... this post issues like energy weaponry (enormous logical fallacy in my opinion), market reforms, looming contract litigation, energy security, shale revolution and domestic challenges will be discussed. In this post I am joined by the Head of Oil and Gas at the Energy Research Institute of the Russian Academy of Sciences, Dr. Tatiana Mitrova. This is the first of two posts from this special series, so keep tuned, please feel free to comment and enjoy!
Personal Note:
My regular readers may have noticed ...
... system. More specifically, Moscow lacks a clear strategic direction, as the ruling regime is increasingly divided between an official commitment to economic modernisation, on 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 ...
... links gas to coal prices, which differ a lot, particularly when Russia aims to receive European type sums. Mareš and Laryš argue that China’s gas market is a questionable venture, as it is traditionally orientated towards coal with gas only account for 3% of the energy mix. China has begun to move towards natural gas only 10 years ago. It is estimated that the overall total will rise to around 10% by 2020, but with increasing competition and Beijing’s strategy of diversifying imports as much as possible,...
...
GAS: Post-Xi's visit developments suddenly picked up as it appears gas negotiations occured in the background outside public eye. Victor Zubkov, Chairman of Gazprom, issued a statement that a deal is due to be finalised in June (See: InterfaxEnergy). The gas deal is for 38 bcm of gas, which is less than 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....
... on the Pacific coast to export shale gas to Japan – where current gas prices stand at around $600 for 1000 cubic meters – that is much more than $400 paid by Europe ($500 paid by Ukraine). Further, in 2016 US should begin exporting shale gas to Europe. Traditional energy suppliers will need to keep a close eye on these developments and they may well be forced to soon drop prices for natural gas to make shale LNG imports less appealing – all will depend on the final price which may well be very low as US shale ...
... an interest there since 2006-2007 in an attempt to exploit Central Asia’s need to diversify its energy exports – have impacted upon Russia’s position. Moreover, the E.U. in particular wants access to Turkmen gas and Kazakh oil and gas, as a way to diversify its energy imports and rely less on Russia.
However, the Central Asian states will remain allies of Russia. The ties between the two regions are so close – one must remember that these states did not exist until the Soviet Union created them in the ...
... report link. Please Feel Free to Comment to Discuss!
The report is a co-effort by the Energy Research Institute of the Russian Academy of Sciences and the Russian Energy Agency. Also, I would like to particularly thank Tatiana Mitrova, Head of Oil and Gas Department at Energy Research Institute RAS, for presenting this report in 2012 at the HSE.
Report’s Online Link (Eng): www.eriras.ru/files/Outlook_2012_eng_light.pdf
Findings and Conclusions
- Demand Carousel turns towards the Developing States:
In ...
... sides can mutually benefit; the contract is a hybrid, as it is both long-term and incorporates hubs to determine pricing. But equally, the rest of Europe must value Russia’s interests in this interdependent bond as no one else can offer as much gas. E.U. must aid predictability by outlining an energy policy and do so on mutual terms, especially with what pace 70-80% ratio mentioned earlier will fall. Also the legal action against Russia’s gas giant is unproductive as unlike North America – Soviet, Russian and European infrastructure ...
... already as geological spending increased from 4.2 billion rubles to 37.4 billion rubles (2000-2012), the next step many specialist argue for is to have a system where information can be shared or even energy sector civil society.
Revenkov, V. (Oil & Gas Institute of Energy & Finances): Shale Gas Revolution
In the world of energy trade which may seem slow and quite traditional, things in fact can alter swiftly with states or energy firms being like poker players; individual skill mainly rules the result, but at ...
