Russian Gas Research Articles

Италия в Средиземноморье: дилеммы “cредней державы”

The article analyzes the policy of the Italian Republic in the Mediterranean during the first and second cabinet of Giuseppe Conte through the prism of the “middle power” concept. Relying on the methods of event-analysis and discourse analysis, the author identifies a number of factors that affect Italy’s ability to realize its national interests in the region. Among them, the most important are: the growing contradictions within the Euro-Atlantic bloc (the EU and NATO) on the current regional dynamic and the aggravation of geopolitical competition in the region; the reactive rather than strategic nature of Rome’s politics; the increasing use of “hard power” as a tool for achieving national interests by regional players. The author argues that in these geopolitical conditions, the room for maneuver of a “middle power” is narrowing while the need to “take a side” in current conflicts makes the politics of “equidistance” no longer available, which is contrary to the geo-economic interests of Rome. The collapse of the bipolar system and the evolution of international relations towards anarchy rather than multipolarity led to the fact that at the beginning of the third decade of the 21st century, both the U.S. and the EU have virtually lost a strategic vision of their relationship with the Mediterranean region. Both NATO and the EU demonstrate a growing failure to develop a common view of regional dynamics and a common approach to resolving current conflicts. Under these circumstances, the strategy of a “middle power”, which Italy has been following for several decades, is becoming less and less productive. Maintaining the “status”, “presence” and “voice” in the existing multilateral formats no longer makes it possible to act as a mediator in a dialogue with third countries, since there is no common understanding of both alliances’ (EU and NATO) goals and objectives. And in case such an understanding begins to appear, it is more confrontational than cooperative (like, for example, in case of the presence of Chinese technologies or Russian gas in the European market), which also reduces the possibilities of international cooperation for a “middle power” such as Italy. Besides, these multilateral structures are becoming less and less useful in protecting its national interests. As the events of the analyzed period demonstrated, the alliances’ “crumbling” on all sensitive issues could not help Rome either in solving the migration problem, or in the Libyan settlement, or in the energy problems. A “middle power” used to rely on multilateral dialogue is increasingly being held hostage by the contradictions of states that adhere to unilateral approaches in achieving their national interests. The new era of geopolitical confrontation in the Mediterranean (between the United States, China, Turkey, Russia, etc.) is increasingly reducing the possibility of maintaining a “dialogue with all” and makes a “middle power” “to take sides”. The article contributes to the study of the Italian foreign policy and the analysis of “middle powers’” behavior in the changing geopolitical context of the Mediterranean region.

The Russian invasion of Ukraine exposes deep wounds of the eu’s dependency on Russian gas

The Russian invasion of Ukraine exposes deep wounds of the eu’s dependency on Russian gas

North Africa Can Reduce Europe's Dependence on Russian Gas by Transporting Wasted Gas Through Existing Infrastructure

North Africa Can Reduce Europe's Dependence on Russian Gas by Transporting Wasted Gas Through Existing Infrastructure

Software issues for the russian oil and gas industry during the sanctions period

Software issues for the russian oil and gas industry during the sanctions period

African Oil and Gas Industries in the XXI century

The issues of international trade in hydrocarbons (as both fuels and raw materials) have complicated considerably because of anti-Russian economic sanctions adopted by the USA, EU, and their allies in spring of 2022 after the start of a special military operation in Ukraine. Many initiators of these sanctions have failed to avoid their negative consequences. It is true for the European states suffering from structural imbalances of energy systems since 2021, and still importing fossil fuels and their derivatives mainly from Russia in 2022. Europe looks urgently for alternatives to Russian natural gas and oil firstly in the geographically closest regions of Africa and the Middle East. This study analyses modern natural resource base, production and infrastructure facilities of African oil and gas industries. Despite vast prospects, they have lacked investments and remained rather underutilised in the current century. At present, it is next to impossible to overcome quickly the socio-economic, political and military obstacles to development in Africa, even in case the actual and potential hydrocarbon exporters manage to attract financial, technological and other external resources more intensively. It would take at least two-three years for the first tangible results increasing upstream flows and shipments of African hydrocarbons to Europe, and much longer to achieve a sizeable yet partial replacement of Russian exports. More optimistically, the study evaluates the long-term development of hydrocarbon industries in Africa especially the natural gas production and exports.

Prospects for China's gas industry: will the "window" of opportunity for russian gas remain?

