The prepared remarks of President Barack Obama on economic and strategic relations between the U.S. and China.
Good morning. It’s an honor to welcome you to the first meeting of the Strategic and Economic Dialogue between the United States and China. This is an essential step forward in advancing a positive, constructive, and comprehensive relationship between our countries. I’m pleased that President Hu shares my commitment to a sustained dialogue to enhance our shared interests.
President Hu and I both felt that it was important to get our relationship off to a good start. Of course, as a new President and as a basketball fan, I have learned from the words of Yao Ming, who said – “No matter whether you are new or an old team member, you need time to adjust to one another.” Well, through the constructive meetings that we have already had, and through this dialogue, I am confident that we will meet Yao’s standard.
I want to acknowledge the remarkable American and Chinese leaders who will Co-Chair this effort. Hillary Clinton and Tim Geithner are two of my closest advisors, and they both have extraordinary experience working with China. I know that they will have extremely capable and committed Chinese counterparts in State Councilor Dai and Vice Premier Wang.
I also look forward to the confirmation of an outstanding U.S. Ambassador to China, Governor Jon Huntsman. Jon has deep experience living and working in Asia, and – unlike me – he speaks fluent Mandarin Chinese. He also happens to be a Republican who co-chaired Senator McCain’s campaign. I think that demonstrates Jon’s commitment to serving his country, and the broad, bipartisan support for positive and productive relations between the United States and China.
Today, we meet in a building that speaks to the history of the last century. It houses a national memorial to President Woodrow Wilson, a man who held office when the 20th century was still young, and America’s leadership in the world was emerging. It is named for Ronald Reagan, a man who came of age during two World Wars, and whose presidency helped usher in a new era of history. And it holds a piece of the Berlin Wall, a decades-long symbol of division that was finally torn down, unleashing a rising tide of globalization that continues to shape our world.
One hundred years ago – in the early days of the 20th century – it was clear that there were momentous choices to be made – choices about the borders of nations and the rights of human beings. But in Woodrow Wilson’s day, no one could have foreseen the arc of history that led to a wall coming down in Berlin, nor could they have imagined the conflict and upheaval that characterized the years in between. For people everywhere – from Boston to Beijing – the 20th century was a time of great progress, but that progress also came with a great price.
Today, we look out on the horizon of a new century. And as we launch this dialogue, it is important for us to reflect upon the questions that will shape the 21st century. Will growth be stalled by events like our current crisis, or will we cooperate to create balanced and sustainable growth, lifting more people out of poverty and creating a broader prosperity? Will the need for energy breed competition and climate change, or will we build partnerships to produce clean power and to protect our planet? Will nuclear weapons spread unchecked, or will we forge a new consensus to use this power for only peaceful purposes? Will extremists be able to stir conflict and division, or will we unite on behalf of our shared security? Will nations and peoples define themselves solely by their differences, or can we find the common ground necessary to meet our common challenges, and to respect the dignity of every human being?
We cannot predict with certainty what the future will bring, but we can be certain about the issues that will define our times. And we also know this: the relationship between the United States and China will shape the 21st century, which makes it as important as any bilateral relationship in the world. That reality must underpin our partnership. That is the responsibility we bear.
As we look to the future, we can learn from our past – for history shows us that both our nations benefit from engagement that is grounded in mutual interests and mutual respect. During my time in office, we will mark the 40th anniversary of President Nixon’s trip to China. At that time, the world was much different than it is today. America had fought three wars in East Asia in just thirty years, and the Cold War was in a stalemate. China’s economy was cut off from the world, and a huge percentage of the Chinese people lived in extreme poverty.
Back then, our dialogue was guided by a narrow focus on our shared rivalry with the Soviet Union. Today, we have a comprehensive relationship that reflects the deepening ties among our people. Our countries have now shared relations for longer than we were estranged. Our people interact in so many ways. And I believe that we are poised to make steady progress on some of the most important issues of our times.
My confidence is rooted in the fact that the United States and China share mutual interests. If we advance those interests through cooperation, our people will benefit, and the world will be better off – because our ability to partner with each other is a prerequisite for progress on many of the most pressing global challenges.
