Showing posts with label Russia. Show all posts
Showing posts with label Russia. Show all posts

Wednesday, August 19, 2009

Putin Promises Venezuela First-Rate Oil Technology


In the latest show of goodwill between the Russian-Venezuelan alliance, Prime Minister Vladimir Putin has pledged splendid Russian oil technology for Venezuela's oil fields.
Russia will use the most modern oil extraction and processing technology if it wins access to Venezuela's oil deposits, Prime Minister Vladimir Putin told a Venezuelan official delegation on Tuesday.

Venezuela's state oil company PDVSA and a consortium of Russian firms expect next month to present a joint venture that aims to develop the Junin 6 block in the Orinoco oil belt, which Venezuela says has the world's largest hydrocarbon reserves.
[...]
"If we will work in Venezuela and realise all our plans, the technology and equipment which will be used in Venezuela will be even more modern," Putin said.

"The Russian companies will use the latest technology available in global markets," Putin said.

A formal contract to jointly develop the Junin 6 block with an estimated production capacity of 200,000 barrels per day should be signed before the end of the year.
- Brewskie

Monday, July 13, 2009

Breaking Russia's Gas Stranglehold

In regards to an earlier post, six countries have agreed to build a US-backed gas pipeline, the Nabucco, to break Russia's gas export monopoly to Europe:

Officials from six countries gathered Monday in Turkey and signed a deal to build a U.S.-backed pipeline, aimed at breaking Russia's near-monopoly on natural gas supplies to Europe.

The proposed Nabucco pipeline would run from Turkey's eastern border, through Bulgaria, Romania and Hungary, to a key gas terminal in Baumgarten, Austria.

Germany is also a partner in the deal, which is being signed in the Turkish capital, Ankara.Russia controls the current network of pipelines that supply Europe with natural gas.

To challenge the Nabucco proposal, Russia has proposed a competing natural gas pipeline to southeastern Europe. The South Stream pipeline would pass under the Black Sea and connect with Bulgaria. Russia and Italy would each control half of that pipeline.

[...]

Gas from Azerbaijan's Shah Deniz 2 field will be a crucial component of the project. European officials have raised hopes that other gas producers, such as Iraq and Turkmenistan, also might contribute to the pipeline.

Big hurdles remain for the pipeline project named after an opera by Verdi.

Consortium members must raise billions of dollars for the Nabucco project. Construction has not begun, and gas is not projected to be pumped through until 2014.Still, industry analysts called Monday's intergovernmental agreement a significant development.

"It's one of those steps that moves Nabucco out of the possible column and into the probable column," said John Roberts, an energy security specialist with Platts.

"My own guess is roughly by the end of the year, it will be pretty clear that Nabucco will be built."


- Brewskie

Tuesday, June 30, 2009

Surprise Fact: Africa Alone Can Feed the World?

(Hat tip: the always amusing Peak Energy)

Africa's lost history always leaves me vexing: what could have been had the Europeans not embarked on their infectious colonialism of Mother Earth's tragic continent? Well, it appears Africa's enigmic nature leaves us perplexed in the present, too (link):

DOOM-MONGERS have got it wrong - there is enough space in the world to produce the extra food needed to feed a growing population. And contrary to expectation, most of it can be grown in Africa, say two international reports published this week.

The first, projecting 10 years into the future from last year's food crisis, which saw the price of food soar, says that there is plenty of unused, fertile land available to grow more crops.

"Some 1.6 billion hectares could be added to the current 1.4 billion hectares of crop land [in the world], and over half of the additionally available land is found in Africa and Latin America," concludes the report, compiled by the Organization for Economic Cooperation and Development and the UN Food and Agriculture Organization
(FAO).

If further evidence were needed, it comes in a second report, launched jointly by the FAO and the World Bank. It concludes that 400 million hectares, straddling 25 African countries, are suitable for farming.

Models for producing new crop land already exist in Thailand, where land originally deemed agriculturally unpromising, due to irrigation problems and infertile soil, has been transformed into a cornucopia by smallholder farmers.

As in Thailand, future success will come by using agriculture to lift Africa's smallholder farmers out of poverty, aided by strong government measures
to guarantee their rights to land, say both reports.


Here's a recent article about Russia's vast, unrealized agricultural potential:


Russian President Dmitry Medvedev this weekend proudly hosted a world grain
forum in his home city of Saint Petersburg, promoting Russia as a major player
in agriculture and warning that hunger remains a global problem.

“In the next 10-15 years we are planning to bring the volume of Russian
grain exports to 40-50 million tons, increasing our share of the global market
to 20 percent,” said Agriculture Minister Yelena Skrynnik.

“Russia is not only about gas, oil and metals. We also have great grain
resources,” she said. Last year, Russia exported 20 million tons out of a total
of 108.4 million tonnes of grain harvested.

