World Energy Council Romania: Secure Energy for Economic Development
Opening the Romania Oil & Gas Conference in Bucharest, Romania, Iulian Iancu, Chairman, Romanian National Committee of World Energy Council, gave a wide-ranging speech on what he said was an extremely important: energy.
Noting that 2014 has seen the highest level of risk for energy security, he said it is a period of major challenges. “Natural gas is the new king of energy at a global level,” he remarked, referring to the shale gas revolution.
Of Europe, he said the continent is in a period of major challenges – the most important of which is the conflict between Russia and Ukraine, because the former is providing 156 BCM/annum of gas, 55% through Ukraine, 21% via Belarus and 8% via Estonia, 3% via Finland and 10% via Turkey and Greece.
He remarked, “All these corridors are at present in an area of major geopolitical risk, but the highest risk is represented by the Russia-Ukraine situation because of over 50% being provided by that area. Conflicts around Europe are targeting energy raw material areas in Europe.”
Meanwhile, gas from other sources like Libya and Algeria, he explained, are areas of conflict; other potential sources like Iran-Cyprus are in conflict, while in Syria there is outright war. “This practically blocks the security of energy supply in Europe,” added Mr. Iancu.
One potential source, he offered, is natural gas from North America via the abundance of the shale boom, entering Europe via 21 LNG terminals; seven, he said, are under construction and the gas itself will not be available until 2017.
Mr. Iancu also spoke of decoupling the energy agenda from the political agenda, as their timelines were not in alignment. “Energy security should be at the top of the global agenda,” he opined. “Irrespective of the economic sector we believe you cannot finish any economic development strategies if you don't have the energy supply secured.”
In connection with this, he said the European Union should continue to pursue make interconnection, the systems of transport and distribution of natural gas, LNG terminals, the creation of the single market for natural gas and electricity.
-Drew Leifheit