First, we can cooperate to advance our mutual interest in a lasting economic recovery. The current crisis has made it clear that the choices made within our borders reverberate across the global economy – and this is true not just of New York and Seattle, but Shanghai and Shenzhen as well. That is why we must remain committed to strong bilateral and multilateral coordination. And that is the example we have set by acting aggressively to restore growth, prevent a deeper recession and save jobs for our people.
Going forward, we can deepen this cooperation. We can promote financial stability through greater transparency and regulatory reform. We can pursue trade that is free and fair, and seek to conclude an ambitious and balanced Doha Round agreement. We can update international institutions so that growing economies like China play a greater role that matches their greater responsibility. And as Americans save more and Chinese are able to spend more, we can put growth on a more sustainable foundation - because just as China has benefited from substantial investment and profitable exports, China can also be an enormous market for American goods.
Second, we can cooperate to advance our mutual interest in a clean, secure, and prosperous energy future. The United States and China are the two largest consumers of energy in the world. We are also the two largest emitters of greenhouse gases in the world. Let’s be frank: neither of us profits from a growing dependence on foreign oil, nor can we spare our people from the ravages of climate change unless we cooperate. Common sense calls upon us to act.
Both of our countries are taking steps to transform our energy economies. Together we can chart a low carbon recovery; we can expand joint efforts at research and development to promote the clean and efficient use of energy; and we can work together to forge a global response at the Climate Change Conference in Copenhagen and beyond. And the best way to foster the innovation that can increase our security and prosperity is to keep our markets open to new ideas, new exchanges, and new sources of energy.
Third, we can cooperate to advance our mutual interests in stopping the spread of nuclear weapons. Make no mistake: the more nations acquire these weapons, the more likely it is that they will be used. Neither America nor China has an interest in a terrorist acquiring a bomb, or a nuclear arms race breaking out in East Asia. That is why we must continue our collaboration to achieve the denuclearization of the Korean peninsula, and make it clear to North Korea that the path to security and respect can be traveled if they meet their obligations. And that is why we must also be united in preventing Iran from acquiring a nuclear weapon, and urging the Islamic Republic to live up to its international obligations.
This is not about singling out any one nation – it is about the responsibility of all nations. Together, we must cooperate to secure all vulnerable nuclear materials around the world, which will be a focus of our Global Nuclear Summit next year. And together, we must strengthen the Nuclear Non-Proliferation Treaty by renewing its basic bargain: countries with nuclear weapons will move toward disarmament; countries without nuclear weapons will not acquire them; and all countries can access peaceful nuclear energy. A balance of terror cannot hold. In the 21st century, a strong and global regime is the only basis for security from the world’s deadliest weapons.
And fourth, we can cooperate to advance our mutual interests in confronting transnational threats. The most pressing dangers we face no longer come from competition among great powers – they come from extremists who murder innocents; from traffickers and pirates who pursue their own profit at the expense of others; from disease that knows no borders; and from suffering and civil wars that breed instability and terror. These are the threats of the 21st century. And that is why the pursuit of power among nations must no longer be seen as a zero-sum game. Progress – including security – must be shared.
Through increased ties between our militaries, we can diminish causes for dispute while providing a framework for cooperation. Through continued intelligence-sharing, we can disrupt terrorist plots and dismantle terrorist networks. Through early warning and coordination, we can check the spread of disease. And through determined diplomacy, we must meet our responsibility to seek the peaceful resolution of conflict – and that can begin with a renewed push to end the suffering in Darfur, and to promote a comprehensive peace in Sudan.
All of these issues are rooted in the fact that no one nation can meet the challenges of the 21st century on its own, nor effectively advance its interests in isolation. It is this fundamental truth that compels us to cooperate. I have no illusions that the United States and China will agree on every issue, nor choose to see the world in the same way. But that only makes dialogue more important – so that we can know each other better, and communicate our concerns with candor.
