The Minister of Energy Parviz Shahbazov made a speech at 26th International Caspian Oil & Gas Conference

The Minister of Energy Parviz Shahbazov made a speech at the 26^th International Caspian Oil and Gas Conference. İn his speech the Minister noted that Caspian Oil and Gas exhibition-conference, which coincided with the beginning of the oil strategy of national leader Heydar Aliyev, has played an important role as the first event attracted world`s attention to the development of our oil industry in the new stage: “Azerbaijan tried to introduce its energy potential to the world by its exhibition-conference 26 years ago, but today it represents a mission of strategic partnership, international integration and energy security.” The Minister of Energy Parviz Shahbazov touched on the processes in the world energy market and spoke about the development of the country's energy sector according to new challenges. "There is instability in the oil market from the second half of 2014 to the present day," he said. There is still instability in the OPEC + format despite of flexible regulatory measures in the context of changing market conditions. According to him, the oil price, which is currently around $ 70, is satisfactory: “However, the maintenance of price stability and the demand and supply balance for both producers and consumers' interests make essential to take careful measures. Analysis of existing economic and political factors also shows that the main criterion for demand-supply equilibrium is a commercial criterion. So, oil reserves in the countries of the Organization of Economic Cooperation and Development are more than the average of the last five years. Countries beyond the organization including the United States, have left behind traditional oil producers with shale oil extraction indicators over recent years. Therefore, a lack of oil supplies and a high price fluctuation is not observed despite the agreement reached within OPEC + was fulfilled by 168% in April of this year, and the decline in production in a number of OPEC countries beyond the agreement, trading restrictions on the global oil market and geopolitical instability, " the Minister said.

The Minister of Energy  Parviz Shahbazov said that about 2 million barrels` decline in daily extraction could not compensate for the excess supply on the market: “Therefore, nowadays, the priority issue facing OPEC countries is to get the appropriate level in the commercial oil reserves. This is also important for insuring against the risks associated with global demand”.

The Minister also said that last year the global consumption of oil rose by 1.4%, but this year 1.2 million barrels` decline of daily demand per year is forecasted in the world: “Last year, energy demand in the world was at the highest levels in comparison with recent years, but the demand for energy in Europe has declined as a result of broad use of renewable energy and energy efficiency. By 2050, the share of oil and gas in total imports will drop from 55% to 20%.  Trade disputes between the United States and China also influence global economic development and are seen as a factor for decline in oil demand. All this shows that regulation through production is a major achievement for price stability in the market ".

The Minister said that $ 263 billion was invested in the country's economy over the past 23 years. $ 100.6 billion of this amount was directed to the oil sector. According to him with the approval of the $ 6 billion Azeri Central-East project, nearly 485 million tons of oil and 158 billion cubic meters of gas have been extracted and the second stage of exploitation of the Azeri-Chirag-Gunashli field, which was invested more than $ 36 billion, has begun.

The Minister of Energy also said that in the 21^st century appearing of gas as the energy source has increased the importance of issues such as diversification of sources and routes and energy security, and emphasized the importance of the “Southern Gas Corridor” project in this context. According to him work done on the “Southern Gas Corridor” project already yields its results. "TANAP has already transported 1.8 billion cubic meters of gas to Turkey. Gas extraction from the Shah Deniz field will increase by 6 billion cubic meters this year compared to 2018 and 8.5 billion cubic meters in 2020, so the total gas extraction in the country will exceed 40 billion cubic meters by 2020,” the Minister added. It should be noted that about 500 delegates from 30 countries are attending in the 2-days-conference.