... 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 stress there are serious problems for certain suppliers in financially breaking-even with such setup.
Hot Subzero LNG
Over ...
... 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,... ... of the leading Russian experts on energy matters, Dr. Tatiana Mitrova. To view the first part of this series focusing on the European-Russian relations, click the following link: European Energy Woes. Moreover, for those that follow my blog, as promised ...
... routes. Simply having the same price across the board is absurd or trying to push some revolutionary policies that do not reflect market peculiarities. The market must be given time to evolve naturally.
Giant-Shtokman Gas Field - Will be Idle:
As Europe is proving to be a difficult market for Russia due to price liberalization, long-term contracts decline and oil-pegged prices rejection, the Shtokman field was postponed and its development was rejected, perhaps, for the next 10 years. Also, as the US market is quickly becoming self-sustainable due to the Shale Revolution, the Shtokman gas can no longer be ...
... Institut d’Etudes Politiques de Lille (Sciences Po). His research concerns capitalism, religion, ethics, civil economy, European Union and wider Europe like Russia, Ukraine and Turkey. He is an Associate Editor of the journal TELOS and Fellow of ... ... for this crisis? Perhaps, is it a virtue of the capitalist system, its agents, or other factors?
The continuous eurozone turmoil provides a microcosm for the wider global economy. It has variously been described as a financial or a fiscal crisis, caused ...
... 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 ... ... 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 ...
... 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 Russian giant (2nd biggest after the Kremlin) (See: MoscowTimes).
Rosneft has now become the world's biggest oil company by surpassing Exxon Mobil, but only time will tell if the TNK-BP deal will benefit Russia. I doubt BP's seats ...
... Between Formal and Informal Politics (2011, Routledge) and has published numerous articles in journals such as Democratization, Europe-Asia Studies, Electoral Studies and Studies in Ethnicity and Nationalism. Rico has undertaken media work commenting on ... ... 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....
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That said, Europe still does not agree, wishing to fit a North American Model where long-term contracts are near absent as purely basic economic principles of supply and... ... demand determine price. This is not yet possible due to a lack of infrastructure across Europe, especially costly storage, as gas is seasonal requiring storage during summer... ... just shutdown. So, currently a hybrid system exists with spot pricing, fixed gas to oil pricing and with hubs which only work after 70-80% of the market is satisfied by...
... foreseeable future the energy sector will experience price turbulence. In regards to oil, official forecasts estimate that global output will stabilize as demand increases;... ... 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... ... over $290 per 1000 cubic meters, which is $110 cheaper per measure in contrast to the European consumers, whilst gas is also only really needed in Manchuria. So, not to exacerbate...
