27 November 2001

U.S. Energy Secretary Abraham Visits Russia

Greater energy security through more diverse oil supplies is a key element of President Bush's national energy policy, and the Caspian Pipeline Consortium -- which will add more than a million barrels of oil a day to the global market -- "is a clear example of that policy in action," U.S. Energy Secretary Spencer Abraham said in remarks prepared for the opening ceremony of the CPC facility in Novorossiysk, Russia, November 27.

Referring to the complexity of the project, he noted that eight companies from six countries "showed they could ... transcend the difficulties of the past and bring the world the energy it needs."

During his visit to Russia, Abraham will discuss how to enhance and accelerate efforts to safeguard nuclear materials. He will speak on the same subject to the International Atomic Energy Agency in Vienna on November 30, according to the following press release from the Department of Energy.

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U.S. Department of Energy Washington, D.C.

November 27, 2001

Press Release

Secretary Abraham Visits Russia; Meets With IAEA to Better Protect Nuclear Materials

Caspian Is First Privately-owned Pipeline Through Russia; Will Enhance World Energy Security

During his first visit to Russia, U.S. Secretary of Energy Spencer Abraham and a team of Energy Department officials represented the United States in events to highlight the completion and opening of the Caspian Pipeline Consortium (CPC) pipeline facility. The opening ceremonies were held in Novorossiysk, Russia. While in Russia Secretary Abraham will meet with the Minister of Atomic Energy Alexander Rumyanstev and other government officials to discuss accelerating and enhancing cooperative and international nonproliferation and materials security and accountability efforts.

"The opening of the Caspian Pipeline marks a new day in the long history of Russian-American relations; a day of progress and a day of hope," Secretary Abraham said. "Eight companies from six different countries showed they could work for a common goal, to transcend the difficulties of the past and bring the world the energy it needs."

"This pipeline will strengthen international energy security by adding more than a million barrels of oil a day to global supply, and by creating new jobs and billions of dollars in revenue," Secretary Abraham said. "Greater energy security through a more diverse supply of oil for global markets -- these are key elements of President Bush's National Energy Policy. The CPC pipeline is a clear example of that policy in action, in an international setting."

The CPC pipeline and related facilities are the largest joint investment to date in Russia, and required an investment of about $2.5 billion by eight companies -- including Chevron, Texaco and ExxonMobil. The pipeline enhances energy security by making available more crude oil from the Caspian Sea and enhancing diversification of energy supplies. It also provides a direct link from Kazakhstan's Tengiz oil field to the Black Sea and on to western markets. Cooperation was essential among the governments of Russia, Kazakhstan and Oman in order to achieve the goal of a completed pipeline.

As a follow up from an earlier meeting of Presidents Bush and Putin, Secretary Abraham will stop in Vienna to meet with International Atomic Energy Association (IAEA) Director General El-Baradei, and speak to the IAEA Board of Governors on Friday Nov. 30. In his remarks the Secretary will emphasize the importance of efforts to enhance the IAEA's role in strengthening international standards for the protection and accounting of nuclear materials.

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