18 September 2002
Bush, Abraham Hail Benefits of Baku-Tbilisi-Ceyhan Pipeline
((Presidential statement, Secretary of Energy remarks, press release)) (1880) In a statement read by Secretary of Energy Spencer Abraham at a ceremony in Baku, Azerbaijan, September 18, President Bush hailed the Baku-Tbilisi-Ceyhan pipeline as "a central component of a new East-West energy corridor that will provide far-reaching benefits." "These include attracting new investment to the region, enhancing global energy security, strengthening the sovereignty and independence of countries in the Caspian Basin, and bolstering these states' economic cooperation and integration into the global economy," Bush said. In addition, the pipeline makes Caspian energy available to the world while avoiding the narrow and crowded Bosporus and protecting Georgia's Borjomi Aquifer, he said. The President praised the "spirit of cooperation and trust built up between the governments of Azerbaijan, Georgia and Turkey" as "a model for future cooperative development efforts, both for the new partners and for other countries in the region." He noted that Azerbaijan's President Heydar Aliyev has created a state oil fund to direct revenues from oil-related foreign investment to improving education, reducing poverty, and raising the standard of living among Azerbaijan's rural population. In his own remarks at the ceremony, Secretary Abraham praised Aliyev's "vision and determination to see the pipeline become a reality." Upon its completion in 2005, the 1760-kilometer pipeline will be able to carry more than one million barrels of oil per day, Abraham said. Following are the presidential statement, Secretary Abraham's remarks, and a Department of Energy press release on the groundbreaking: (begin text) (begin presidential statement) The White House Washington, D.C. PRESIDENTIAL STATEMENT I send greetings and congratulations to the people of Azerbaijan, Georgia and Turkey, and Presidents Aliyev, Shervardnadze, and Sezer, on the inauguration of the Baku-Tblisi-Ceyhan oil pipeline project. I am pleased that this important project is underway and that the United States has actively contributed to its development, in a close public-private partnership with regional governments and with investors led by BP. I am particularly proud of the American commercial contribution to this project by Unocal and Delta Hess. The Baku-Tbilisi-Ceyhan pipeline is a central component of a new East-West energy corridor that will provide far-reaching benefits. These include attracting new investment to the region, enhancing global energy security, strengthening the sovereignty and independence of countries in the Caspian Basin, and bolstering these states' economic cooperation and integration into the global economy. The pipeline will benefit the countries of the region, and those throughout the rest of the world. I commend the government and corporate leaders attending today's ceremony on your strategic vision and determination. The United States looks forward to a continued partnership with you in ensuring that Caspian energy resources help foster peace and prosperity for many years to come. Laura joins me in sending our best wishes. Although it will be some time before the first barrel of oil flows through this pipeline, it has already made a significant contribution to the future of this region. The spirit of cooperation and trust built up between the governments of Azerbaijan, Georgia and Turkey as they worked together to fashion this project, can serve as a model for future cooperative development efforts, both for the new partners and for other countries in the region. And we must also recognize the transformative power of private sector investment. We believe the combination of governments and private companies working together in public-private sector partnerships will be the key to successful energy resource development throughout the world in years to come. Encouraging such partnerships is fundamental to America's energy policy. Your example will serve us well in the future as we look to expanding partnerships in the energy field. By working together, you are opening the door wider to the rich energy resources of the Caspian region. The increase in economic activity, employment, revenues and exposure to new technology that will come with the pipeline should benefit all the people of your three countries, and especially of Azerbaijan. This pipeline will accelerate the pace of energy resource development in Azerbaijan, and contribute to such commendable devices as the State Oil Fund, created by President Aliyev to direct revenues from oil-related foreign investment to education, reducing poverty and raising the standard of living among Azerbaijan's rural population. The United States looks forward to continuing to work together with the governments of the Caspian region as you become more active participants in world energy markets and apply production and transportation revenues to accelerate the growth and diversification of your economies. We believe that cooperative development projects such as this one are the surest way to local, regional and global peace, prosperity and freedom. And, of course, the oil that flows through the pipeline will help satisfy the increasing energy needs of fast-growing nations around the world. Without this pipeline -- and without your leadership -- those resources would simply have remained undeveloped and unavailable to global markets. As millions of barrels of oil flow from this pipeline, so too will we see a steady flow of benefits from this cooperative effort. When completed, this project will strengthen international energy security. When it reaches capacity, a million barrels of oil a day will be added to global supply. It could not come at a better time. Over the next 20 years, world demand for energy will grow by nearly 60 percent. But that growth will not be evenly distributed. Developing nations in Asia and Latin America are expected to more than double their energy demand and will alone account for over half the total projected increase in global demand. At some point during the next two decades, the