IEA Ministerial Press Conference

Chairman’s Introductory Remarks Tuesday, 15 May 2007

Ladies and gentlemen, good afternoon.

With me on the platform is Mr. Claude Mandil, Executive Director of the IEA and Mr. John Ryan of Australia, Chairman of the IEA Governing Board.

Over the last two days the Ministers of the IEA have discussed the need to respond to the twin energy-related challenges we confront: – Ensuring secure, affordable energy for more of the world’s population – and – Managing the consequences of energy production and consumption in a sustainable manner.

There is broad consensus that these challenges represent the two main gaps in today’s energy world. No wonder then - that the title for our meeting is: Bridging the Gap.

It is clear from our discussions that the current energy outlook is unsustainable. But we remain optimists. It is possible to set a different path. We believe the world can achieve a clean, clever and competitive energy future. But to do so all nations must assume greater responsibility.

Energy Security
In terms of energy security, bridging the gap means awareness of our growing demand for energy. We need access to affordable, reliable energy in the short term as well as in coming decades. To avoid a gap, we must ensure future supplies through ample investment in the whole energy chain. In addition to OPEC’s use of spare capacity, we are prepared to respond to supply disruptions when necessary.

We have reconfirmed our commitment to collective actions, to offset any disruption in oil supply. We did it in 2005 in response to the supply shortfall caused by Hurricane Katrina, and will do it again if necessary.

We also examined lessons from recent disruptions in natural gas and electricity supplies. We welcome the dialogue with other major consumer countries, such as China and India, and we call on them to take steps to prepare for possible supply disruptions. Furthermore we urge producers to set conditions to attract adequate and timely investment.

Topic – Sustainable Energy
We also must “bridge the gap” to a sustainable energy future. We welcome the increase in energy consumption in many countries as China, India and others as it brings economic and social development and welfare to more people, but today’s energy production and consumption place a heavy burden on the environment.

IEA analysis shows that our current path will lead to much higher CO2 concentration in the atmosphere. However, we have the means to change our course, but we must act now.

Energy efficiency is an important first step, but must be followed by further development of alternative energy sources. Personally, I would like to emphasize that demonstration and deployment of promising technologies must be a priority. The most recent IPCC-report endorses carbon capture and storage as one of the new technologies that have a "potential to make an important contribution to mitigation."

Thank you. We are now open to take your questions.