Embassy Press Release

WELCOMING REMARKS
Delivered by The Ambassador of the United States of America, Nicholas F. Taubman, On the Occasion of A Conference on Regional Energy Cooperation
Hosted by the U.S. Embassy, German Embassy, and the George C. Marshall Association - Romania
Under the high patronage of Mr. Traian Basescu, President of Romania

October 26, 2006
At the Union Hall,
Cotroceni Palace
Bucharest, Romania

President Basescu;

Ambassador Lohkamp, Deputy Minister Javadov, Mr. Savva, members of the diplomatic corps, distinguished ladies and gentlemen;

It is my distinct pleasure to join President Basescu, and Ambassador Lohkamp in welcoming you today to this discussion of regional energy cooperation. Once again, I am pleased to partner with my Romanian and German colleagues and with the George C. Marshall Association in Romania to discuss an issues of great significance to all of us in this room. I am happy to have with us today Deputy Assistant Secretary of State Matt Bryza, whose great expertise in this part of the world will surely contribute to a dynamic dialogue.

One of the grand challenges in the years ahead for the region, for Europe, for all of us in fact, will be providing for a stable, diversified flow of energy to underpin our own growth and to facilitate dynamic growth in the world's emerging economies.

We need to work together in this endeavor. That means exploring new supply markets, developing new energy sources, and making better use of the ones we have. Experts say that the existing infrastructure, the existing fields in production, will not be enough to supply Europe's growing demand. The tigers of the emerging economies, and Romania is certainly one of them, will need access to energy to sustain their robust growth. New markets must be tapped and new means of transport must be developed. Projects like the Nabucco pipeline, though they will represent only a fraction of demand, will bring a new dimension to the European gas market. By providing an outlet for Caspian Basin gas, Southern Corridor projects can directly contribute to an increasingly healthy, diversified, competitive European energy market.

This will take cooperation; between governments, yes, but also between government and industry. For all of our markets to flourish, countries must be open to capital and know-how. People have a right to benefit from the assets in their ground, but the best way to ensure the assets continue to flow for the long run is to embrace expertise, innovation and investment. Facilitating access for new products to new markets just makes sense. They will benefit your citizens, your customers, whether they be a glass factory in Transylvania or a pensioner in Bavaria. It is time to make this work.

And the conversation does not stop at hydrocarbons. New sources of energy powered by the wind, the sun or the atom must be tapped. Here in Romania, the port of Constanta is planning a wind turbine project to power all of its activities. General Electric turbines, I might add. New nuclear reactors are coming on line as well that will triple the current production. Once a nuclear plant is constructed, its fuel and operating costs are among the cheapest forms of energy available. Nuclear is the second-largest energy source in the United States, and represents an increasingly important fuel source for the rest of the world. For these reasons, President Bush launched the Global Nuclear Energy Partnership earlier this year. America will work with partners such as France, Japan, and Russia, to assist developing countries in meeting their growing energy needs in a secure and cost-effective way. We must work together to find such creative solutions to our energy concerns.

And, lest we forget, we must make better use of what we already have. We all need to improve efficiency. Many industries throughout the world, and this region as well, survive on outdated, outmoded technology because they receive subsidized fuel prices and other government support. This is sending the wrong market signal and postponing the inevitable. One thing that we need to get right is market pricing, brought about by diverse and robust competition. By moving energy prices toward a market basis, we will be helping our economies reorient away from the 20th Century and toward the 21st.

Once again, I am pleased to welcome you today. Through dialogue and cooperation, we will buttress the foundation for our economic future.

Thank you and welcome.

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