... circumvented. Still, when Li & Cheng wrote their work, trade with Russia was slow, but recently non-equity investments have occurred. So, if China continues to alter its pose it may well engage Russia as it is the most appealing long-term supplier. Russia holds huge oil/gas reserves, which are geographically close as it takes just 3-5 days for East Siberian oil to flow to China, in contrast to two/three weeks from the Middle East (Voice of Russia, 2012), and also as an added bonus US or NATO cannot defy Russian and Indian ...
... in the more than likely future recession. As we know, the problem lies in the fact that petrodollars derived by OPEC and now Russia cannot be easily spend by the actual producers, as their economies are not well developed to use the vast inflows of liquidity ... ... relatively recently let in another industry into the global casino with little gambling limits and about to invite its friend (gas).
P.S. while writing this post I was considering doing a mirror post for oil's alternative, natural gas, ...
... 2004, the Kremlin began to use its gas supplies to Europe as a political weapon against the new leadership of Ukraine. This policy eventually led to two major energy crises, also called the “gas wars,” in 2006 and 2009, when the flow of Russian gas via Ukraine was halted, resulting in gas outages across southeastern and eastern Europe. In the main, Russia’s coercive tactics against the Yushchenko government yielded some results: the Orange Revolution’s momentum subsided, and Viktor ...
... China to 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 ...
... will come from many different suppliers with no clear player and it will be based on market tendencies. My dialogue with Mitrova took place before the recent announcements that a gas deal was reached with China, but peculiarly no price was set for the Russia gas. In effect, the deal could still collapse, or not materialise if this summer's worth of negotiations does not go through. Nevertheless, Mitrova argued that we ought to see some sort of a gas deal between Russia and China in the next two years,...
... competition is already heated, but in reality this competition is likely to be more indirect, especially in Europe as LNG that was originally aimed at US will possibly end up there.
Before the shale revolution European spot prices were higher than Russian pipeline gas, but this game changing event resulted in a collapse of spot prices as relatively suddenly an excess of 40 bcm of LNG appeared. As a result this pushed for a change of pricing mechanisms in Europe, alongside the reasons of recession and bankruptcies,...
... 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 ...
... 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 relations ...
... socialist leaning countries percentage wise (See: WashingtonPost).
Blockbuster Section:
- RITEK VIDEO (Russian Innovation Technological Energy Company): I was originally introduced to this exciting company by Gennady Schmal, President of Union of Oil & Gas Producers of Russia. This is a flagship company, parent company LUKoil, that focuses on innovation in Russia. Its exciting because it has made substantial progress in recent years in innovation and companies like this, are and will be at the forefront of innovation ...
... act quickly in increasing efficiency: so costs could be reduced to make their products competitive. As experts at VNIIGAZ argue, an institute for natural gas, large scale shale production in Russia does not make economic sense before around 2025-2030. Russia has plenty of natural gas, the most in the world, and realistically it does not need shale at least for now, but its traditional product must be competitive so it does not miss the gravy train which may well soon pick up speed.
Igor Ossipov
Oil & Gas Eurasia Correspondent,...