For instance, the United States respects the progress that China has made by lifting hundreds of millions of people out of poverty. Just as we respect China’s ancient culture and remarkable achievements, we also strongly believe that the religion and culture of all peoples must be respected and protected, and that all people should be free to speak their minds. That includes ethnic and religious minorities in China, as surely as it includes minorities within the United States.
Support for human rights and human dignity is ingrained in America. Our nation is made up of immigrants from every part of the world. We have protected our unity and struggled to perfect our union by extending basic rights to all our people. Those rights include the freedom to speak your mind; to worship your God; and to choose your leaders. These are not things that we seek to impose – this is who we are. It guides our openness to one another, and to the world.
China has its own distinct story that shapes its own worldview. And Americans know the richness of China’s history because it has helped to shape the world. We know the talent of the Chinese people because they have helped to shape America – my own cabinet contains two Chinese Americans. And we know that despite our differences, America is enriched through deeper ties with a country of 1.3 billion people that is at once ancient and dynamic – ties that can be forged through increased exchanges among our people, and constructive bilateral relations between our governments. That is how we will narrow our divisions.
Let’s be honest: we know that some are wary of the future. Some in China think that America will try to contain China’s ambitions; some in America think that there is something to fear in a rising China. I take a different view. I believe in a future where China is a strong, prosperous and successful member of the community of nations; a future when our nations are partners out of necessity, but also out of opportunity. This future is not fixed, but it is a destination that can be reached if we pursue a sustained dialogue like the one that you will commence today, and act on what we hear and what we learn.
Thousands of years ago, the great philosopher Mencius (men-shus) said: “A trail through the mountains, if used, becomes a path in a short time, but, if unused, becomes blocked by grass in an equally short time.” Our task is to forge a path to the future that we seek for our children – to prevent mistrust or the inevitable differences of the moment from allowing that trail to be blocked by grass; to always be mindful of the journey that we are undertaking together.
This Dialogue will help determine the ultimate destination of that journey. It represents a commitment to shape our young century through sustained cooperation, not confrontation. I look forward to carrying this effort forward through my first visit to China, where I hope to come to know better your leaders, your people, and your majestic country. Together, I am confident that we can move steadily in the direction of progress, and meet our responsibility to our people, and to the future that we will share. Thank you.
Mark, saw a bit on tv a couple of days ago .. thought then you'd be interested in it and .. lol .. the link here was..
Together, we can partner on behalf of our planet and prosperity and help countries increase access to power while skipping -- leapfrogging the dirtier phase of development. Think about it: Across Africa, there is bountiful wind and solar power; geothermal energy and biofuels.
Wrapping up Australia’s hot rocks EcoGeneration — May/June 2009
Geothermal energy has the potential to supply Australia with clean, base load power. With a number of new players in the Australian market, Lucy Rochlin reports on the projects underway and one company’s plan to provide geothermal power by the middle of the year.
Steam flow at Habenero 3. Photo courtesy of Geodynamics.
Hydrothermal and hot rock energy resources are tipped to be one of Australia’s most promising clean energy resources.
While conventional volcanic geothermal resources are not found in Australia, the country’s engineered geothermal system (EGS), or hot fractured rock systems (HFR), have attracted significant attention for their potential to supply clean, base load power.
The geothermal sector in Australia is growing rapidly with almost 400 geothermal tenements nationwide and around $850 million in work programs underway. Every Australian state has now put in place the required legislation or regulations to enable the industry to develop.
Australia has rich geothermal resources in the Cooper-Eromanga Basin in South Australia and Queensland, the Otway and Gippsland Basins in Victoria, and the Perth Basin in Western Australia. In New South Wales, the Hunter Valley has potential geothermal resources, while Tasmania also offers hot rock opportunities.
The growth in activity in the past few years led to the establishment of the Australian Geothermal Energy Group (AGEG)as a broad association of people and organisations involved in the industry. Companies working in the sector have also formed the Australian Geothermal Energy Association (AGEA) to represent their interests. The Geothermal Reporting Code, the world’s first uniform code to guide the public reporting of geothermal data, was released in August 2008 by the AGEG and AGEA.
