The Conflicts about Russian Energy Policy
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Transcript The Conflicts about Russian Energy Policy
The Conflicts about
Russian Energy Policy
Christoph Gross
Nina Jentl
Martin Steindl
1 Primary Energy Sources
global player of primary energy sources in the
world
largest reserves of natural gas and oil
significant part of worldwide demand covered
by Russia
also big sources
Coal
Uranium
1.1 Oil (I)
after the collapse of the Soviet Union
decrease in the production to 50%
Peak 575 million tons per year
Last years
increase oil price
more investments in technology
increase in production
oil production
70% export
30% refined locally
1.1 Oil (II)
export routs
Transneft-controlled pipelines
Druzhba pipeline to Central and Eastern Europe
Primorsk port
via Black Sea
Majority of Russia’s oil exports
non-transneft-controlled
Around 0,3 million tonns
Via other sea routes or via rail
1.1 Oil (III)
proposed oil pipeline routes and pipeline
expansion projects
Russia plans to build and extend their pipeline
system all over the world
Adria Reversal Project
Baltic Pipeline System (BPS) Expansion
Caspian Pipeline Consortium Expansion
Kharyaga Indiga
Murmansk
Eastern Pipeline
1.2 Natural Gas (I)
largest known natural gas reserves of any
state on earth
gas sector key strategic importance
2006
World‘s biggest gas producer
22% of global natural gas production
world‘s biggest exporter
1.2 Natural Gas (II)
1.2 Natural Gas (III)
Gazprom
Russian gas monopolist
produces the whole natural gas for Russia
needs to boost its production
to fulfil longterm aim of increasing European sales
to secure more reliable export routes
Gazprom‘s production is expected to decline in
the next for years
1.3 Coal
Russia has the world‘s second largest
recoverable coal reserves behind the US
2006
Production 321 million short tonnes
Consumption 260 million short tonnes
Export 61 million short tonnes
Russian government‘s strategy
Increase coal production and build more coal-fired
plants to reduce demand for natural gas
Increase exports of natural gas
2 Electricity Production (I)
Russia fourth largest generator of electricity
behind the U.S., China and Japan
generator capacity
actual generation
68% thermal
21% hydro
10% nuclear
1% renewables
16% hydro, 16% nuclear
last decade
privatization
de-monopolization
2.1 Hydropower (I)
Large potential for medium hydro power
projects
Most of the potential hydropower resources
are located
in Central and Eastern Siberia
in the Far East
North Caucasus
Western part of the Urals
2.1 Hydropower (II)
2.2 Nuclear Energy
Russia first country to have an operating nuclear
energy plant
currently 31% operating nuclear plants with
almost 22GW of capacity
half of them are based on the same designs as the
Chernobyl plant
many are nearing their working lifetime
outlook
double nuclear output by 2020
an additional 28GW is planned
2.3 Renewable Energy
geothermal potential very high
solar power is reasonable despite countrey‘s
location
theoretical resource estimates oh high temperature steam,
water and brine at greater then 3 000 MWe
Highest potential in the southern regions
bad development of renewable energy projects
because of
Lack of a legislative mandate
Low electric and heat tariffs
Low public demand
Overall lack of investment capital due to economic
instability
3 Energy in foreign policy
Russia has recently been accused of using
ist natural resources as a policy tool to act
against offending countries
More than 55 energy incidents since 1991
More than 30 had political unterdpinnings
During the Cold War Russia never disrupted
energy supplies to the West
Russian officials like to remind the West of that
fact
3.1 Georgia (I)
January 2006 alleged North Ossetia
sabotage
two simultaneous explosions occurred on the
Mozdok-Tbilisi pipeline
electricity transmission line in KarachayevoCherkessiya also brought down by an explosion
October Several wrangels between
Moscow and Tbilisi with action like
arrests of four Russians accused of being spies
boykott of Georgian spirits
3.1 Georgia (II)
November 2006 Gazprom announced the
construction of a direct gas pipeline to South
Ossetia
work on the pipeline started just before South Ossetia‘s
referendum on separating from Georgia (Nov. 12)
Gazprom doubled price of gas to $235 per 1 000 cubic
meters
highest among CIS countries
forced Georgia to search for alternative energy supplies
Tbilisi aggread to buy enough Azeri gas from Turkey to help
meet its energy needs für 2007
3.1 Georgia (III)
August 2008 military conflict between
Russia and Georgia over the Autonomous
region of South Ossetia
had been independent from Georgia since early
199s
is likely to shift the balance of power between
the main players
influences the formation of future Caspian and
Russian energy sector
3.2 Ukraine (I)
March 2005 start of Russian Gazprom and Ukraine over
natural gas prices
much of the gas delivered to Ukraine originates in
Turkmenistan
is cheaper but must transit through Gazprom-controlled
pipelines
beginning of 2006 Russia greatly increased the price of
gas for Ukraine
to bring it in line with market values
Kiew and Moscow settled on a five year deal
shoud raise the price of Ukraine‘s gas to $95 per 1000 cubic
meters
Russia has accused Ukraine of siphoning off its Europebound gas in the past
3.2 Ukraine (II)
Russia and Ukraine were unable to reach an
agreement
January 1, 2006 Russia cut gas exports to
Ukraine
supply was restored on January 4
preliminary agreement was settled
other disputes
October 2007 and January 2009
Disputes resulted in 18 European countries reporting major
falls or cut-offs of their gas supplies from Russia
transported through Ukraine
Supply restarted on 20 January 2009, fully restored on 21
January 2009