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IEA Executive Director: In case the oil price rises, US will bring a large volume of oil on the market and the oil price will decline again - INTERVIEW

IEA Executive Director: In case the oil price rises, US will bring a large volume of oil on the market and the oil price will decline again - <span style="color: red;">INTERVIEW

12 October 2016 11:32 (UTC +04:00)

- Russian president Vladimir Putin said in his speech at the opening of the 23^rd World Energy Congress that the oil output freeze is only way to rebound the prices. What is your opinion about this?

- The world will have need for oil and gas for long time. Because as the countries like China, Indonesia, India are developing, the people will buy car and the need for oil will increase. It’s impossible to imagine the development of the industry without natural gas. Along with this, renewed, solar, wind and hydraulic energy are also used in the world. Further situation will make oil and gas producing countries more important. However, I want the energy importing countries, including Turkey not to depend on a single source, but buy oil and gas from different sources.

- One of the issues discussed in here is the ways to increase the oil price. How do you think, will these discussions help find ways to increase the price?

- Oil countries are holding discussions to limit the output. Will the decisions to be made as a result of discussion help oil price to rise? We don’t know it, however, the pressure in the market will be increased for increase of oil price. If the prices increase as a result of these pressures, the US will benefit from it. US oil production will rebound and consequently, the US will bring a large volume of oil on the market, which will cause oil price to lower. According to the situation, the oil price will rise and drop anyway.

- Will Russia’s this persistence be useful for the US?

- According to the latest analysis, the US-based independent oil producers are waiting for increase in oil price.

- Won’t the intervention in market by reducing output and increase of oil price by this method affect the investments in other industrial spheres?

- In my opinion, the people must think of not only energy, but wider spheres. If they think widely, the world economy will face less negative impacts.

- Russia and Turkey have different viewpoints on Turkish Stream project. How do you think about this?

- Russia is one the important cornerstones in the energy market. Cooperation of two neighboring countries in energy sphere is normal. I don’t take Turkey’s energy dependence on Russia or any country as truth. The relations with Russia are good today, but tomorrow they may change. Turkey should import energy from different sources from the Mediterranean Sea to the Caspian Sea in order to have a strong foreign policy.

- We also face such commentaries within the foreign policy: Russia fulfills Turkey’s desires, on the other hand, for example, lays down condition not to provide support to groups in Aleppo.

- I am not aware of other sides of the issue. It wouldn’t be true to speak about this as I am not specialized in this sphere. But, Turkey and other countries have not to put the eggs in one basket.

- At the opening of the congress, Azerbaijani president Ilham Aliyev drew attention to energy cooperation between Azerbaijan and Turkey, which started ten years ago and continues to improve. What do you think about this?

- Azerbaijan is important country for both Turkey and the region. In spite of significant problems, Azerbaijan made right decision about large-scale strategic projects. For example, TANAP. To my mind, TANAP is a five-star project for Azerbaijan, Turkey, region and energy industry. It will increase energy security in the world, Europe and Turkey. TANAP will bring benefit to Azerbaijan’s economy and positively affect the country to strengthen position in the world.

- At the opening, Turkish president Recep Tayyip Erdogan said they want TANAP to transport Turkmen gas too. What is your opinion about this?

- Turkmenistan has natural gas in the volume Norway has and is able to change the balance. For transportation of Turkmen gas via TANAP, every country must work seriously. If other countries provide support and Turkmenistan takes necessary steps, the balance in the region may be changed.