Remarks as Prepared for Secretary Bodman
Good morning ladies and gentlemen. I'm very pleased to be here with you today.
Congratulations to our hosts on what appears to be the great success of this 12th yearly Turkmenistan International Oil and Gas Exhibition. I understand that this year, for the 1st time ever, TIOGE is over-subscribed. This shouldn't surprise anyone. World demand for energy will increase by in excess of 50 percent over the next 25 years, requiring all of us to find significant new supplies and suppliers of energy. An astounding $22 trillion of new investment will be needed between now and 2030 to meet this expected demand.
Given the enormous potential of Turkmenistan's energy resources… and the openness that President Berdymuhammedov and his administration are showing toward the rest of the world, it is only natural that people would come here. Speaking in New York to a group of industry representatives, the President of Turkmenistan noted that his country is interested in long-term relationships. So is the United States. I hope we can expand and enrich our relationship and extend cooperation to new areas.
Early in his term, I wrote to Turkmenistan's President and extended the hand of my Department and invited him to send a delegation of senior energy representatives to the United States. I'm delighted he accepted and I am even more pleased that Mr. Myradov and a number of his senior technical experts visited our Department and went to the center of the U.S. oil and gas business in Houston, Texas to see our industry at work. Building on that visit, we are currently working on developing new science and education exchanges between our 2 countries.
This is a critical time in the history of this country - one that provides the government new and dramatic opportunities to enhance the lives of its citizens. Clearly the vast natural resources in this country of oil, gas and agriculture will play a critical role in providing the revenue to grow the economy.
Increasing energy security is essential for every country around the world and each nation must pursue those policies appropriate to its circumstances. Here, in my view, energy security means having options - in other words, a diversified set of partners and new infrastructure. However, in order to fully realize the true hydrocarbon reserve and production potential here in Turkmenistan, 1st you really have to define and let it be known the extent of the reserves here.
It is clear that there is recognition of and respect for the value that foreign investment and private companies can bring to this economy through the successful exploration and production of Turkmenistan's oil and gas reserves. As new and increasingly deep deposits of oil and natural gas are discovered, Turkmenistan should seek out partners who have demonstrated international experience, diverse technical expertise, experienced employees, and a proven track record of successful plan development. I can not emphasize enough the importance of choosing the right partners. As you well know, energy exploration and production plans have a long lifespan and you want to have, as your partners, people and companies that you trust to do right by your country and its citizens.
In order for these partners to invest their capital and their expertise, they will need a transparent, stable and market-oriented legal, fiscal and regulatory framework. The President of Turkmenistan underlined the importance of these issues in New York; in fact, he said he would welcome review on Turkmenistan's laws and government policies from potential investors. And I hope the companies here and others accept this invitation.
I also want to talk about getting hydrocarbons to market. Turkmenistan certainly has significant reserves; in fact, it may have one of the biggest natural gas reserves in the world - and it has significant oil reserves. However, there is much concern about the lack of export capacity for oil and gas. Companies developing and producing these reserves will need certainty that commercial pipeline export options will be developed. They are putting their shareholders' financial resources at stake. Pipelines naturally follow investment; they cannot come first. It is clear that Turkmenistan will need new export options. And it is welcome news that the President of Turkmenistan has said that all possibilities will be considered.
There is an additional issue I want to single out for special attention.
In his New York speech, Turkmenistan's President said that investors don't always seem to care enough about the natural environment and that, in the process of investor selection, Turkmenistan will give preference to world-class companies whose policies address environmental protection issues.
The U.S. government strongly supports this position. Each government has a duty to protect the environment; and private sector investors share in this responsibility. There are a large number of oil and gas companies, not just American companies that have an impressive international record; their investments in environmental technologies and corporate environmental management policies make them more competitive in this market. Good corporate behavior and concern for the bottom line do go hand-in-hand.
Let me end by wishing the Turkmenistan's government and its people great success as they develop their oil and gas resources. The wise use of Turkmenistan's natural wealth will benefit the nation today and will benefit future generations in years to come. It will provide the capital necessary for major investment in education, in health care and in the arts and culture. It will raise living requirements and help to bring about the changes that make a nation truly strong and great. Opportunities are opening up that could not have been imagined even a year ago.
The U.S. and its people offer our friendship and cooperation to the people and government of Turkmenistan. We want to be one of your long-term partners. And I fully expect that we will be.
Thank you.
