Русская версия

( Translate with Google )

Main page > Products > The fuel and energy complex of Russia - Series of analytical reports > State Regulation of the Oil and Gas Sector in 2009 and Outlooks for 2010

State Regulation of the Oil and Gas Sector in 2009 and Outlooks for 2010

State Regulation of the Oil and Gas Sector in 2009 and Outlooks for 2010

The National Energy Security Fund traditionally sums up the year results with a concluding report evaluating main tendencies and events in the oil and gas sector.

The year 2009 was quite eventful. The situation with production made the executive power change priorities in the taxation policy. There were desperate battles for export routes of hydrocarbons. Wars for property and licenses continued. Preparations for a new wave of privatization began. Non-residents were again actively invited to invest in upstream.

There was a complicated situation: problems with production were becoming more and more obvious but main players were focused on disputes between clans rather than on solving the problems.

The following issues will be elaborated on in the report:

Production results of the year
- Stagnation in the production sector amid rising costs
- Revision of development strategies of companies with decline in forecast parameters
- Main production and marketing risks
Export route wars
- The European and Chinese ways of Russia’s fuel and energy sector development
- Baltic Pipeline System-2 vs. East Siberia-Pacific Ocean pipeline
- Active promotion of a gas pipeline to China and political motives behind exports of hydrocarbons to the PRC
Fiscal and customs policies
- Tax benefits in 2009 and their influence on the sector
- Main beneficiaries of a new taxation policy. Prospects of a “tax haven” in Yamal
- “Eastern allowances”
- Dividend policies of companies
- Raising profits instead of greenfield investments
New laws, e.g. “On Energy Efficiency” and “On Oil”, as instruments of administrative confrontation
Struggle for geology
- Battles for a resource base between clans
- Prospects of reforms in the geological prospecting sector and creation of a Rosgeologia state corporation
Changes in policies towards non-residents
- Transferring investment risks and the necessity of finding technical solutions onto foreign firms
- Shtokman: basic precedent or local solution?
- The Kamchatka case – non-residents as victims of inter-clan wars

Forecast of the sector’s development in 2010

Economic possibilities and political threats

The contents of the report:

Introduction.	2
Chapter 1.Preliminary Results of Production in 2009	3
Chapter 2.Struggle for Export Routes	15
Chapter 3.Non-residents: New “Romantic Period”	30
Chapter 4.Struggle of Clans for Resource Base	35
Chapter 5.Tax Novelties in the Sector	51
Forecast of the Sector Development in 2010	60

Date of issue	January 13th, 2010

If you are interested to obtain please contact » Elena Kim

Other issues:

Special report:

Nord Stream 2 and Ukraine: Costs Should Decide

There has been much discussion about how Russia – Europe’s biggest gas supplier – can continue to supply gas to Europe over the coming decades in the most secure and cost efficient way. Gazprom and its European partners have decided that building two additional pipelines through the Baltic Sea (Nord Stream 2) is the best commercial solution to secure future gas supplies for the EU, where gas production continues to decline and demand is expected to grow.

Shale Revolution: Myths and Realities

The boom in shale gas production in the US and its wide-ranging influence on markets rocked the gas world. Liquefied gas deliveries were redirected, altering the already fragile balance of demand and supply in traditional markets for pipeline gas in Europe.

Liquefied Natural Gas Outlook: Expectations and Reality

World market has shown interest to liquefied gas. Russia has so far been aside of it. However, producers have announced several large LNG projects. The new study will help investigate this delicate subject and understand what is in store for LNG production and export in the nearest years.

Analytical series “The Fuel and Energy Complex of Russia”:

Outlook for Russian LNG Industry

European sanctions and Brussels’ policy of abandoning Russian energy resources plus the destroyed Baltic gas pipelines have shut in Russia a respectable volume of pipeline gas that cannot promptly be sent to alternative markets. This would seem a strong argument in favour of developing LNG production in Russia. The new NESF report must give the answer to the question about what part of the plans for dramatic increase in LNG production in Russia can be considered realistic.

Russian Energy and West One Year after Ukraine Conflict Began: Are There Connections Still?

Global politics are the framework for energy relations. However, energy projects are developed and deals are made immediately at the corporate level. It is companies that form the threads that tie nations in the energy business. It is therefore important to analyse relations between Russian and Western corporations. As long as companies from the “collective West” stay in Russia, there are still options for continuing co-operation. The latter still brings Russia fiscal revenue and markets.

Green Agenda in Russia during Bitter Conflict with West

After February 2022 the agenda was radically rewritten. Western companies began leaving Russia en masse, economic relations with the West were drastically reduced, and the Russian economy began to be pushed violently from the global economic space, hemmed in by sweeping sanctions. All that was, to put it mildly, not the best background for talking about ESG. Especially because tasks of survival and stability under unprecedented pressure became the priority in the economy. In late 2022, however, attempts to reanimate the ESG agenda already became obvious. The message is put across insistently that it is important to Russia regardless of the foreign policy situation. While earlier the “green pivot” was seen as an opportunity to attract Western investors and their technological solutions to Russia, now Keynesian reliance on domestic manufacture is discussed.

Oil and Gas Sector Regulation in 2022 and Prospects for 2023

The year 2022 was very tough for the Russian oil and gas industry. After February 24, the industry was subjected to the most severe sanctions. However, their influence was quite different. Nevertheless, the industry is entering the year 2023 with anxiety. The EU intends to continue to reduce purchases of Russian gas, which will inevitably affect Russian revenues. The launch of new LNG plants is in question due to technological sanctions. Another question is about the green agenda. Thus, it is a big question whether it is reasonable to keep insisting on accelerated energy transition in Russia.

Gazprom at the Forefront of Economic and Political Battles with Europe

Gazprom is being actively thrown out of the market. Its annual supplies to Europe have shrunk from the previous 150 billion to 65 billion cubic metres of gas. European officials assure that they have already learnt how to live without Russian gas, so they will bring its purchases down to but nominal values in 2023. Their main hope is liquefied natural gas. Today the EU must make a crucial decision: whether it has passed the point of no return in gas business with Russia and whether it is certain that its economy will endure without supplies of Russian pipeline gas. Or, on the contrary, Europe will realise after all that the gas balance will not be achieved and the payment for so headlong a rush for LNG will be disproportionate. Assessment of the potential volume of LNG that will appear on the market before the end of the current decade will be the most important factor for making the decision.

All reports for: 2015 , 14 , 13 , 12 , 11 , 10 , 09 , 08 , 07

Rambler's Top100

About us | Products | Comments | Services | Books | Conferences | Our clients | Price list | Site map | Contacts

Consulting services, political risks assessment on the Fuel & Energy Industry, concern of pilitical and economic Elite within the Oil-and-Gas sector.
National Energy Security Fund © 2007