In a further significant development, the Federal Government recently launched the Geothermal Drilling Program. Federal Government policies and initiatives have also been favourable to the geothermal industry, including a $50 million geothermal drilling program.
“Geothermal energy is predicted to be the lowest cost source of large scale, emissions free, base load power within the next two decades,” AGEA Chief Executive Susan Jeanes has said.
An independent report to the AGEA, conducted by McLennan Magasanik Associates found that the emerging geothermal industry can be expected to provide at least 1,000 megawatts (MW) and potentially up to 2,200 MW of base load capacity by 2020 into the National Electricity Market.
The report also predicts that the cost of generating electricity from geothermal resources is expected to move rapidly down the cost curve through to 2020, as a result of learning, experience and economies of scale outcomes. Estimates commence at approximately $120 per megawatt hour (MWh) at small scale (10–50 MW) and decrease to around $80/MWh at large scale (300 MW or greater) by 2020.
South Australia
The Cooper Basin
The Cooper Basin, which spreads over the northeast of South Australia and into southwest Queensland, is the most prolific geothermal region in Australia and is the source of the most advanced projects in the industry, including the Geodynamics’ Habanero project near Innamincka.
The Habanero project has recently achieved Proof of Concept following the completion of closed loop testing. According to independent analyst GeothermEx, the project has the ability to extract heat from hydraulically stimulated HFR to create power.
Geodynamics and its joint venture partner Origin Energy expect to be supplying electricity to the South Australian town of Innamincka by mid-2009. A commercial scale power plant is expected to be operational by 2012. See page 64 for an extensive review of current Geodynamics projects.
Elsewhere in the Cooper Basin, Green Rock Energy is conducting its Patchawarra Geothermal Energy project comprising three exploration licences that cover 1,438sqkm of land over the Patchawarra Trough in the Cooper Basin. Green Rock plans the future construction of a high voltage electrical transmission line linking the Cooper Basin to the national power grid.
Still in the Cooper Basin, Clean Energy Australia has secured 22 tenements covering a total area 11,000 sq km, with plans to develop integrated geothermal and solar thermal power. This is in addition to its eight tenements in the Great Artesian Basin, which are subject to Native Title.
Pacific Hydro is also exploring in this area, and holds 18 Geothermal Exploration Licences (GELs) covering 9,000 sq km in the Cooper Basin. Temperature logging in existing water bores confirmed thermal gradients of 50°C per km, with an indicative resource temperature of about 133°C at a depth of 2 km.
South Australian central
In central South Australia, Green Rock Energy aims to develop a 400 megawatt electric (MWe) power plant for its Olympic Dam Geothermal Energy Project. The company expects to drill two wells in the area surrounding BHP Billiton’s Olympic Dam copper and uranium mine in 2009. Inferred resources of 120,000 petajoules (PJ) of heat in place have been estimated for a 420 sq km section of the 2,899 sq km licence area.
Another geothermal exploration company, Torrens Energy, is currently undertaking an exploration heat flow drilling program in its South Australian tenements. Testing will initially be conducted at the Adelaide Plains Project, approximately 75 km north of Adelaide, and then move north to the Port Augusta Project once governmental approvals are in place. The drilling program is expected to run through to April 2009.
Further north
Heading north, Petratherm is conducting drilling programs at its Paralana and Callabonna tenements in the Arrowrie Basin, and together with joint venture partners TRUenergy and Beach Petroleum, will drill two new deep wells to confirm the expected thermal resource, undertake circulation tests and establish an underground heat exchanger at Paralana. Drilling is expected to commence in the middle of June following final certification of Weatherford Drilling International’s 2000HP Le Tourneau 828 ‘Lightning Rig’.
Petratherm is also undergoing exploration and development activity in the nearby Mount Painter region, as well as in its Stuart Shelf and Ferguson Hill tenements in the Olympic Dam area. Close by, Eden Energy has secured licences to undertake exploration projects at Witchelina, Renmark, Moomba North, Bollards Lagoon and Mungeranie.
