In a press conference on its annual World Energy Outlook report last Friday, deputy executive director William Ramsay said he did not believe the world was headed for a supply crunch, although he did not rule out the possibility.

He said oil production does not cost 'more than US$15 per barrel, closer to US$10', and current high prices could prompt a supply-side response like the reopening of old oil wells.

Despite growing intellectual awareness of the problem of climate change, the world's unsustainable energy consumption worsened in the last year and it was probably unrealistic to expect any real difference in the short term, he said.

While Singapore's energy consumption is insignificant compared with that of global guzzlers like China, it can make a difference in other ways, he said.

It can implement good energy consumption policies at home and demonstrate how these can also work for its neighbours, said Mr Ramsay.

It can also set up institutes to research climate change or develop alternative climate-friendly renewable energy.

Singapore 'has led in many other areas, why not this?', he asked.

CHUA HIAN HOU