Rapid economic growth in Mongolia resulted in a significant increase in the demand for fuel. The country is still totally reliant on petroleum imports of which over 90 percent are supplied by Russia. As petroleum products constitute 20 percent of Mongolia’s total imports, oil consumption growth has a significant impact on our foreign trade and economy. For instance, as of November 2012, foreign trade deficit reached USD 2.2 billion.

Thus, Economic Policy and Competitiveness Research Center (EPCRC) organized a workshop entitled “Mongolia`s Dependence on Foreign Oil: Ways to Eliminate It” in December 14, at the conference hall of the Kempinski Hotel. This event intended to bring together policymakers, scholars, and researchers as well as representatives from business sector working in the field on various projects to exchange their ideas. “Achieving energy independence is the main goal of every Mongolian person. Let`s together determine what needs to be done to produce fuel using domestic resources such as coal, crude oil, and shale” said the EPCRC`s director interim Ms. Lakshmi Boojoo.

“An oil refinery, regardless of size and capacity, could be economically beneficial” pointed out Dr.Prof. Bagmid Ts., a member of the Mongolian Society of Petroleum Engineers. On the other hand, Dr. Avid B. from the Mongolian Academy of Science said that we need to introduce Coal to Liquid technology, in order to properly use our abundant brown coal reserves. After that, Genie Oil and Gas Inc`s Mongolia Representative Office`s vise-president Mr. Gantsog Ts. made speech titled “Oil Shale: Mongolia`s Future Energy Supply”.

Mongolians should seek for opportunities in coal, oil as well as in shale and other possible sources, agreed workshop participants. Even though the private sector initiated to build an oil refinery and introduce coal to liquid technology, those ideas have not yet been implemented due to the state policy uncertainty, pointed researches. Therefore, Mongolia needs an independent and non-partisan policy to achieve energy independence and work towards implementing it regardless of what political party is ruling. “The biggest government support in terms of developing oil production industry would be the lesser government participation” experts pointed out.

The EPCRC is gathering all ideas and proposals from the workshop to make the policy recommendations for the government. According to the results of the survey, conducted during the event, most participants think that this issue needs to be discussed and researched further. “We are ready to collaborate with the EPCRC” said Tseveenjav J., CEO of Mongolian Society of Petroleum Engineers.

Presentations of the workshop “Mongolia`s Dependence on Foreign Oil: Ways to Eliminate It” are available to download on the EPCRC’s website www.ecrc.mn.