... its grip on its “
good friends
”, i.e. the major suppliers such as Equatorial Guinea who was also referred to as China’s “
best friend
” by the Chinese Foreign Minister during his visit in 2007.
Despite its attempt to secure ... ... the region is very limited for several reasons. Firstly, “current U.S. government policy on the procurement of African oil based on the National Energy Policy of 17 May 2001” has become outdated with the recent emergence of new gas producers such as Tanzania and Mozambique. In 2001, Africa was not yet a “pillar of global energy security
[5]
”,...
... and gas, they will not be able to export as much due to domestic needs, etc. As a result, Russia’s net exports will meet 4.2% of world’s energy demand in 2035, which will be sent to Europe (still world’s largest importer of natural gas) and China (world’s largest oil importer).
Oil production will be dominated by USA, Saudi Arabia and Russia, with well over a third of global liquids coming from these three powers. At a rate of 11 Mb/d by 2035 Russia will only trail Saudi Arabia and the US. BP anticipates that ...
... Russia’s energy pivot to Asia is a very timely and well-planned strategy.
1
. W.K. Lászlo Varró, A.S. Corbeau Developing a Natural Gas Trading Hubin Asia Obstacles and Opportunities, IEA Publications, 2012 p.24
2
. D.Dyomkin Russia grabs China oil and gas export deals, Financial Post, October 22, 2013
http://business.financialpost.com/2013/10/22/russia-grabs-china-oil-and-gas-export-deals/?__lsa=0a44-fef0
3
. Rosneft President and Chairman of the Management Board Address to The World Energy Congress ...
... survey the waters. In 2012 a peculiar action was taken by China to add the map of its territorial claims to Chinese passports; it is fair to say that other states were infuriated, particularly as the claim involves almost the entire sea and crucial oil/gas fields in the south, near Brunei (Financial Times, 2012). Major and even petty actions wane China’s charm offensive and at one stage may grant the US sufficient excuse to get involved, which China is most against. The Chinese Foreign Minister Yang Jiechi said at the ASEAN Forum in July 2010 that Beijing is unhappy about Washington 'internationalising' ...
... full capacity. If this shale boom does occur it may fracture the Sino-Russian trading potential, but this potential remains weak as many pricing issues still remain unresolved. If current approach to pricing persists, the competitiveness of Russian gas in China seems doubtful. When LUKoil released its report, Russian gas cost ~$100 more than Turkmens and it was only somewhat competitive in contrast to expensive LNG from Australia and possible future deals all the way from Qatar.
Russia In Search of New Fields – Where Hast Thou ...
... against their principles. This is why, distribution of economic capabilities in the near future will be vital as unless asymmetry is lessened, this relationship may not get very far, as asymmetry breeds conflict.
Counter-Agent Dilemma & Subsidized Gas/Oil to China:
The publicised and agreed energy deals with China are currently at the break-even point or just above it, which comparatively puts them on par with expensive Australian projects. If the market conditions do not worsen, these projects will recuperate ...
... 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 ... ... question and answer session is outlined with Dr. Tatiana Mitrova, whereas in the subsequent second post, coming later, we look at China-Russia.
Europe-Russia ‘Special Deal Severed’:
In normal day-to-day life Europe has a stable and diversified ...
... likely to stop looking West and instead go East – as soaring trade levels with China already foreshadow.
However, Russia remains a European power – part of... ... 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... ... disillusioned with Brussels and shifted attention to its Eurasian backyard and beyond.
Oil prices are part of the equation but by no means the main reason. Alternative projects...
..., more recently, things appear to have moved in a more positive manner as Rosneft and CNPC deal to increase supplies via ESPO have a higher reported price and the deals post Xi Jinping visit show that China is interested.
Uneasy Passengers – Gas:
China’s feat of securing Urals oil for half the market price and being a peculiar victor amid the taxation squabble in Vankor highlights its shrewdness. However, its constant desire to change the pricing formula and its outstanding oil debts, go into the territory of poor relations; ...
... $1.52 billion into US shale, with an aim to increase its global oil production to 200 million tonnes by 2015 - very ambitions (See: RT). China has also pushed to invest into natural gas-stations for transport vehicles in the USA, as by switching from oil to gas reduces pollution (See: ChinaEN). One wonders, if China this way wants to get closer to US shale technology, as one must point out that the US has been highly reclusive of it, not even allowing Chinese passport holders to its production sites. For the time being, Russia will ...
