'Azerbaijan should preserve stable oil output'

Member companies of the Caspian-European Integration Business Club met with Natig Aliyev, Minister of Industry and Energy of Azerbaijan, in Baku on February 29. Companies' proposals for working out "Azerbaijan 2020: Vision into the future" development concept approved by Azerbaijani President Ilham Aliyev on November 29, 2011 were discussed at this meeting.

While giving a speech at the meeting Natig Aliyev highly evaluated present initiative of CEIBC since such meetings promote the establishment of business-to-power dialogue, share of opinions, discussion of proposals on prospects of development, solution of problems that the mankind faces and revealing their impact on Azerbaijan. "I assume that meetings arranged by CEIBC bring us closer to each other", he said and gave high evaluation to such activities since government agencies get an opportunity for providing information about their success and work to business and community as well as discuss prospects of solution of problems.

Speaking about the support of small and medium entrepreneurship (SME) in Azerbaijan Minister noted that this sphere started developing intensively after President of Azerbaijan Ilham Aliyev signed on order on SME support in 2002.

Natig Aliyev noted that success gained in development of SME was emphasized by Azerbaijan's President Ilham Aliyev at the conference held on February 28 and dedicated to the outcomes of the third year of implementation of the "State program on social-economic development of Azerbaijan regions for 2009-2013". According to him, the head of the state highlighted main directions of economy development till 2023 and summed up the results of the governmental activity in the field of SME support.

The Minister reminded that President of Azerbaijan Ilham Aliyev signed an Order on working out Azerbaijan 2020: Vision into the future" development concept on November 29, 2011. Government agencies are currently engaged in development of corresponding programs in accordance with this document. Programs designed for future are practiced in different countries. For instance, UN has several projects designed for future and each of them has several development scenarios. These development programs cover 2015 and 2035.

These programs include matters that the mankind faces. One of them is the matter of population growth especially in developing countries. All of this requires creation of new material resources, the Minister noted. Issues of food products shortage are also under consideration since 20% of the global population is starving now. Double and triple growth of food products production is needed for solving this issue. Issues of ecology, drinkable water shortage, desertification of territories, CO2 and energy emission are also under consideration.

Speaking about energy resources, the Minister noted that all agree today that oil and gas reserves are reducing in the world. "Half of all primary oil and gas resources was used in the world over the past 100 years. Today's resources will suffice for 60 years. In spite of the fact some that some experts declare about availability of large-volume of hydrocarbons in the Arctic zone, it is noteworthy that they are hard to reach and require big investments. Investments to the sum of $36 trillion are needed for maintaining the reserves of hydrocarbons at current level till 2035, the Minister said.

According to him, the era of cheap oil and gas is left behind. Further there will be only price growth for energy resources. In his opinion, it is connected not only with certain geopolitical processes but also with the growth of expenditures for production amid toughening requirements for environmental protection and other issues. If oil production used to cost $4-5 per barrel before, today this figure totals $35-40. I.e. development of many global fields will be unprofitable if the price for oil keeps declining, N. Aliyev said.

Azerbaijan started working out "Azerbaijan 2020: Vision into the future" development concept for solution of these and other matters. Minister noted intensive development of Azerbaijan. It is more noticeable comparing the present level of development with the level that observed during the independence gaining 20 years ago. If Azerbaijan's economy was collapsed and the political situation was in desperate condition during the independence gaining, today we have stability, Azerbaijan's influence keeps growing both domestically and externally, N.Aliyev said and noted that Azerbaijan was the first among the CIS countries which entered the Security Council of the UN. 155 countries out of 220 voted for Azerbaijan. He also noted that Azerbaijan had been invited to the session of G20 Foreign Affairs Ministers. It is also big success. "We turned into a strong country from a poor one that was 20 years", N. Aliyev said. According to him, currency reserves of Azerbaijan exceed $40 bln today. Many social programs are under implementation. Life conditions of the population are improved as well.

Speaking about prospects of development, N.Aliyev noted that both geopolitical and internal general political stability is needed for the economic growth. For instance, there is no economy development in certain Arabic countries which abound in oil deposits but have no stability.
Telman Aliyev, President and CEO of CEIBC, spoke about the activity of the Club during the meeting. He stressed the importance of work that is carried out within the frames of this development concept.

The Minister of Industry and Energy of Azerbaijan was given an honorary membership certificate of CEIBC. Certificates were also given to ambassadors of Turkey, Romania and Ukraine to Azerbaijan as well as to new CEIBC companies. Participating in the meeting of CEIBC were managers of companies and representatives of a number of diplomatic agencies accredited in Azerbaijan.


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