The primary issues discussed at the meeting included unconventional energy resources, energy transport infrastructure, prospects for transitioning to a low-hydrocarbon economy compliant with national energy security and environmental protection.
The International Energy Forum (IEF) was founded in 1991. IEF members include 89 countries producing and consuming energy, as well as the EU, the International Energy Agency and the Organisation of Petroleum Exporting Countries. The IEF’s main goal is to expand the informal dialogue between energy producers and consumers.
Dmitry Medvedev took part in the plenary session, The New Geography of Energy: Business as Usual or a New Era for Energy Supply and Demand?
Dmitry Medvedev’s speech:
14th International Energy Forum ministerial meeting
Esteemed ministers, representatives of states and international organisations, ladies and gentlemen, first of all, I would like to say that I am happy to take part in the 14th International Energy Forum ministerial meeting. Regular and important dialogue between the main energy resources producers, consumers and trans-shippers is conducted at precisely this venue.
Dmitry Medvedev: "Regular and important dialogue between the main energy resources producers, consumers and trans-shippers is conducted at precisely this venue."
Our meeting is taking place at a difficult time. The sustained and predictable development of global energy markets is becoming particularly important against this backdrop.
Participants in today’s Government meeting will discuss Russia’s development forecast for the next three years. Of course, owing to the well-known structure of the Russian economy, this forecast is largely linked with fuel and energy prices … Russia is, indeed, a major fuel and energy producer and exporter. On the whole, Russia accounts for about 20% of the global fuel and energy trade turnover.
During the entire course of its development, Russia has held a reputation as a reliable and responsible partner on fuel and energy markets. We have fulfilled all our contractual obligations, and we plan to continue doing this in the future. Therefore, we have contributed, and we continue to make our contribution to ensuring global and regional energy security. And, of course, we greatly cherish this reputation.
The Russian fuel and energy sector is currently experiencing some rather serious changes. First of all, these changes are linked with the development of shelf deposits containing high-viscosity oil, as it’s called, and oil production in polar latitudes. We are implementing large-scale refinery modernisation projects, and we are actively developing the pipeline transport network.
Dmitry Medvedev: "During the entire course of its development, Russia has held a reputation as a reliable and responsible partner on fuel and energy markets. We have fulfilled all our contractual obligations, and we plan to continue doing this in the future. Therefore, we have contributed, and we continue to make our contribution to ensuring global and regional energy security."
Russian companies continue to develop new export routes. I am talking about the Asia-Pacific region in this context. Asia-Pacific countries play an increasingly greater role in the global fuel and energy demand, and hydrocarbon producers will focus on these countries.
To be honest, the Asia-Pacific region tends to largely determine the contours of the future global economic security system. As an inalienable part of this region, Russia plans to take the most active part in this process. Therefore, Russia considers cooperation with Asia-Pacific countries to be important not only as a current and future market, but because this also makes it possible to expedite the development of huge Russian regions, specifically, Siberia and the Far East. At the same time, I would like to emphasise the fact that Russia considers all its partners to be important, including Asian and European partners. We do not refuse to cooperate with anyone, and we do not plan to say “no” to anyone.
Energy should help improve living conditions and create a foundation for sustainable economic growth, but using energy deliveries as a political instrument could endanger energy security. An artificial diversification of energy routes could sever traditional economic ties, dramatically increase expenses, and result in the creation of unprofitable enterprises. This can affect the development of national economies, especially amid economic instability. We must take this into account.
Dmitry Medvedev: "Being a reliable energy supplier, Russia should take into account all the risks in the energy sector. Changing the geography of the supply routes seems like a logical option if tensions around energy deliveries grow."
14th International Energy Forum ministerial meeting
Of course, the importance of new innovative methods of mining energy resource and producing energy will keep growing. The world has felt the first effects of the shale revolution, which is underway in the United States and many other countries. However, traditional methods of energy production will continue to play the key role in the global markets for a very long time.
Being a reliable energy supplier, Russia should take into account all the risks in the energy sector. Changing the geography of the supply routes seems like a logical option if tensions around energy deliveries grow.
I’d like everyone to know that this is not what we want. We want predictable rules of the game in the energy market, rules that would not be changed unilaterally or become victim of political speculation or change of government. Both producers and consumers should be confident of the stability of terms and should be able to make investment plans and to expect their investment to pay back.
There is one very simple thing: One must pay for energy. I hope all countries and all consumers, both those who are present at this forum and those who could not attend, for one reason or another, including Ukraine, understand this. Payments must not be connected with politics in any way. Of course, market players’ positions have been and will always be different, but we nevertheless need an objective and independent assessment of the possible consequences of decisions that concern the vital energy sphere. We need a collective early warning system on all and any issues that can arise. It must not infringe on the freedom of action of market players or their associations. On the contrary, it should help protect the common interests of energy producers, consumers and transit countries.
Dmitry Medvedev: "I hope that the International Energy Forum is one of the possible venues for constructive and fruitful cooperation. We should act cooperatively and should consistently use the capacities of the leading global energy establishments."
No country, including Russia, can resolve this issue single-handedly. We should act cooperatively and should consistently use the capacities of the leading global energy establishments. I hope that the International Energy Forum is one of the possible venues for such constructive and fruitful cooperation.
The goal of our efforts is obvious: We must work to create a more transparent and predictable energy market where the interests of all players would be taken into account as much as possible.
