... Russian consulate general in Hong Kong Friday to protest the detention of its activists by Russia's authorities. Photo: AP RD: What is more reasonable today - to focus on environmental challenges and to work on environmental projects or to invest into energy projects in the Arctic? A.Z.: Everything here is important because everything is very much interlinked. The Arctic ecosystems have been very much under shock over the past decades because of the climate change which affects both ecosystems and ...
... cannot do so all over. The Strait of Hormuz will just take the place as the next dilemma. Joseph Braml of the German Council on Foreign Relations said the basis why USA’s 5th fleet is staying in the Middle East (even though oil shale may make USA independent from the area) is because it allows the Chinese energy tap to be shut off if needed (Spiegel, 2013). So in all China will need to play its pieces in advance, but some moves may well be forced upon it.
In the discussion above we have focused predominantly on the great powers play, but lesser powers ...
... forward, but effectiveness will be in the small print and in action.
A major problem is that other nations hold the vaccine to this problem, but it is not in the interests of the US to change the system. If we look at the recent GDP statistics we see USA has recovered quicker than any other major economy. A lot will depend on how the new legislation holds in the US, like the Dodd-Frank Act. If we look at the statistics for manipulators, its frankly shocking. Cambridge Energy Research Associates (CERA) highlight that from 2008 there were no changes within expenses of exploration or production of BRENT crude. Based on 1st quarter of 2012, all the costs associated to produce a barrel of BRENT account for $53 per barrel ...
... level of the 1st generation of biofuels in transport from 10% to 5% total consumption (in fact, it has done so since the report was published, down to 5.5%; see link). In the largest biofuels producer the situation is far from merry, as strategically USA aimed to limit its reliance on Middle East via alternative energy, but shale has altered the game so much that it no longer needs it for security. At €0.84 per litter biofuel diesel is very expensive to produce, in contrast to standard diesel at €0.45. In all, oil will remain the main source of energy ...
... fact numerous times. Thus, the rational thing to do would be to reduce costs as much as possible to increase competitiveness of Russian gas and oil – for instance, the taxation system needs a lot of attention as it is a very heavy burden on the energy industry. The current tax burden of 73% per barrel is unlikely to increase, but it is very high, in contrast the USA's 44% out of each barrel sold. In the UK a dual system exist with a portion of tax going to old oil/gas wells to maintain their production levels which seems very rational and perhaps a case to look into, but vitally this cumulative tax rate ...
... cheap money. This, coupled with low interest rates across the whole eurozone, fuelled credit and real estate bubbles in the USA and Europe, which burst in 2008-9 amid the global ‘credit crunch’.
At first, this led to a pan-European banking ... ... 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 ...
... companies and academics nevertheless did not abandon the possibility that it could become a reliable partner for South Korea gas needs. Perhaps, in the perfect world, where the last delegate to DPRK is not Denis Rodman and it does not want to destroy USA, both South and North could cooperate in all fields, including energy matters.
At a junction – ES-2030:
ES-2030 follows a tradition of Russia’s psychological affection to large scale projects with political elites at the helm. It offers opportunities, but Russia must place its interests first ...
... positive sign is that Fitch Rating Agency does not expect US shale to impact Asian markets in the medium-term which is good for Russia and that domestic reforms currently in motion in China will also not alter the playing surface. Russia needs to secure energy contracts, but it seems time is still there (See: ShanghaiDaily). Interestingly, even with spectacular growth rates of shale production in the USA, its has had relatively small indirect impact on global prices - as many anticipated. For instance, it has not helped Japan, as the fledgling economy has seen prices explode by 77% since January 2011, with a total of 7% of GDP going to import of energy ...
... leading gas producers in the whole world, although that is a very high target.
Characteristics of US Market:
First crucial reason for Shale Revolution occurring in the US, and arguably as many observers believe it will only be successful there, is USA’s relatively open and liberal market. Chesapeake Energy, which is now one of the leaders in shale gas production, was launched with just $50,000 by its founders Aubrey McClendon and Tom Ward; it now makes $11.6 billion profit and hires 7,600 staff. One guesses The New Times has made a big omission here,...
... the Fukushima Disaster. It will have a serious impact on the already tentative Japanese economy, especially as it has no own energy reserves, making it a premium market for all exporters.
- Shale Gas Revolution:
The US ‘shale gas revolution’ ... ... substantial net-importer of gas into almost a self-sustainable entity, with a net-equal position between its imports and exports. USA even had to convert its now useless LNG terminals (which it first built at a massive cost to assure gas supplies in early ...
