... 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... ... 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... ... 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...
... 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 ...
... 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 and Gas at the Energy Research Institute of the Russian Academy of Sciences, Dr. Tatiana Mitrova. We discuss: sinicisation, geopolitical mistrust, energy deals, the Central Asian Ace & more! Please, feel free to comment & enjoy!
Personal Note:
This ...
... 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 between USA and GB, involving British Gas. However, most contracts were ended on mutual consent – which was done essentially... ... 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...
... 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 ...
... 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 ... ... 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 ...
... 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. Russia hoped to supply both markets with its European gas fields, thus making 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 the deal due to the lack of a solid price and as talks with China (depending on where one starts) stretch 45 years - making ...
... 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 their transportation of energy away from Russia, because ...
... blend of speculation and erratic weather could create a dangerous cocktail with severe gas shortages. In the established US market similar scenario occurred in 2001 as prices... ... and supply spiralled due to shortages resulting in extortionate consumer rates. With long-term contracts such seasonal, speculative and erratic events are less likely.
... ... A recent contract among Russia and Germany which will bear 6% of the latter’s energy needs, shows evolution of the former’s business approach and the fact that...
... 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... ... 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 Eastern Expansion Project needs particular attention; for instance in respect to gas, China opposes paying over $290 per 1000 cubic meters, which is $110 cheaper per...
