Oil Market Balance, Key to Energy Security
Economic Cooperation Organization (ECO) Secretary General Shamil Alaskerov has said creating balance in international oil market and responding to world’s increasing demand for energy are moves aimed at providing energy security.
Speaking at the 2nd ECO Conference on International Cooperation in Energy Field, Alaskerov referred to the major challenges with which the world energy market is faced with today, arguing that creating balance in the market and responding to the increasing demands for energy in the world aimed at provision of energy security is a very important issue in the world now.
The 2nd ECO Conference on International Cooperation in Energy Field, cosponsored by the University of Tehran’s Exclusive Studies Center, was held in the presence of the former secretary general of ALBA (formally the Bolivarian Alliance for the Peoples of Our America), oil market and economy experts and some ambassadors of Latin American countries.
The conference, held at the College of Laws and Political Sciences of the University of Tehran was aimed at adopting joint policies in energy field, especially on oil market, had three panel discussions on world energy status.
The ECO secretary general expressed that organization’s enthusiasm is taking effective and influential steps and having evermore dynamic participation in the international energy market regulation.
He expressed hope that the Sunday ECO conference will provide an appropriate opportunity aimed at better understanding of ALBA’s capacities in oil market regulations.
Alaskerov said that the ECO member countries, with their 8 million square meter vast territory and 400 million strong population have since the ECO establishment been focusing on devising a framework and providing appropriate structures for broader cooperation in energy field.
He said ECO, which covers more than 400 million people in its member countries, has been setting frameworks and designing structures for broadening cooperation in the energy sector.
Alaskerov said reducing energy risk is among main objectives of ECO, adding that this organization is making efforts to help reduce greenhouse gas emissions.
He noted that one-third of ECO member states are rich in oil and gas and make great contribution to world energy security. “ECO provides good opportunities for its member states to broaden cooperation in the energy sector.”
He said that ECO has been trying to eradicate energy poverty and has already established a regional electricity market, saying this process would expand with the participation of Iran and Turkey.
Alaskerov also referred to ECO members’ potentialities for investment in renewable energies, saying the member states desperately need investment in this sector.
ECO is an intergovernmental regional organization established in 1985 by Iran, Pakistan and Turkey aimed at promoting economic, technical and cultural cooperation among member states.
The organization was expanded in 1992 to include seven new members, namely Afghanistan, Republic of Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.
ECO provides its members with a platform to discuss ways of improving economic development, and promoting trade and investment opportunities.
ALBA is an intergovernmental organization based on the idea of the social, political and economic integration of the countries of Latin America and the Caribbean. The name "Bolivarian" refers to the ideology of Simón Bolívar, the 19th-century South American independence leader born in Caracas who wanted Hispanic America to unite as a single "Great Nation."
Founded initially by Cuba and Venezuela in 2004, it is associated with socialist and social democratic governments wishing to consolidate regional economic integration based on a vision of social welfare, bartering and mutual economic aid. The nine member countries are Antigua and Barbuda, Bolivia, Cuba, Dominican Republic, Ecuador, Nicaragua, Saint Vincent and the Grenadines, Venezuela and Saint Lucia.
Iran, China Eye Broader Oil Cooperation
Iran and China have underscored the need for broader oil cooperation. The issue was discussed during a meeting between Chairman of China National Petroleum Corporation (CNPC) Zhou Jiping and Iranian Ambassador to China Ali-Asghar Haji.
The two sides said Iran and China, given their long-standing friendly ties, need to expand their oil cooperation.
Zhou and Haji exchanged views about joint efforts by the two countries to enter new oil interactions.
According to official figures, Iran was a main supplier of oil to China in 2013.
Despite international sanctions against the Islamic Republic, China’s oil imports from Iran have not changed significantly over the past two years. Iran has been selling 350,000 to 540,000 b/d of oil in the past two years.
According to China’s customs office data, Iran exported 421,530 b/d on oil on average to China in 2013. In November 2013, China’s oil imports from Iran reached 538,513 b/d, twice the October’s imports.
Iran Self-Sufficient in Oil Platforms
Managing director of National Iranian Tanker Company (NITC) Ali-Akbar Safaei has said that Iran has become self-sufficient in building oil platforms.
“Measures have also been started for transferring in technology of building and overhauling big vessels and drafting marine standards. They will become operational in the near future,” he said.
Safaei said Iran’s marine industry is still far from favorable conditions, adding that appropriate measures have been taken in recent years in this sector despite international restrictions.
He referred to the construction and reparation of oil platforms and reparation of vessels in Iran as a big achievement for Iran’s marine industry, saying the most secure way for acquiring shipbuilding technology would be to start from reparation.
“By conducting reparation and acquiring a share of this market, we will definitely win the confidence of foreign owners for building,” said Safaei.
He said that it would be logical to envisage domestic manufacturing of vessels carrying liquefied natural gas (LNG). However, he added, the LNG carrying vessels are complicated in construction.
Safaei said building LNG vessels require infrastructure, transfer of technical savvy and acquiring skills which would be achieved by building smaller ships.
He said that NITC has in the past paved the way for the transfer of seven instances of technology into the country to help domestic manufacturing.
“We hope that we will soon witness close cooperation between shipping and shipbuilding companies with a view to developing this industry in the country,” said Safaei.
Forouzan Output to Double
Production from Forouzan oil field, jointly operated by Iran and Saudi Arabia, is to double in two years, head of Forouzan development project said.
“After completion of platform 18F in 2015 and platform 19F in 2016, the production capacity in Forouzan will double,” Ebrahim Delavaran said.
He said that construction of two new platforms – LQA and FZA – have started in Forouzan oil field and the required equipment is being purchased.
“After gas supply operations are done, production from this field will rise by 10,000 barrels,” he added.
Delavaran said realization of objectives set for production enhancement in this field depends on financial issues.
Forouzan was among fields whose production is expected to rise under a deal signed between National Iranian Oil Company (NIOC) and eight Iranian universities.
Located 100 kilometers southwest of Kharg Island, Forouzan is shared with Saudi Arabia where it is known as Marjan.
Forouzan was discovered in 1966 with 2.309 billion barrels of oil in place.