Bush sends A-team to lend support to Turkey’s energy policy
Posted by meb at November 1st, 2008
US President George W. Bush has sent a high-profile team to Turkey to help “diversify Turkey’s energy mix and to promote Turkey’s role as a strategic energy corridor,” a senior US official has said.
US Deputy Secretary of Energy Jeffrey Kupfer arrived in Turkey on Thursday with a delegation of senior US officials to attend the World Economic Forum and hold high-level talks with Turkish politicians and members of the business community. The stated purpose of the visit was to reaffirm the “US commitment to help Turkey strengthen its energy security” and find ways in which the US could assist Turkey, such as financing projects during this time of crisis when commercial banks are much less willing to lend.
Today’s Zaman had the opportunity to attend a private meeting with the delegation, which consisted of US Overseas Private Investment Corporation (OPIC) President Robert Mosbacher, US Export-Import Bank Chief Operating Officer John McAdams and US Trade and Development Agency Director Larry Walther, and discuss the US administration’s plans. Speaking at the small roundtable event, Kupfer stated that the delegation had been sent by Bush to help “diversify Turkey’s energy mix and to promote Turkey’s role as a strategic energy corridor.” Noting that several members of the delegation had worked with Turkish companies for a significant number of years, Kupfer emphasized that the trip would also give US agencies a feel for what individual companies were looking for in order to facilitate investment and reaffirmed the US government’s commitment to the “westward flow of Caspian resources.” The administration’s position, he clarified, was that “Turkey is in a position to enhance its energy security and provide solutions to its upstream and downstream partners”.
In an exclusive interview with Today’s Zaman after the meeting, Kupfer reiterated the good strategic relations that Washington enjoys with Ankara on a number of fronts. “We are here with this particular delegation because we are looking for a continued push for energy diversity around the world, especially in the Caspian region and in Europe,” he said. “Turkey plays a vital role in that overall policy.”
The delegation, he said, would specifically talk with the government and the private sector about their financing requirements. When asked if there were any specific companies that the delegation was working with or if there were any concerns on the part of the delegation regarding the tender process, Kupfer did not want to comment on any particular deals, but stated: “Our role is to make sure that the tenders and the rest of the business climate are conducive to US companies having the ability to compete. It’s in everyone’s interest that the investment climate is supportive of multiple companies being able to compete in the tenders and being able to get the best prices and the best technology.”
The US has long been active in promoting energy diversification in Turkey and elsewhere and promotes not only alternative pipeline routes, but also alternative energy sources. “These are not just our goals — they are Turkey’s goals. We all share the same goals. There is energy security, and we are looking to diminish dependence on natural gas by making efficiency improvements,” he said. Nuclear energy factors heavily in this plan.
Mosbacher noted during the meeting that in addition to supporting oil and gas pipelines, the administration places importance on diversifying energy sources, with a particular emphasis on renewable energy, and is especially interested in investing in these projects when there is partial American ownership.
Responding to questions concerning helping Turkey and Europe reduce their dependence on Russian oil and gas, Kupfer said this has long been a priority of the US government and that now — in the aftermath of the Georgian crisis — its importance has been underlined. The Southern Corridor, a supply route which would carry Caspian gas to Europe, he said, is an essential part of this strategy.
Regarding the global economic crisis, Kupfer highlighted the fact that it would likely be increasingly difficult for governments and companies to borrow from commercial banks in order to secure needed funding, especially for long-term infrastructure projects. Through such actors as the US government, OPIC and the Export-Import Bank, Kupfer said, “we would all agree to share the risk of making loans and stepping into the void left by commercial banks’ retreat.” He added that his intention was not to crowd out private sector banks and that he’d rather they be the principal financers.
One obvious way to diversify routes would be relying on Iranian pipelines. Kupfer, nonetheless, reaffirmed America’s negative stance on this issue and deflected comments by Today’s Zaman that Armenia could be a reasonable transit route given the threats posed to pipelines running through Georgia that were exposed during the recent Russian invasion.
It was reported that the delegation had already had meetings with the Turkish prime minister and energy minister and has planned meetings with the foreign minister and the treasury minister. The Turkish government, Kupfer noted, is very supportive of the initiative.
source: Today’s Zaman
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