... original Nord Stream came under strong criticism, and a 2014 visit of U.S. senators to Bulgaria was soon followed by the refusal of the authorities in that country to go ahead with the Gazprom project to build South Stream on its territory. Even earlier, the U.S. Department of State created the post of United States Special Envoy for Eurasian Energy (in the Caspian region), originally occupied by Clayland Boyden Gray (2008–2009), and then by Richard L. Morningstar (2009–2012).
In order to support American gas producers, the U.S. authorities are trying to clear the market of competition for them, specifically targeting Gazprom’s ...
In May 2014, in the aftermath of Russia-Ukrainian crisis, the European Commission adopted European Energy Security Strategy, establishing two pillars of European security of supply: prevention and mitigation. The main goal was to prevent gas supply disruptions by implementing “gas stress tests” (modelled by ENTSOG) and to foster solidarity (Regulation ... ... price in the EU and low industrial demand for gas as well as post-Fukushima nuclear dismantlement) remains cheaper, giving the USA additional incentives for export. Today, 53% of the EU (80% in North West EU) gas supplies are traded in gas-for-gas markets ...
Going South?
While Russia and the Middle East have remained champions in gas and oil production for decades, the USA is looking for new greenfield projects and partnerships with countries not facing existing political constraints: it is the ... ... penetration to their markets less viable. Political tensions (especially with Russia under current sanctions) make cooperation in energy sector not only unlikely but virtually impossible. Thus, the USA in a way counters Russian pivot to Asia by expanding its ...
... beating the last 5 records set by Saudi Arabia. This achievement was even more impressive as it did so by increasing real or innate output, not as was the case of the Middle East giant through a fluctuation of its existing spare capacity. As BP predicts, USA will be able to become an energy exporter by 2016 and net gas exporter by 2018. Moreover, by 2035 it will be the 2nd biggest energy exporter. As a downside for other exporters, USA’s rise will inevitably hinder production for other players by taking their market share, be it regionally for players like ...
... have been doing so for ~20 years with success. Russia has only surveyed the Far East a little and is yet to find the critical gas hydrates. Secondly, as waters warm it may open up some industries like energy and shipping, but affect others like fishing. In warmer waters the fish will swim out more from the shores and out of the ... ... this opportunity to fish legally as both these nations see the Arctic as a way to reignite their faltering stocks.
In the USA’s case melting ice has been more of a bad issue as it undermined exploratory drilling and made production harder, as ...
... major assets, nor can China engage Europe or USA as that is a political minefield.
If we recall in 2005 CNOOC tried to buy USA’s Unocal, but it failed spectacularly, as liberal mottos proved not as free as they sounds. Yergin (2011: 204-205) described the attempt well by saying that it was like – throwing a lit match into a gas filled room on top of Capitol Hill, as it instantly flamed a debate over energy security. So to put it crudely China is not allowed to buy firms so that it can import high-end technologies to better ...
... interests of the US to change the system. If we look at the recent GDP statistics we see USA has recovered quicker than any other major economy. A lot will depend on how the... ... 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...
... invasion and overthrow of Saddam, about ¼ of Iraqi output was lost in comparison to year 2000, which means it will be a major challenge with the current difficult political climate.
Europe Refines A Meltdown
As a consequence of recent energy trends the European oil refineries are in systemic crisis. USA’s reduction of gasoline imports due to shale and commissioning of highly effective oil refineries in the Middle East/Asia has filled many rooms with pessimism. The period of 2004-2008 branded by LUKoil as the ‘golden age’ of European refining, has come to ...
... fact numerous times. Thus, the rational thing to do would be to reduce costs as much as possible to increase competitiveness of Russian gas and oil – for instance, the taxation system needs a lot of attention as it is a very heavy burden on the energy industry. The current tax burden of 73% per barrel is unlikely to increase, but it is very high, in contrast the USA's 44% out of each barrel sold. In the UK a dual system exist with a portion of tax going to old oil/gas wells to maintain their production levels which seems very rational and perhaps a case to look into, but vitally this cumulative tax rate is still a lot less than in Russia at around 60%. The problem for Russia is that the oil and gas industry is ...
... interest rates across the whole eurozone, fuelled credit and real estate bubbles in the USA and Europe, which burst in 2008-9 amid the global ‘credit crunch’.
... ... 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...
