Investment in new technology to boost oil production in the Middle East could suffer as a result of falling oil prices. That was the prediction made by the Qatari Minister of State for Energy and Industry H E Dr Mohamed Bin Saleh Al Sada this week.

His warnings followed those of the UAE oil minister Mohammed al-Hamli last week who warned oil prices of around US$40 a barrel are too low to attract investment into new supplies. The industry is under increasing pressure to dig deeper for new supplies and needs cutting edge technology to develop methods of doing this. Health and safety are also strong concerns for oil companies and investment is required into equipment to ensure exploration methods are as safe as possible.

There is a serious danger that efforts to develop these technologies could be put in jeopardy by the volatility of oil prices. There may currently be a slowdown in demand. But companies must not let,what could be a temporary blip, hamper their long term investments in crucial technology.