A Simplified Model of the Russian Gas Industry

Abstract

Russia feels confident in the group of leading countries in the production and export of natural gas (natural and associated) due to the largest proven reserves. The unique ecological properties of natural gas in comparison with other types of fossil fuels, according to analysts of the largest international energy companies and leading world energy agencies, will allow it to maintain an ever-increasing demand in the future until 2040, despite the massive introduction of renewable energy sources (RES) around the world. There is no consensus among the forecasters about the levels achieved at the end of the forecast period and the growth rates. According to forecasts, the main drivers of gas demand growth will be the third world countries, which will be led by India and China. According to forecasts, the European gas market will stagnate due to the widespread introduction of energy-saving technologies, global climate change and the massive construction of renewable energy sources in the large and small electric power industry, due to significant legislative and significant economic preferences. The COVID 19 pandemic has significantly reduced the demand for gas, which, together with low prices in all world markets, calls into question the implementation of not only the most capital-intensive projects, but also projects with medium capital intensity. In this regard, the creation of a simplified model of the gas industry in Russia is becoming more urgent.