BEIJING: Global energy demand is set for a sustained increase on the back of developing nations' growth, despite economic problems that have temporarily dented demand in the West, the head of top producer Saudi Aramco said yesterday.

Abdallah Jum'ah, outgoing chief executive officer of the state-owned giant, also called on other national oil firms to work together more closely, on everything from joint ventures to research.

"Global energy demand is set for a sustained increase, notwithstanding the current dip in consumption and the widespread uncertainty we see in the global economy," he told a meeting of state-owned firms.

"Demand growth in developed nations will moderate, flatten or even decline in some major markets...however, energy demand in developing countries is rising rapidly and will more than offset declining demand growth in advanced economies," he added.

Jum'ah also highlighted the growing strength of national oil companies, who control a large portion of the world's crude reserves and have seen their power and coffers bolstered by the high oil prices of recent years.

"(A) historic shift is currently taking place in the world of energy...national oil companies collectively occupy the prime position in that new landscape," he said.

According to Nansen Saleri, who headed reserve management at Saudi Aramco from 1998-2007, around 90 per cent of recoverable reserves globally are in the hands of state-owned oil companies.

Jum'ah highlighted the role of these firms and called for complementary state-owned energy firms to consider joint ventures and even taking equity stakes, while adding that he would continue to look for other partners including multinationals.