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Russia’s Big Energy Secret

 

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Kazakhstan, meanwhile, is booming, and plans to nearly double oil production to 150 million tons a year by 2015. A large chunk of that will be exported to China, through new Beijing-funded routes, or to other markets through the Baku-Ceyhan pipeline, bypassing Russia."Pretty soon the Chinese are going to exchange their bicycles for cars, so their oil needs will boom. We're happy to have such as a big, stable neighbor just on our border," says Kamal Burkhanov, a Kazakh parliamentarian. "How long should Central Asian countries be locked in by Gazprom's prices? The transit fees they pay us are kopecks."

True enough. For all its pretensions to being Europe's dominant energy supplier, Gazprom has stood on feet of clay. Now that Russia's former vassals are discovering their power, Moscow may have to ditch its trademark energy strong-arm tactics, and adopt a new gas diplomacy.

With Anna Nemtsova in Astana

© 2007

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Member Comments

  • Posted By: zviad @ 01/25/2009 3:48:37 AM

    An excellent article. Russia's lack of own energy production explains the Russian invasion of Georgia in August 2008. Russia's long term goal is to control the pipes that bypass Russia and deliver the Central Asian oil and gas to Europe through Azerbaijan and Georgia.
    That is why Russia is so worried about Georgia joining NATO. Russia will not be able to invade or intimidate Georgia, when it becomes part of NATO.
    The accuracy of Owen Matthews' analysis is also evident from Russia's gas war with Ukraine and Europe in January 2009.
    Putin system abuses not only neighbors, but also own citizen. North Caucasus is devastated and the local population is disenfranchised. The political oppression is increasingly harsh approaching Soviet times. Politacal assasinations of dissenters and journalists is systematic. The elections are nondemocratic and unfree. The free media is suppressed. Corruption is pervasive.
    The West must support Russian democratic groups and free media. The West must ensure security of Russia's neighbors. Putin's Russia may not be trusted.

  • Posted By: streetwise @ 01/18/2008 4:43:50 PM

    Braes, Russians build weapons not only to rearm themselves, but also to sell them abroad (and not only to rogue states: even to India -40 %-, Malaysia amd even Greece) . Weapons are the second voice of ruxxian export, after energetic rough materials . That is: more cash . And plenty of it...
    I have read the article of prof Homyakov . His forecasts are based partly (if not mostly) on the assumption that Russian will never ask foreign companies to help them in their search for new source of oil and gas . Well, I have a news for you: they did (and do, and will do) . They have asked french TOTAL and Norwegian Statoli for a participation (not necessarily on share production basis) in the field of Stockman, they are talking with Chevron for the siberian area, and they are already cooperating with italian ENI right for Yamal (regarding Jamal: prof Homyakov says the problem there is the melting permafrost, other tecnicians say the problem uis there is stil too much permafrost...) . And all the company have or will say "yes please" . Why ? because they have no time to wait the outcome of a new russian revolution (nationalistic or what you will) in 2 years time . They need oil (and gas), they need it plentifull, and they need it now (and tomorrow, and tomorrow, and tomorrow...)... .

  • Posted By: Bergerac @ 01/03/2008 5:50:11 AM

    In fact, the article is nothing but an evident manipulation with a lot of factical mistakes. First of all, Gazprom really produces about 550 bcm, but overall Russia's NG production is 90 bcm more. Next - current Russia's NG imports from Central Asia are only 40 cbm, i.e. 6%, a year. What about developing new NG fields authors preferred to forget or even not to know, that two weeks ago Gazprom set in operation Yuzhno-Russkoye gaz field (+25 bcm), in Yamal. Etc. etc.

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