Malaysian Prime Minister Najib Razak said that global oil prices are expected to rise as the global economy recovers, though not at the dramatic pace of 2007.
"The development of higher cost reserves to satisfy rising demand remains inevitable even though the relevant demand will emerge later and perhaps more gradual than previously assumed," he said in his keynote address at the 14th Asia Oil and Gas Conference here.
Najib added the medium term outlook had weakened, besides the immediate downward pressure from the global business cycle.
"Global growth is not expected to recover any time soon due to the rapid pace achieved in years past as the financial crisis will have lasting effects on credit and capital flows. These trends and their consequences on the energy industry should be familiar to most of us," he said.
Najib discussed global primary energy consumption is expected to grow by 1.6 per cent per annum, leading to a 45 per cent increase in energy consumption between now and 2030.
In line with the expected shift of economic power to the East, the focus of global demand will swing to developing countries especially China, he added.