Prospects for China's gas industry: will the "window" of opportunity for russian gas remain?

Comprehensive Assessment of Resource Efficiency of Russian Gas Industry Companies

The purpose of this study is to develop methodological foundations for a comprehensive assessment of the resource efficiency of natural gas extraction, processing and pipeline transportation companies as the basis for balanced consumption and resource provision. The study shows that in complex and rapidly changing conditions, the growth of global consumption of hydrocarbons, in particular natural gas, triggers a search for new resource-saving methods and technologies that reduce the resource intensity of industrial production and the impact on the environment, to develop resource-efficient methods and resource-saving policies. The paper proposes a conceptual approach to a comprehensive assessment of the resource efficiency of gas industry companies and highlights its main provisions. A methodological approach and a methodology for a comprehensive assessment of the resource efficiency of the gas industry have been developed, including an integral calculation and a comparative assessment of the resource efficiency indicators of industrial enterprises: extraction, processing and pipeline transport of natural gas. The proposed methodology for a comprehensive assessment of resource efficiency is distinguished by a system of indicators reflecting the functioning of production, economic, financial, investment, energy and environmental spheres of activity, which makes it possible, based on simulation modeling and scenario forecasting, to conduct a comparative analysis of the development of industry companies by the level of resource conservation, resource availability and resource consumption in the post-forecast and forecast period. The proposed methodology for a comprehensive assessment of resource efficiency in the formation of an optimal structure of resource supply and resource consumption of an industrial enterprise is distinguished by the use of predictive and analytical tools and simulation modeling of the activities of industrial companies, which enables them to determine their resource-efficient development option and select promising business processes. The methodological tools were tested using the cases of companies engaged in gas production (Novatek), gas processing (Sibur) and pipeline gas transportation (Gazprom). The analysis of the results of the conducted approbation showed the existing differences in modern mechanisms for resource conservation, consumption and provision of resources in industry companies, as well as possible growth points and prospects for their resource-efficient development.

Prospects for Russian gas exports in the new conditions

Prospects for Russian gas exports in the new conditions

Natural Gas in Central and Southeastern Europe: Market Unification and New Challenges

Gas consumption and its source are a strategic issue for all European countries. Our study examines the consumption of natural gas in Central and Southeastern Europe, the level and structure of consumption in the region, and analyses the network developments and the construction of LNG ports over the past decade and a half. The rules adopted by the EU created a unified market by providing access to the use of the network. Since the construction of natural gas pipelines in the 1970s, gas imports from Russia have played a dominant role in the supply of Central and Southeastern Europe. In the last 10–2 years, further large capacity pipelines have been built from the east to Europe, which created an opportunity for new connection points for the countries in the region. With the interconnectors built between the individual countries of the region, the market of the region can be now considered unified, where access to the network is provided at moderate costs. At the same time, the consumption and transport of natural gas in the region have been and still are highly politicised issues. On the one hand, the new climate policy concepts and agreements announced have a considerable impact and, on the other hand, geopolitical tensions also affect the transport of natural gas. In 2021, an increase in consumption was still likely. This was due to the fact that the states in the region wished to shift from coal-fired power plants to electricity generation based on a combination of renewables and natural gas, while the new southern pipelines in the Balkans would have allowed for greater imports than before. In the changed circumstances, the previously planned level of natural gas use is expected to be reduced. High prices and the fact that access to Russian gas imports may even be limited due to the atmosphere reminiscent of the Cold War are also factors that point in this direction.

The EU - Russia - Turkey energy triangle: legal and economic conditions of gas transportation via the TurkStream pipeline

This article examines the expanded energy relations in the format of the Turkey-Russia-EU triangle, examines the aspects of energy security. The article analyzes the relations of Russia, as the largest gas exporter, with Turkey and the EU, as the largest importers of Russian gas, from the point of view of trilateral relations. Both Russian, Turkish and EU internal energy markets, prospects and consequences of their liberalization are evaluated. The author believes that gas is a special object of transportation by pipeline, therefore, the transportation contract is subject to special contractual regulation and its conclusion and execution largely depends on the political relations of the partner countries.

