Presentation of the World Energy Outlook 2011

Toespraak | 10-11-2011

Maria, Dr Birol, ladies and gentlemen,

My staff warned me that Ministers of Economic Affairs usually get bitten by the energy bug. It was certainly true for you, Maria! It’s good to welcome you back to The Hague in your new capacity. I could not attend your first ministerial meeting as the head of the International Energy Agency. So I am all the more pleased to be here to receive this report from you today!

It is telling that the major non-OECD countries attended your first ministerial meeting. We are witnessing a growing role for major emerging economies, from China, India and Russia to Brazil, Mexico, South Africa and Indonesia.

You rightly acknowledged these changing geopolitical realities when you were Minister of Economic Affairs, and you are doing so again now. So is the present Dutch government. We are stepping up our efforts in economic diplomacy in general, and energy diplomacy in particular; both at European and at bilateral level. This is crucial to enhancing security of supply in an interdependent world.

The Energy Outlook never fails to present us with an incisive analysis of developments in the world of energy. And it always gives us food for thought. When I look at the Netherlands as reflected in the World Economic Outlook, I see huge challenges. And tremendous opportunities. Business opportunities for our energy economy. In particular in the field of gas and sustainable energy.

Let me start with gas. We have been a large gas producer and consumer ever since the discovery of the gas field at Slochteren, back in 1959. That field is still far from depleted. We expect record gas revenues next year. Yet our gas production will start declining in the years to come.

This is why we have been making the transition from a purely gas-producing country to a gas-trading country as well. It’s the gas hub strategy that you launched, Maria. We used to deliver gas to people and businesses in and around the Netherlands; today, we are a strong player in the global gas market.

We have increased our capacity for trading, transporting and storing gas. Her Majesty the Queen recently opened the new Gate Terminal in Rotterdam, where the world’s largest LNG ships can dock. It is but one example of our new position as the ‘gas hub’ of northwest Europe and a player in the global gas market.

This allows us to play an important role in the transition towards a sustainable energy system as well. Gas is the cleanest of all fossil fuels. We can reduce carbon emissions by increasing the share of gas in the energy mix.

Many countries are doing so already, as your report shows. So gas is here to stay for the foreseeable future. In my view, gas is both a transition and a destination fuel. This makes me all the more convinced that the Golden Age for Gas, which the IEA is predicting, can be a golden age for the Netherlands as well.

We are also steadily becoming an important producing and trading country for bio-energy and biomass. It is no coincidence that as of last week, biomass is being traded alongside gas and electricity at the energy exchange APX-ENDEX in Amsterdam. Bio-energy is important to the future of the Netherlands. Alongside wind, it provides a cost-efficient way to reach our goal of generating 14 per cent of energy from renewable sources by 2020 – a target we are already getting near to.

For the long-term, we will have to come up with new techniques to reduce carbon emissions and produce sustainable energy in a cost-efficient way. This is why I aim to strengthen the innovative capacity of the top sectors of our economy, including energy. Innovation is the way to a sustainable energy system.

Given the scale of the challenge, we cannot afford to rule out in advance any new or existing options. These include nuclear energy, shale gas, CCS and gas storage. Of course, we need to take decisions on the basis of all the facts. This is why we are carrying out stress tests of nuclear generators. This is why I have postponed shale gas test drilling, pending the results of further studies.

Yet we need to take an honest look at such techniques. Sometimes it seems there is resistance to any form of energy. From coal to wind. But we all want to maintain a decent standard of living. And we all want a low-carbon future.

I have opted for a steady increase in renewables. While keeping a sharp eye on the costs for people and businesses. All in the conviction that our economy can and should benefit from a greener energy sector. Of course, any policy needs a firm analytical basis. This new edition of the World Energy Outlook will certainly help.

Thank you, Maria, for this report. And I wish you every success with your tour, presenting the IEA’s insights around the globe.

Thank you.