Let me begin by recognizing President Aliyev’s vision, partnership, and regional leadership on energy security, and thank him for convening and chairing this meeting.  It is my pleasure to be here representing the United States and I bring to all of you the greetings and best wishes of President George W. Bush.

The world faces a series of energy challenges.  Concerns about access to energy, about its impact on the global climate, and about its availability and affordability, have captured the world’s attention in urgent ways. 

Collectively these concerns come under the rubric of energy security and have a direct impact on our economic and national security.

These issues are important to us all.  So I want to commend the nations represented here for the success you have achieved addressing these concerns. 

In my judgment, this energy summit is the latest in a series of beneficial outcomes that began with the signing of 1994’s “Contract of the Century,” that began movement of Azerbaijani oil resources to the global market.

That contract was the first step toward the development, processing and deployment of this region’s vast energy resources in successful ways to the benefit of producers and consumers alike.  And I hope these successes will continue despite the recent economic downturn.

Over the last few years emerging economies have experienced economic growth outpacing that of industrialized nations.  As a direct result, we’ve seen demand outstripping supply. 

Many of these same nations are now experiencing an economic slowdown.  Still, they all must have energy to power their economic engines, fuel vehicle fleets and heat and light homes. These common needs require, in my judgment, continued cooperation to improve mutual energy security, something the U.S. remains committed to doing.

It is my firm belief that this effort and this region of the world will be a priority for the next administration.

Oil production from the Caspian states is already a significant source of supply to world markets outside of OPEC.  We expect it to continue to play a vital role as oil production continues to increase over the next decade.

For over 15 years, since Azerbaijan signed the contract of the century with international investors, the United State has been working in partnership with Azerbaijan, Georgia and Turkey to ensure Caspian oil and gas can reach European and global markets through commercially viable and secure export routes.

We are now building on the success of the Baku-Tbilisi-Ceyhan and South Caucasus gas pipelines to develop a new generation of export routes known as the Southern Corridor.  The tremendous natural gas resources here in Azerbaijan and the region will benefit consumers globally as the century progresses.  Your cooperation with each other and with the commercial sector is responsible for this.

The U.S. is committed to working with Azerbaijan, Turkmenistan, Georgia, Turkey, and our European partners to realize the Turkey-Greece-Italy and Nabucco pipelines that will form the foundation of the Southern Corridor.  It remains crucial that gas producers and consumers put in place the framework agreements required to ensure these projects will be commercially viable.

The Russia-Georgia conflict underscored how important it is for Europe to diversify sources of energy supply.  The good news is that the pipelines operating on Georgian territory through what is emerging as the Southern Corridor were not affected by the brief war in Georgia.

These routes will enable the transport of competitively priced Caspian energy resources to European and world markets, thereby furthering global energy security.  It is our hope that this will bring willing sellers and potential new buyers together.

It is important to pursue the integration of the energy market that the nations assembled here represent.

Azerbaijan has set a strong example of working in partnership with private investors who have demonstrated international experience, diverse technical expertise, experienced employees and a proven track record of successful project execution.

There is no doubt that this region’s energy potential, if realized, will result in significant economic growth for its people and its investors, and help deepen Azerbaijan’s connection to Europe as a strategic partner.

If we continue to promote a strong investment climate -- including transparency and the rule of law -- we can look forward to additional energy projects that will bring great benefits to the citizens and economies of this region and, as a result, the entire world.  Congratulations on your success and thank you for inviting me to be here with you.

Location:
Baku, Azerbaijan

Media contact(s):
Healy Baumgardner, (202) 586-4940