... 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 ... ... 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 ...
... 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 from commercial activities. This will create a single trading hub as LUKoil points out for the entire area and as policymakers hope, eliminate major differences in prices, but as my older posts ...
... contrast to the economically and politically stagnating West. However, for Russia, this re-emergence plays an exceptional role which stirs much uncertainty and mistrust, as once this giant wipes of the rheum around its eyes and springs back full of energy, 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 ...
... of Anglo-Saxon model so the positions are different in comparison to the EU. Situation there ended in a cancellation of the long-term contracts, but compensation was paid out to the suppliers – contracts were torn with Libya, Algeria and LNG supplies ... ... pressure.
It is difficult to say whether this is possible in mainland Europe, as back then USA and GB were self-sufficient in energy so these contracts were not vital. However in Europe, we are talking about a region that will be increasing its energy ...
... 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 ...
... perhaps one of the biggest challenges in the upcoming decade as its economy is overly dependent upon natural wealth, but our main European market is quickly becoming less accessible raising the question: where to go? Aside, long-term diversification from energy export dependence, Russia has a relatively shorter-term option: to expand into Asia, but this option is far from easy and requires tricky manoeuvres.
Personal Note: I should have uploaded this particular post on RIAC from the start to make ...
... 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. Russia hoped to supply ... ... 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 ...
... particular Kazakhstan – with around 34% of the 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 ...
... prices for European consumers. But, recently Europe has shifted from shrewd trade to the reengineering of the energy 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 ...
... await.
Krutikhin, M. (Partner, RusEnergy): The Price is Right?
As stated by M. Krutikhin, in the foreseeable future the energy sector will experience price turbulence. In regards to oil, official forecasts estimate that global output will stabilize ... ... 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 ...
