Rusnak: Doors Open to Iran to Take Its Place in World - Shana
TEHRAN, June 6 (Shana) – Doors are now open for Iran to take the place it deserves in the world, the Secretary General of the Energy Charter Secretariat, Urban Rusnak, said on Wednesday.
He made the remarks in an exclusive interview with Shana.
"I expect that Iran takes the place it deserves; Iran was out of the international community for so many years," Rusnak said.
He added that all doors are now open to Iran because of the more pragmatic approach the world has towards the Islamic Republic.
“Iran’s voice was not heard before, but now the situation has changed and you can utilize your power, oil and gas exports,” he noted.
Dr Rusnak said that Iran has low oil and gas production costs and, therefore, it has a strong position in the oil and gas market in comparison to its Persian Gulf rivals.
**International Energy Charter Re-Invites Iran
The official referred to the history of Iran’s ties with the Energy Charter and said that Iran was invited to become an observer to the Energy Charter Conference in 2002.
In 2012 the Energy Charter Conference decided to renegotiate the European Energy Charter Declaration and invited Iran to take part in the negotiations, which they did, he added.
The Secretary General added that, in May 2015, the new International Energy Charter (IEC) was adopted and Iran was among the countries which adopted it.
"For administrative reasons, Iran has not yet signed the IEC. Now we have re-invited the Islamic Republic to finish this unfinished business and to sign something that we have negotiated two years ago," he said.
Dr Rusnak underlined that "We have been assured by the Deputy Petroleum Minister that the administrative process has been started, and we hope that Iran will sign the International Energy Charter soon.”
If Iran signs the IEC, it will become a full observer to the Energy Charter and will have some rights, he underscored.
The energy expert added that Iran will have the right to participate in negotiations on future agreements, and it will have the right to get technical assistance in different areas such as investment promotion, dispute resolution, transit negotiations, energy efficiency and environmental aspects of energy cooperation or trade.
The Secretary General added that Iran has been very active during the negotiations for the International Energy Charter, and had a strong role in support of energy producing countries.
Shana interviews Dr. Urban Rusnak (photo credit: Shana)
**The International Energy Charter supports all sides
He noted that the Energy Charter is an organization which is working on a more balanced approach to energy security.
The International Energy Charter takes into account not only the security of demand but also the security of supply and transportation, Dr Rusnak said. He underlined that energy security, for the Energy Charter, means the security of demand, supply, transit and the absence of energy poverty.
Thinking that the Energy Charter supports only the demand side is a misperception because the Energy Charter was created by energy producing countries such as the UK, Norway, Russia, the US and others. 25 years ago, when the Treaty was born, all of these countries were energy producers but some of them have since become energy consumers, Dr Rusnak noted.
He said that Azerbaijan, Turkmenistan and Kazakhstan were energy importers when they became members of the Energy Charter, but now are energy exporters due to reforms, developments, and other changes.
It is not true that the Energy Charter stands only for the interest of consumers, the official added.
He noted that today the global situation has developed so that most of the Charter’s countries are energy consumers, but that the Charter is trying to balance the interests of all sides, particularly regarding supply and transit.
Dr Rusnak underlined that his organization is negotiating with all OPEC members, including Iran and Nigeria, to develop closer cooperation with the Energy Charter.
Explaining what the Energy Charter does, he said that the framework is akin to traffic rules: not in favor of pedestrians, big trucks or small cars exclusively, but supportive of all of them.
The Energy Charter wants to modernize with the help of members and invited observers, the Secretary General added.
He noted that the International Energy Charter declaration does not bind countries and does not interfere in a country's energy policies, but signing it shows care for an international framework.
**Low oil prices are not beneficial to anybody in the long term
This high profile energy expert said that the low oil price is not only a problem for energy producing countries but, despite its initial advantages for energy consumers, is not beneficial to anybody in the long term.
We are neutral regarding oil prices, the Secretary General said.
He noted that "We should not focus on short term problems, but instead on much bigger challenges which Iran and both energy consumers and producers may face in the future.”
**The 21st century, the century of renewable energies
The challenge is that the world is in the first stage of the transition from oil and gas to renewable energies. This is caused by two things, one is new technologies that change demand, and the other is supply side technologies, like fracking, that have become economical, the official added.
He pointed to technological changes in the way of storing and using energy, and said that if electrical batteries take the place of petroleum for transportation and vehicles, significant effects will happen to energy producing countries like Iran.
Dr Rusnak underlined that being part of the Energy Charter will provide Iran with an international network to become aware of technological changes.
**Low cost of oil production in Iran, a big advantage
The Secretary General also said that the lower cost of oil production in Iran is an advantage for investment in the country’s oil and gas projects, but that investors expect better conditions that are attractive enough.
He referred to the many MoUs signed between Iran and its foreign partners, adding that the situation will become more realistic soon and that it takes time to get results from negotiations between Iran and foreign investors.
Many oil and gas customers seek to use renewable energies, and technological changes will shake the world of energy in the near future, the expert added.
Dr Rusnak said that the 20th century was the century of oil and gas, but that the 21st century will be the century of renewable energies.
"Alternative energies that rival oil and gas will come, but we can not predict when, whether it is five years or two decades ahead," he added.
The official said that the question of what kind of alternatives will win the rivalry with oil and gas, and which country will adopt itself to new technologies faster than others, are key to the progress and prosperity of nations in the energy framework of the future.
Interview by Hamdollah Emadi Heydari