Special reports

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

State regulation in the oil and gas sector in 2011 and prospects for 2012

The year 2011 turned out to be rather contradictory for the oil and gas industry. On one side, preliminary results of basic parameters seem quite satisfactory. On the other side, the depletion of oil production growth potential is becoming more obvious. Prime Minister Vladimir Putin several times mentioned that the oil industry reached its peak. This was described as an ordinary event, although in reality it reflects recognition of strategic mistakes once made.

The Present and Future of Gazprom

Gazprom’s 2010-2011 financial results were phenomenal. An employment contract of Gazprom CEO Alexey Miller, who has been managing the gas giant for 10 years, was prolonged ahead of time for another five years. However, the country’s main company found itself under powerful pressure both on the domestic and external markets.

State management in the oil and gas sector: Last autumn of current political cycle

The main political intrigue of the upcoming election cycle would seem to be over. Vladimir Putin is set to return to the president’s office, while Dmitry Medvedev is to chair the Cabinet. But in reality, everything is just about to begin. Some scenarios of reformatting Russian state authorities are indeed ruled out. Yet, there are many unclear things, including the question of the oil and gas sector management. Changes in the system are unavoidable. There is temptation to fix the rules of the game for the next six years, which adds a special connotation to the upcoming transformation.

Central Asia and Caspian Region: Problems of Development and Transportation of Hydrocarbons

Despite problems related to signing contracts on purchasing gas from the Caspian region countries, the European Commission is fully determined to implement Southern Corridor projects to reduce dependence on Russia. In its turn, Moscow keeps steadily promoting its alternative South Stream project. But the price of the question puts both sides into a difficult position.

Export Strategy of Russia’s Oil and Gas Sector

In 2010 the Russian oil industry set an absolute record in terms of production. An oil pipeline to China has been launched this year expanding our potential of oil supplies to Asia. Diversification of export routes seemed to be quite a reasonable strategy on the background of growing production. However, there are certain factors that should be taken into account.

Rearrangement of Property in the Oil and Gas Sector

Preparations for the elections are accompanied by quite serious changes in the structure of property of oil and gas companies. Liberal experts have formed a firm opinion that the state presence in the sector is growing. In reality there is an opposite process. The matter is that new owners of assets are loyal people.

New Legal and Fiscal Procedures in the Oil and Gas Industry

There are rather contradictory developments in the Russian oil and gas industry. However, this is not surprising: the role this sector is to play in the current and most importantly in the future structure of the Russian economy has not been finally defined yet. Besides, there are active preparations for the introduction of changes in the legislative framework of the Russian oil and gas sector. A new bill on oil is to be soon submitted to the State Duma; the document is to become almost a new oil constitution.

Prospects of Third Legislative Package Implementation, Future of European Gas Market

The European Union remains Russia’s key gas market. Therefore, in Russia they take a close interest in any changes therein. The new EU legislation, as contemplated by its authors, is intended to destroy vertically integrated monopolies in the transport and storage of gas. Gas suppliers with Russia at the helm are expressing increasing concerns about the introduction of the Third Package and insist on additional consultations.

All reports for: 2011 , 2010 , 2009 , 2008 , 2007