РОССИЙСКО-ТУРЕЦКОЕ СОТРУДНИЧЕСТВО В РАМКАХ ПРОЕКТА "ТУРЕЦКИЙ ПОТОК"

Cooperation within the framework of the Turkish Stream project, which provides for the export of Russian gas to Europe through Turkey is discussed in the article. The author studies the conditions of creation, the essence and advantages of the project and analyzes the interests of the participating countries as well as evaluates the benefits that the countries of Southern Europe should receive during its implementation. In the article is noted that within the framework of the project, it was planned to build two gas pipelines, one of which provided for meeting the energy needs of Turkey, and the other for Europe. At the same time, the route of Russian gas supplies to Europe via the gas pipeline following Turkey became the subject of a dispute between Greece and Bulgaria. In the article a conclusion is is also made that TANAP, one of the key elements of the Southern Gas Transportation Corridor, is not an alternative to the Turkish Stream project. The author notes the high geostrategic significance of the Turkish Stream project, its contribution to ensuring energy security not only of the initiator states, but also of the countries that subsequently joined the project. Thus, according to the author, the project played a significant role not only in the development of energy interaction between the two countries, but also created conditions for broad regional cooperation.

Глобальные тренды и целевые индикаторы экономического развития промышленных комплексов газодобычи в Арктике

The current stage of development of the world energy sector is characterized by high turbulence and dynamism of changes. The volatility of demand and prices for energy resources, increased competition in the global market, the evolution of the energy balance, the decrease in the role of traditional hydrocarbons and the progressive development of technological innovations significantly affect the efficiency of the implementation of the Russian gas complex in the Arctic. However, in addition to economic benefits, large-scale production of natural gas in the Arctic encompasses a wide range of issues: ensuring domestic needs for hydrocarbons and stable exports, minimizing environmental damage, organizing complex science-intensive industries and loading industrial capacities, developing transport and social infrastructure, creating new high- tech work places. In these conditions, long-term prospects and assessment of the development efficiency of complex industrial gas production complexes are determined taking into account environmental, economic, technological and social aspects. The analysis of the factors of instability of the world energy system and their influence on the efficiency of the development of gas fields in the Arctic zone was carried out. Target guidelines for the development of the Russian gas industry have been formulated in the context of national interests and priorities of socio-economic development and environmental safety. Indicators of economic development of industrial gas production complexes are proposed, takinging to account trends in the global energy market and the specifics of field development in the Arctic.

Пространственная организация освоения газовых ресурсов Ямальской нефтегазоносной области

The Yamal oil and gas province (OGP) is strategically important for the Russian gas industry. In the coming decade, gas production in Yamal is expected to grow to 180–200 billion cubic meters per year. The main goal of the article is to solve a scientific problem consisting in the study of the spatial organization of the development of gas resources, determination of the rational structure of reproduction of natural gas reserves in the Yamal oil-gas-bearing region in the context of the modernization of the Arctic gas industry complex. The article assessed the gas resources of Yamal, revealed trends in the economic development of natural gas fields, presented the characteristics of investment projects based on the fields being developed. An analysis was carried out that made it possible to differentiate the deposits by the degree of their prospects, and a strategy for expanding the hydrocarbon potential of Yamal was determined. It was revealed that the main areas of production in the Yamal oil-gas-bearing region are associated with the development of deposits with a high level of Cenomanian deposits. Such deposits are characterized by a higher increase in the capitalization and profitability of investment projects in real time compared to fields located in the northern and far eastern seas, including on the shelf of the Kara Sea. It was concluded that the strategy for the reproduction of hydrocarbon potential will be aimed at conducting prospecting and exploration in order to transfer forecast resources to industrial reserves of natural gas. The study applies a general scientific methodology providing for systemic and comprehensive approaches to justify the spatial organisation of gas resources development in the Yamal oil and gas bearing region. A significant body of factual material on the state of free gas and condensate reserves in Yamal has been analyzed. The results of the research were obtained with the use of comparative-analytical, statistical methods of economic analysis.

Possibilities for creating Russian high-tech bottomhole assembly

Development of high-tech well electronic measuring systems is aimed at creating modern equipment: telemetry, well geophysical measurement equipment, the architecture of which is divided into basic (with measurement channels for gamma logging and inductive resistance) and advanced (with radioactive, acoustic, magnetic resonance and thermobarometric measurement channels, including azimuthal methods of investigation). Over-the-bit measurement modules, rotary steerable systems are being developed and channels for transmitting data to the surface are being improved. Vice versa, specialized surface equipment with highly integrated software is being created. Different measurement modules are manufactured by different companies, which creates uncertainties in the possibility of interfacing the manufacturers' measurement modules into a single well measurement system. The article presents an analysis of the readiness of Russian oil service companies to produce well and surface equipment for drilling Russian directional oil and gas wells, meeting modern requirements for accuracy, lifetime and operating conditions. The possibility of creating a fully Russian well high-tech equipment and the required resources, risks and measures to mitigate them when creating a modern well measurement system are considered.