developing world will begin to consume more energy than the developed world. It would be a great disservice to the people of the world, and a potential cause of political and economic instability, if we failed to develop the resources to meet that demand. But we will develop those resources - and this pipeline project is a fine example of how we will do it. Greater energy security through a more diverse supply of oil for global markets, these are the engines of global growth ... and with this pipeline, those engines can now run at high speed. Azerbaijan, Georgia, Turkey, the world oil industry, and consumers around the world will all benefit. This project will also prove that we can boost global energy supplies at the same time we ensure the highest levels of environmental protection. It provides a safe, secure route for oil that avoids the narrow and crowded Bosporus waterway, protects Georgia's Borjomi Aquifer, and sets the highest standards in construction and operating techniques of any long-distance pipeline in the world. Clearly, this project demonstrates a shared commitment to responsible environmental performance, and I commend everyone involved. Finally, we are proud to have contributed to the spirit of cooperation that has brought us here to celebrate together today. Sometimes the work of improving international relations and gaining acceptance for cooperative projects seems to move forward at an agonizingly slow pace. But think of the distance we have traveled and the progress we have made in a short time... progress that would have been considered an idle dream just a decade ago. Our common security interests, our commercial interests, and our interests in peace and prosperity will be strengthened with each length of pipe laid along this line. This event ... all of us here today ... are part of a new, more promising chapter in a new, more promising history between our nations. As we write that chapter, let us pledge to continue the work so nobly advanced by those whose achievements we recognize with this important ceremony. Thank you. (end presidential statement) (begin Abraham remarks) Baku, Azerbaijan REMARKS BY ENERGY SECRETARY SPENCER ABRAHAM BTC PIPELINE GROUNDBREAKING CEREMONY BAKU, AZERBAIJAN - It is a great pleasure to be with you today to mark the beginning of the construction phase of the Baku-Tbilisi-Ceyhan oil pipeline. This remarkable commercial and engineering project will deliver oil from the Caspian Sea through Georgia to the Turkish Mediterranean coast in Ceyhan 1,760 kilometres away - and from there to the world. The participants in this project have come a long way since September 5, 1997 when President Aliyev created the Azerbaijan Main Export Pipeline Working Group. In the five years since that date, President Aliyev never wavered in his support for an East-West oil and gas export corridor. His vision and determination to see the pipeline become a reality made it possible to steer through the complexities of a project as large and important as this one. I want to also recognize the contribution of British Petroleum as operator of the project. BP has done an outstanding job of building an international team of private companies to give life to the BTC pipeline. BP is an important investor in the Alaska North Slope oil field in the United States and we know them well. I am very pleased to note that two American companies, Unocal and Amerada Hess, are participating in the project. President Bush is well aware of the importance of this project. He has sent a message to President Aliyev and the participants in this ceremony, which I will read to you now. (end Abraham remarks) (begin Department of Energy press release) Department of Energy Washington, D.C. September 18, 2002 SECRETARY ABRAHAM JOINS PRESIDENTS OF AZERBAIJAN, GEORGIA AND TURKEY TO OPEN THE BTC PIPELINE Baku-Tiblisi-Ceyan Pipeline Meets National Energy Policy Goal WASHINGTON, DC -- Secretary of Energy Spencer Abraham joined the Presidents of Azerbaijan, Georgia and Turkey to commemorate the groundbreaking for the Baku-Tiblisi-Ceyan (BTC) Pipeline, a project in planning since 1997 that will provide for the export of crude oil from Azerbaijan, in the Caspian region, to Ceyhan, on the Turkish Mediterranean coast. "This is an historic achievement for the people of Azerbaijan and for the world's energy infrastructure," Secretary Abraham said. "President Bush's National Energy Policy calls for the United States to support the increase in energy production throughout the world, and the BTC pipeline is an excellent example of what international cooperation can accomplish to meet that goal." The Caspian Sea region contains 10 billion barrels of proven oil reserves, with probable reserves of more than 230 billion barrels. Exploration continues, however, and proven reserves are expected to rise dramatically. Current exports from the region are limited by export infrastructure options, but with the construction of the BTC pipeline could increase to more than one million barrels of oil per day by 2005. Foreign investors and technology are critical to rapid development of new commercially viable export routes. Such development will ensure that rising Caspian oil production is effectively integrated into world oil trade. Specifically, U.S.-supported East-West pipeline routes, such as the BTC, will add substantial new oil transportation capacity to allow continued expansion of production and exports. The BTC pipeline, an overland route, will also help mitigate maritime risks in the crowded Bosporus Straights. The BTC pipeline project is under the management of an international consortium led by BP Oil and the State Oil Company of the Azerbaijani Republic (SOCAR) and, at its peak throughput level, is expected to transport 800,000 to 1 million barrels per day. During the groundbreaking ceremony, Secretary Abraham read aloud a letter from President Bush congratulating Azerbaijan President Heydar Aliyev and the BTC partners on their success in the project and enhancement of international energy security. (end Department of Energy press release) (end text) (Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
