... ideas. In this post, I will be using some of the standpoints highlighted at this year’s IMEMO RAN event; the “Oil & Gas Dialogue” (26/04/13). As usual, I will offer additional links to expand our discussion. It is almost a cliché,... ... formulated by a cost-plus system for crude and now net-back for other petroleum products. Again, the seven sisters preferred long-term contracts and also used modern concessional tools to account for socio-economic factors. But, in 1969 to 1973 a major ...
... LUKoil sees that for Russia this is not good news as it is yet to complete any big gas deals with China, while its traditional European market is forecasted to persist in being difficult. Although European production will actually decline and imported gas will increase, the competition is expected to heat up a lot after 2015 as more potential suppliers enter the market (e.g. Qatar). By 2020 the market will need an extra 50 bcm on top of the existing contracts as certain long-term contracts end, but supply will increase by 250 bcm in essence flooding the market and leading to old contracts to be renegotiated more robustly. Lastly, Europe’s notorious Third Energy Package is set to split gas transmission and storage ...
... its only natural room to manoeuvre seems northwards. Even if the world does not tremble, Russia fears that at the least Eurasia will shake. As promised, this is the second post in this special series and once again I am joined by the Head of Oil and Gas at the Energy Research Institute of the Russian Academy of Sciences, Dr. Tatiana Mitrova. We discuss: sinicisation, geopolitical mistrust, energy deals, the Central Asian Ace & more! Please, feel free to comment & enjoy!
Personal Note:
This ...
... shift gas via many different routes. Simply having the same price across the board is absurd or trying to push some revolutionary policies that do not reflect market peculiarities. The market must be given time to evolve naturally.
Giant-Shtokman Gas Field - Will be Idle:
As Europe is proving to be a difficult market for Russia due to price liberalization, long-term contracts decline and oil-pegged prices rejection, the Shtokman field was postponed and its development was rejected, perhaps, for the next 10 years. Also, as the US market is quickly becoming self-sustainable due to the Shale Revolution, the ...
... the one hand, and authoritarian consolidation, on the other hand.
Energy Calamity
It is argued by some that the Russo-European relationship has soured creating an anti-Russian stance. Has this occurred due to European attempts to lower gas import prices, or more serious underlining issues? Europe’s potential alternative pipeline has even been called “Nabucco” – does Europe really feel enslaved by the Russia energy dependence in a Verdian sense?
For far too ...
... last posts with direct links to all the sources, for easy access, as this is a blog and it doesn't require academic rigour. Please see the following link for the Energy Policy journal article on which this post builds upon: "Oil & Natural Gas in Russia's Eastern Energy Strategy: Dream or Reality. Also, please feel free to comment or leave a like, its always more productive to engage in a discussion!
Route 2030: Dream or Reality?
The rising politicization of Euro-Russian energy ...
... anticipated 68 bcm and vitally price was not set, which is obviously a serious concern (See: InterFax Energy). Additionally, Russia was unable to play-off Europe against China, due to the latters pressure. Russia hoped to supply both markets with its European gas fields, thus making its customers compete against each other (See: Reuters). However, on the brightside Gazprom agreed with China in regards to long-term contracts, thus allowing it to develop the riskier fields as export was more guaranteed. At first, I was sceptical about the deal due to the lack of a solid price and as talks with China (depending on where one starts) stretch 45 years - making ...
... overall population claiming to be Russian, which is quite a high figure. So the Russian population in Central Asia is the key political interest of Russia, with the other interest being of course energy. The integrated transportation system for oil and gas, which existed since the Soviet period, still mainly runs through Russia and it is very keen on maintaining this system. In regards to the Central Asian interests, most states wish to diversify their transportation of energy away from Russia, because ...
... sector, which does not account for industry realities or Russian and peculiarly even its own interests as it is undermining its own energy security.
Long-Term Contracts a No-No:
An area of contention stimulating uncertainty is the debate amid long-term contracts and hub trading which is set to be introduced across Europe. An official justification is that Europe feels that gas is overpriced and super-natural profits are recorded by the Russian gas monopoly. At IMEMO RAN Sergei Komlev, Gazprom Export Head of Department for gas Contracts and Pricing, “rebuffs the overpricing myth” by arguing that raw materials ...
... aiming to agree 10 year long contracts with the Middle East, aside from this being a double-standard as it tends to avoid Russian long-term contracts by saying short-term hub trading without a fixed price is the future, the issue remains that this is not a ... ... billion for the whole sector. Krutikhin says the Eastern Expansion Project needs particular attention; for instance in respect to gas, China opposes paying over $290 per 1000 cubic meters, which is $110 cheaper per measure in contrast to the European consumers,...
