Energy Diplomacy
With key infrastructure, Turkey can be energy hub: WPC
- Turkey's strategic position needs to be enhanced with trading agreements, World Petroleum Congress head says

Turkey can become an energy trading hub if it has sufficient underground storage, take risks in diversifying gas supplies, and build pipeline interconnections with European companies, Dr. Jozsef Laszlo Toth, president of the World Petroleum Congress (WPC) told Anadolu Agency (AA)

In an exclusive interview ahead of 22nd World Petroleum Congress, of which AA is the global communication partner, Toth said that Turkey offers very important transit routes for energy for Central Asia and from this region via the Mediterranean to Europe or through the Mediterranean to other parts of the world.

Toth explained that Turkey is already dependent on individual arrangements and agreements with countries who own hydrocarbons, but for Turkey to become an energy trading hub, its strategic position needs to be combined with other trading agreements.

Turkey's strategic position as a transit route is already sealed, and the country can perform this task, but the Turkish government needs to take this financial risk, he argued.

Toth said that discussions on this topic will take place during the Turkish segment at the World Petroleum Congress in Istanbul between July 9 and 13.

- WPC

Toth also elaborated on the activities of the London-based WPC organization established in 1933, which this year will be held in July in Istanbul.

"The organization is a not-for-profit organization. It is a United Nations accredited organization. Countries are members, not companies - this is very important. Countries have to establish a national committee and this committee has to cover the majority of oil and gas interests and activities in that country including companies, academia, universities and traders," he said.

The Congress's participants include high level executives of the industry, board heads, CEOs, ranging from the largest energy giants down to small-medium size companies to smaller companies.

The organization of the WPC Congress every three years generates huge competition among candidate countries to host the event, which has been dubbed the Petroleum olympics.

"A lot of new information and new achievements are shared (at the congress) and this is a big plus. I expect that it will be a very successful congress because it will ensure positive feedback to the country. So it is very important," he said.

The Turkish organizing committee made very good progress, Toth underlined, adding that the committee will also get many young people involved from WPC member countries.

Toth said that the future of oil amid a very volatile climate will also be discussed at the Istanbul conference.

He determined that the two main challenges in the oil industry lie with the attempt to reduce carbon emissions and the price volatility in the market, the challlenges of which will be comprehensively analysed by experts at the conference.

"I think the most important challenges can be expressed in two ways. One is with the COP 21 Paris agreement to reduce carbon emissions, which is a challenge for the industry. This is simple but very costly," he explained.

"Price volatility is not a new challenge but it is an ongoing challenge. I think you cannot normally interfere in the economic process. This has always been the case that volatility arises basically when financial institutions use this vehicle more intensively," he argued.

By Ebru Sengul

Anadolu Agency

ebrusengul@aa.com.tr

 

25 Mar,2017
ENERGY DIPLOMACY NEWS