He made the remark during the webinar on post-pandemic energy issues organized by Azerbaijan-based Center of Analysis of International Relations, AzVision.az reports citing Trend.
The minister pointed out that during the pandemic, the oil market faced several serious problems.
The most important problems was the overall economic recession, lower oil demand and sharp drop in oil prices and missing the chance to come to an agreement in March, said Shahbazov, adding that one month was enough to understand that the international oil market needs adjustment mechanism in place.
“Everyone understood the importance of OPEC+ in this situation. On April 12 OPEC+ reached an agreement and again put in place this adjustment mechanism, it started to work and the results are evident. We all recognize how important the role of OPEC+ in the future,” said the energy minister.
However, Shahbazov said that the forecast indicators for 2020 are not encouraging. “There can be lack of investments in the oil industry in the future. In the long run, if the prices remain under $50 per barrel, it will also affect the international oil market.”
“This energy source is much more environmentally friendly. We have large gas reserves throughout the world and transportation issues have been resolved. The gas price is not as high as before. Therefore, this is one of the important components of the energy mix in the future,” said the minister.
Nevertheless, he pointed out that global gas consumption is forecast to decrease by 4 percent in 2020.