As Ministers and officials of the energy producing and consuming countries are gathering to meet in historical city of Rome for 11th International Energy forum, they can look back with some sense of satisfaction to achievements of the dialogue among themselves to tackle the numerous challenges in the international energy arena in the relatively short history of this process.

As a founding member of OPEC and one of the pioneers in oil production which will mark its 100th year as an oil producer this June, Iran has always promoted dialogue with other producers and consumers, since we believe that the challenges in this area are so complex, no single group can claim to have solutions for them on its own. In this connection, we took practical steps in the early 1990s to invite major consumers and producers for a meeting in the historical city of Isfahan. The success of this initiative prompted participants to institutionalize the dialogue in following years.

The challenges our industry has had to face in recent years has become even more complex, making co-operation among all parties involved vital for the smooth functioning of energy markets. I hope this forum will be successful in bringing closer the viewpoints of producers and consumers of energy to ensure the long term stability of international energy markets.

· It is our strong belief that the energy industry is an industry of peace and requires political stability for unhindered flow of investment which is a pre-condition for security of energy supply.

· Some consumers attempt at channeling funds for alternative energy sources without due consideration to their economic viability. The resulting inventory stockpiling will heighten the concerns of producers about surplus capacity expansion.

· Investments in cleaner fossil fuels by developed consuming countries which possess financial resources and technological capabilities will not only address environmental concerns but also help the issue of security of supply and demand.

· The fact that current oil price levels have little to do with market fundamentals and are more responsive to issues such as US dollar weakness as well as political and geopolitical concerns, for the sake of market stability, the function of speculators in the paper markets needs to be addressed.

· The gas sector which is much more capital intensive, and natural gas which is the fuel of choice for its environmentalfriendliness, require greater support and encouragement from producers, consumers and the industry. All attempts must be directed to develop the required technology and financial resources.

· Co-operation in energy conservation and utilization in producing countries together with gradual elimination of subsidies will be a major step towards ensuring access to energy supplies. Both producers and consumers should implement policies supportive to this end.

· The transfer of alternative energy technologies, especially nuclear energy and clean fossil fuels, which are being pursued by major consumers, is the legitimate right of all consumers. Although Iran is a major and reliable energy exporter, because of its young population, it has no choice but to utilize all accessible forms of energy including nuclear energy. Our approach to this issue is also non-political.