Assessment of risks for the gas industry in Russia in the context of the formation of a common gas market of the Eurasian Economic Union

The research aimed to identifies the risks for the development of the gas industry in Russia in the context of the emerging common gas market of the EAEU. The state of the gas industry in Russia and Russias cooperation with the EAEU member states in the gas sector are considered. The development of the Russian gas industry is determined both by the dominant position of the vertically integrated natural monopoly PJSC Gazprom, and by the characteristics of the global hydrocarbon energy market. Based on empirical data, it is concluded that the creation of a common gas market in the EAEU is not only a challenge to the development of the Russian gas industry, but also a measure to strengthen and expand its positions in the global energy market, increase the efficiency of participation in the global energy agenda, as well as an incentive for improving the domestic gas market in Russia.

Overcoming imbalances in the provision of natural resources for the development of the World Economy: maintaining a minor role of Russian TNCs

The article shows that although the threat of rapid depletion of mineral resources in the world is largely exaggerated, imbalances in their distribution and consumption are gradually increasing. On the one hand, globalization intensifies the competition of countries for resources, as the global development of recent decades shows. On the other hand, globalization mitigates imbalances through foreign trade and direct investment. The article examines the role of Russian investor companies in these processes. The research is based on corporate materials, official statistics and the most authoritative sources of industry information. The contribution of Russian oil and gas TNCs, companies specializing in the construction and operation of nuclear power plants and hydroelectric power plants, as well as leading investors in the field of non-ferrous metal industry was studied. A distinctive feature of Russian TNCs is the limited geography of their foreign business, especially in the countries of the global South. Usually we can see the preference of a narrow circle of countries which had long history of good political relations with Russia. At the same time, reliance on purely economic considerations is less pronounced than that of leading Western competitors. As a result, external shocks (whether political cataclysms in individual countries in the case of the oil and gas sector or sharp fluctuations in the international conjuncture in the case of non-ferrous metal industry) can greatly affect the scale of foreign activity of Russian TNCs. For the time being, it is more likely that we can still talk about the initial stages of internationalization of Russian business, which has little effect on the nature of global development with its investment activity. The article also shows that since in the future the scarcity of land and water resources will increase in the global economy, additional opportunities will open up for Russian companies to strengthen our country’s international positions. However, so far the activity of Russian TNCs is not observed there because it is limited mainly by the increase in grain exports to developing countries.

Case C-848/19 P: Germany v Poland and its outcomes for EU energy sector: an extended case note on the European Court of Justice judgment in the OPAL case

Abstract The European Court of Justice (ECJ) judgment in the so-called Ostsee-Pipeline-Anbindungsleitung (OPAL) case on 15 July 2021 dismissed Germany’s appeal on the previous European Union (EU) General Court’s decision, which focused on the need for considering national interests of EU Member States and the interests of the Union itself in the decisions by the EU institutions in energy sector to acknowledge the solidarity principle provided in the Treaty on the Functioning of the European Union. This decision found a significant interest among academicians and legal practitioners and raised numerous discussions, since it is still not clear what are the exact criteria on application of this principle, especially in relation to such ambiguous energy notions as ‘security of supply’. The presence of the geopolitical context and direct impact of the decision on the volumes of Russian gas transported via the Nord Stream pipeline also makes this case extremely complex and raises some additional questions regarding the impact on external gas supply to the EU. Moreover, the statement of the Advocate General on the applicability of the solidarity principle to all the other objectives of EU energy policy (not limiting to the scope of security of gas supply), which was also supported by the Court, brings many additional aspects to be considered with regards to the impact of the OPAL case on EU energy sector. Therefore, this case note article undertakes a critical analysis of the recent ECJ judgment and Advocate General’s opinion to identify some gaps that are still not clarified and to estimate the possible outcomes of the judgment on the future of EU energy sector development.

