28 May 2008
The UK must work with oil suppliers such as OPEC and diversify its own energy sources to deal with rising oil prices, the PM has said.
Writing in the Guardian newspaper today, Gordon Brown called the current price rises "the third great oil shock in recent decades". He said he was aware of the impact the price hikes were having on families in energy bills and filling up at the petrol station.
The PM said:
"The global economy is currently facing the third great oil shock of recent decades. The oil price, just $10 a barrel a decade ago, has reached $135 in recent days, pushing up the price of petrol and domestic heating as well as contributing to higher food prices.
"…every country must find ways of being more efficient and diversifying supply. And as continuing high oil prices present us all with an immense challenge, the way we confront these issues will define our era."
Mr Brown highlighted two ways the UK should meet the energy challenge: first, to encourage an "enhanced dialogue between consumers and producers, such as OPEC, in order to maximise supply streams; secondly, to "accelerate" development of alternative, renewable energy sources and reduce oil dependency.
The UK is pressing to make oil and energy prices one of the key issues to be discussed at the G8 summit in Japan in July, he added.
The PM and the Chancellor, Alistair Darling, later met senior representatives of major UK energy companies in Aberdeen to discuss ways of dealing with the price surge. Following the meeting he told reporters it was imperative to strike a "better balance" between supply and demand.
The discussions came as Business Secretary John Hutton announced measures aimed at improving the UK oil supply via two new field developments in the North Sea and changes to the North Sea licensing system.
Image copyright: Reuters
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