International oil markets
Despite moves to reduce carbon emissions, oil continues to play a central role in the UK and wider world economies and is expected to continue to do so in coming decades. Demand has been forecast to grow from the current 89 million barrels a day to about 105 million barrels by 2030, driven by growth in non-OECD economies.
Ensuring such demand can be met requires a properly functioning, transparent global oil market. This is in the interest of both consumers and producers, serving to remove the uncertainty and price volatility that is so harmful to consumer confidence and investment in new production capacity.
We are therefore working at an international level to promote a more transparent global oil market, in particular through the International Energy Forum (IEF). The IEF has recently been reinvigorated with a new charter and is working closely with its members and organisations such as OPEC and the IEA to analyse the oil market and consider ways it can be developed. The G20 is taking a close interest in these developments too. DECC is actively supporting this work.