Gazprom Neft Courts Middle East NOCs With Digital Technologies as it Seeks Bigger Role in the Region

Far from the Siberian gas fields that it is best known for producing, Gazprom Neft—the oil-focused subsidiary of Gazprom—is taking steps toward a larger footprint in the Middle East. The Russian oil company said it wants to open doors in the region by opening up its portfolio of advanced technologies to national oil companies (NOCs) there. To that end, Gazprom Neft chose this year’s SPE Annual Technical Conference and Exhibition (ATCE) held in Dubai to showcase half a dozen proprietary developments, some of which remain in the R&D phase while others are being used companywide. They included an in-house-developed hydraulic fracturing simulator, drilling advisory and automation software, a new material for drill bits, and digital twins for its facilities. Each represents a major investment of time and resources, but the majority state-owned Gazprom Neft said it doesn’t necessarily want cash from those who might use the fruits of its labor; it wants relationships. “We are not a sales company, we are an oil and gas company,” said Roman Sokolov, the manager of international technology scouting and commercialization at Gazprom Neft. Speaking from the company’s booth at the industry conference, he explained that Gazprom Neft is looking to exchange experiences with other operators “rather than commercializing in the traditional sense. “Essentially, we are open to partnerships and that’s why we are here—to show [what] we have in our portfolios and see what people are offering,” he added. Unlike several of the largest US and European oil companies, Gazprom Neft’s Middle East exposure today is relatively modest. It operates a single development, the Sarqala field in the Kurdistan region of Iraq, where production is reported to be about 33,000 B/D. In 2019, however, Gazprom Neft began its quest to enter the growing UAE market by inking a wide-ranging collaboration agreement with the Abu Dhabi National Oil Company (ADNOC) spanning everything from joint assessments of concession blocks to sharing digital technologies. At ATCE, the Gazprom Neft delegation made clear it wants to build stronger ties with other NOCs too, including Dubai’s Dragon Oil and Abu Dhabi’s Mubadala Petroleum. Gazprom Neft’s new friendship campaign comes against the backdrop of economic sanctions that the US and members of the European Union imposed on Russia following its military actions against Ukraine in 2014. As a result, Russian energy companies have been forced to rely more on domestic innovation to keep pace with international rivals on things such as the digital revolution and shale production. This is of course a position that is somewhat familiar to the Russian oil and gas story. As many remember, it was Russian engineers working inside the then Soviet Union who are credited with making key advances in horizontal drilling during the Cold War in the 1960s.

US Policy in Conditions of Growing Non-Military Challenges in Europe

The article deals with the problem of new, non-military challenges for the US in Europe. Previously Washington saw the main regional risks in the military-political sphere. Now serious challenges are emerging in issues of trade, technological and information security. It also appears to lack initiative for regional development. To a large extent, the risks can be associated with the activities of the PRC. The study analyzes the American policy in specific areas (trade, 5G networks, energy exports, relations between allies). The main approaches that Washington can apply to protect its regional interests are as follows: attempts to put pressure on allies by introducing new tariffs and reducing cooperation in several areas; the desire of the US to provide an alternative to the projects of the PRC in the region; deliberate militarization of several topics by the US. But still, the universal instrument is the emphasis on shared values and the issue of human rights. The resolution of bilateral problems between the US and the EU will not fully deal with new risks. Trying to fend off the challenges emanating from the PRC, the US has to partially repeat and duplicate Beijing's policy, creating alternative infrastructure projects or trying to promote its LNG instead of Russian gas.

The North-South Gas Corridor in the Context of Poland’s Gas Transmission System—A Perfect Opportunity to Diversify Gas Resources

The energy sector in Poland is currently calling for dynamic redevelopment and cleaner energy. This country is world famous for its high level of coal production, from which it does not want to retreat in the next two decades. For this reason, it is safer to gradually reduce the use of coal while increasing the consumption of gas and simultaneously developing green energy. However, the Polish gas sector is still dependent on Russian gas supplied through the Yamal gas pipeline. Taking into consideration Polish geopolitics, this state of affairs poses a huge challenge and a threat to Poland’s energy security. That is why the concept of the North-South Gas Corridor was introduced. It is intended to be a network of gas pipelines that connect the countries of Central and South Europe to two gas terminals (in Poland and Croatia), which will supply gas from a chosen source. This article presents the current condition of the gas sector in Poland. It focuses on the North-South Gas Corridor project and its impact on the energy security of Poland. An analysis of documents and field research shows that the North-South Gas Corridor provides Poland with an opportunity to diversify the sources and directions of gas supply over the next few years.