Meanwhile, drilling work completed by Geothermal Resources’ Frome Project, located in the Frome basin region of northeast South Australia, has recorded high temperature gradients, including a bottom of hole temperature of 93.5°C recorded for Frome 12. Frome 13, a second 1,800metre deep hole, located approximately 26 km north northeast of Frome 12, is currently underway. The company is also looking to develop several GELs located on the northern margin of the Otway Basin in the southeast of South Australia.
Moving south towards the Victorian border, Panax Geothermal has identified three target areas in its South Australian Limestone Coast Project: the Rivoli Trough, the Tantanoola Trough and the Rrendelsham Trough. It is estimated that temperatures of 170°C or higher will occur at depths of 3,300 metres to 3,700 metres. The company is now defining locations for deep well tests; securing a rig for drilling a deep geothermal test well; and searching for a joint venture partner.
Victoria
Exploration of Victoria’s geothermal energy resources is still emerging, though there is a growing awareness of their potential value. The state’s geothermal exploration activity is centred on the Otway Basin, which spills over the South Australian border, and the Gippsland Basin.
In the Otway Basin, Green Earth has found significant HFR and Hot Sedimentary Aquifer potential in its Geothermal Exploration Permit 10, southwest of Geelong, and expects to commence drilling there this year. The resource is split between 40,000 PJ in HSA and 220,000 PJ in Basement Engineered Geothermal System (HFR). The presence of dual geothermal resources will create the opportunity for HSA to be targeted in the short term and EGS geothermal prospects to be targeted in the longer term.
The company has also conducted heat flow mapping in its two Gippsland Basin licences (GEP 12 and 13) to calculate an inferred geothermal resource of 3,600 PJ. This estimate is based on a HSA geothermal system, and is confined to approximately a 28sq km area, which is the area of the Wombat 3D seismic survey conducted early in 2008.
Meanwhile, Hot Rock Ltd has completed a Proof of Concept program consisting of drilling and testing two production appraisal wells into the Koroit HAS reservoir in the Otway Basin. The company is currently in discussion with electricity generation and retail companies on a joint venture power development for the Koroit Project.
Western Australia
While studies have predicted significant geothermal potential in the Canning, Carnarvon and Perth Basins in Western Australia, the first exploration licences were not released until 2008.
Green Rock Energy has applied for a number of GEPs in the Collie and Perth Basins, with the intention of commencing a drilling program in late 2009. The company hopes that a commercial geothermal powered heating and air-conditioning unit will be commissioned in 2011.
Tasmania
KUTh Energy’s drilling of its shallow heat flow program in eastern Tasmania is complete, and the company is now looking to increase its permit area. Other companies involved in exploration of geothermal resources in Tasmania include Geopower, which has application to explore an area covering 4,892sq km, and Geothermal Energy Tasmania, which has three licenses covering 8,495 sq km.
Powering up Australia’s hot rocks
Geoscience Australia has estimated that if we were able to extract just one per cent of Australia’s geothermal energy, it would be equivalent to 26,000 times Australia’s total annual energy consumption.
The challenge for Australia, as has been noted by the peak industry bodies, state and federal government and the entire ensemble of exploration companies involved in the geothermal industry, will be to develop the technologies, infrastructure and frameworks that will allow viable delivery to the market.
Birdsville powers ahead Currently, the only geothermal energy being generated is from Birdsville in Queensland, where a 120 kilowatt (kW) demonstration plant has been operating using 98°C groundwater from the town bore since 1999. Ergon Energy is currently conducting a feasibility study into whether it can provide Birdsville’s entire power requirements, allowing existing LPG and diesel-fuelled generators to be used only as a back-up to meet peaks in electricity demand.
Direct use of geothermal Direct use of geothermal waters is used as a source of energy in the city of Portland in western Victoria. Municipal buildings and public facilities are heated using water pumped from a 1,400 metre deep bore at a temperature of 58°C at rates of approximately 60 litres per second with a nominal capacity of 3,600 kW.
Petratherm and our joint venture partners Beach Petroleum and TRUenergy Geothermal are pleased to announce that drilling has begun this morning at the Paralana Geothermal Project site.
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