel prices following lorry drivers staged protests against rising costs and MPs calling for a rethink increases in both petrol and road tax.
In an article for the Guardian newspaper, the British premier argued that the cause of rising prices was clear – “growing demand and too little supply to meet it both now and – perhaps of even greater significance – in the future.”
“It is the market’s belief that ever-growing demand will continue to outstrip supply that has pushed up the oil price. And we are becoming increasingly aware of the technical, financial and political barriers to the production of more oil,” he said.
Brown, who is under attack over his own performance after being prime minister for less than a year, said that every country must find ways of being more efficient and diversifying supply.
Reducing energy costs, increasing energy security and tackling climate change, he said all now point in the same direction towards decreasing dependency on oil.
But the prime minister suggested that as Britain manage a transition to a low-carbon economy, there should be an enhanced dialogue between producers and consumers about the advance of nuclear, coal and renewables as well as about future oil reserves.
“Just as we are examining how we can maximize the recovery of oil from the North Sea oilfields, so all oil producers should re-examine whether the barriers that exist to strategic investments should be broken down,” he said.
In advance of the G8 summit, Brown said he would be proposing further work internationally to achieve a better dialogue on supply possibilities and trends in demand.
Over the coming weeks and as this new economic challenge moves to being the first item on every country’s agenda, “getting the world to act together will be the top priority at the EU and G8 summits and beyond,” he said.