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US' Bodman continues warning on OPEC-like gas cartel
AFP
US Energy Secretary Samuel BodmanBy Cathy Landry
Platts
Washington
Petroleumworld.com 04 11 07
US Energy Secretary Samuel Bodman Tuesday warned natural gas suppliers
that moves to form an OPEC-like gas cartel will hurt consumers and will
ultimately harm the producers themselves."Anticompetitive activity leads to problems for consumers, but also for
producers," Bodman told reporters following a speech to a US Federal Trade
Commission energy conference.He was responding to questions about moves afoot by leading gas producers
to establish a gas association, similar to OPEC.Gas producers that control two thirds of the world's gas reserves ended a
one-day meeting in Doha, Qatar Monday with a vague pledge to enhance
cooperation. Although they made no formal mention of creating an OPEC-type
cartel, several ministers said the forum would eventually develop into a "gas
OPEC."The forum ended with a mild communique designed to put to rest, for now,
speculation that gas powers, including Russia, Iran, Qatar and Algeria, were
banding together to form a cartel. They said they would meet again next year
to address the issue."Attempts by market suppliers to attempt to interfere with the market are
unwarranted and inefficient," Bodman said.He noted that such cartels tend to cause increases in prices, which will
harm producers. "There may be some short-term benefits" to suppliers of higher
prices, but in the end, producers will be hurt by damaging relationships with
their consumers, he said. "We need markets that are fair, open and free of
collusion. These are the conditions needed to fuel investment."- cathy_landry@platts.com
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Platts 10 04 07
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