[...]

Russia has tens of millions of hectares (acres) of chernozem (black earth), a dream soil because of its richness in humus, which is formed by the decomposition of plant matter by micro-organisms. The high humus content gives the soil an ability to retain moisture that makes it perfect for farming. The famous Black Earth region in the southwest of Russia covers an area approximately half the size of Germany.

But the fall of the Soviet Union led to vast tracts of arable land going fallow. Ex-Soviet states have lost 24 million hectares (59.3 million acres) of arable land — three quarters of it in Russia — since 1993, said Dmitry Rylko, head of the Russian Institute for Agricultural Market Studies. He added that by contrast 31 million hectares of arable land had been gained elsewhere in the world. “The Soviet authorities exploited a large part of the arable land but in a completely unproductive way,” he said, adding that the fall of the USSR led to a dramatic decline in demand and support in the sector.

Medvedev said that Russia would now be preparing cultivation of 20 million hectares of farmland that have fallen fallow since the Soviet collapse.

Thanks, Karl Marx, you've certainly helped the world progress nicely. Dmitry Orlov must have a bust of you on his mantle.

- Brewskie

Wednesday, June 3, 2009

Russia to Help Develop Orinico Belt

Venezuela and five Russian oil companies have signed an agreement to develop Orinoco Belt. Considering "Caesar Chavez's" manhandling of the nation's oil industry has dropped production down to 2.15 mbpd, we'll see how this pans out.

Venezuela agreed to work with a group of five Russian oil companies including Rosneft and Lukoil to create an oil joint venture in areas of the country’s Orinoco Belt, according to an accord published today.

The venture will work in the central and northern parts of the Carabobo 1 Block, according to an agreement signed 26 November and printed today in the Official Gazette, the formal record of Venezuelan government actions.

The accord says Russian National Oil Consortium, or Consorcio Ruso, will be a partner with Venezuela, said a Bloomberg report.

Consorcio Ruso was formed last year to work in Venezuelan oilfields and includes Rosneft, Surgutneftegaz, Gazprom, Lukoil, and TNK-BP.

Venezuela is auctioning minority stakes in the same sections of the Carabobo 1 Block.
Nineteen companies, including Consorcio Ruso, paid $2 million each for data on three proposed projects, one of which would pump 400,000 barrels per day from the same areas described in the treaty.

The accord does not mention the auction.

Other companies that may bid include Chevron, BP and Shell.


- Brewskie

Friday, April 10, 2009

Interesting Russian Oil Exec. Wisdom

Rigzone has a posting of Rosneft head Sergey Bogdanchikov predicting investment shortfalls for Russia's oil industry. That's not the reason I'm posting this, rather it's his insight of what sets the price of oil:

Bogdanchikov also said that at present 93 percent of the new oil deposit development projects are unprofitable due to fiscal burden and high tariffs for natural monopolies. In his words, "fiscal burden and income tariffs constitute around 70 percent of the price of oil". Thus, he said, "an oil company manages only 7 percent of the price of oil; everything else is taken away".


On revising Russia's tax system:

In a time of global financial crisis, the head of Rosneft thinks, "the oil sector needs a completely new tax system." He said that Russian Prime Minister Vladimir Putin had instructed ministries and agencies to draw up a new tax system under which profit, not earnings, will be taxed, as is the case in other countries. "If this is done quickly we will have investment resources for the development of the sector," he said.


- Brewskie

Tuesday, January 27, 2009

EU Tires of Russian Recalcitrance


Europe is getting fed up with Russia. After being left to freeze during the annual Russian-Ukrainian gas spat, the Eurozone has decided its had enough of the schizophrenic gasbag, and the trailer-trash instigator. Europe is looking to take matter into its own hands, and secure its gas future.

This won't be easy. Europe is experiencing declining production in the midst of increasing demand - consumption has risen 70% since 1990! Still, Europe is cradled in an enviable part of the world where others, bloated with gas, are willing to deal for "developed" currency: Africa, the Middle East, and Central Asia. Importing from a variety of sources could induce Russia and Ukraine to straighten out their act.

According to Businessweek, Europe's key banks and the EU presidency have reached an informal agreement to financial and political backing for the Nabucco pipeline. If constructed, this 2,050 mile winding snake will sip up gas from Azerbaijan and Turkmenistan, cut through Turkey and the Balkans, and make delivery in Central Europe - cutting out the Jerry Springer sparring partners.

Europe has also taken note to America's recent success with shale gas. GASH, an interdisciplinary shale gas research program, has recently begun a six-year initiative to map possible shale gas sites in Europe. Western Europe may possess 510 Tcf of shale gas (Canada is also looking into the same game).

Additional Russian-European pipelines that bypass Ukraine are also being considered.

- Brewskie