Russia Seeks Leading Energy Role
Gas and Oil Exports Target China, Japan, India, South Korea, Balkans
Attempting to enhance their global role as a major energy supplier, the Russian government recently announced new plans to supply oil and gas to Asia and the Balkans.
Russia continues its drive to be a world leader in energy supplies. Currently, Russia is the world's largest exporter of natural gas and second largest in oil exports.
Growth Plans for Russian Oil and Gas Exports
The Russian government has unveiled new plans to supply natural gas to China. Phase 1 of the plan, which is scheduled to begin commercial operations in 2010, will link Russia's western Siberia pipeline to China's Xinijang region with an expected annual capacity of 30 billion cubic meters. Phase 2 will connect pipelines in eastern Siberia and Sakhalin Island to China's Heilongjang province in 2016, carrying an estimated 38 billion cubic meters per year.
Attempting to broaden their oil exports, Russia is building a 4,000 km pipeline connecting oil fields in eastern Siberia to an export terminal at Kozimo Bay, overlooking the Sea of Japan. Russia hopes this project will enable them to easily ship oil to energy-deprived locations across Asia. Phase 1 of this plan is due for completion towards the end of 2008 and will allow China to construct a spur pipeline. This will allow China to deliver up to 300,000 barrels of oil per day deep into the country. The entire project is slated for completion sometime in the next decade.
European Issues with Russian Policies
Back in Europe, Russian President Vladimir Putin recently met with the leaders of eight Balkan countries, asking that they trust Russia as a reliable energy supplier. At the meeting, Putin presented a new project to build a gas pipeline under the Black Sea from Russia to Bulgaria. The pipeline would also include branches to Austria and Italy. Romania's pro-Western President Traian Basescu is suspect of Russia's intentions. He feels that Russia may use its energy supplies as an instrument of political pressure. Russia says they are merely trying to optimize the reliability of energy supplies and increase their exports.
Can Russia Meet the World's Energy Needs?
The key question is whether Russia will be able to produce enough oil and gas to become a large-scale supplier of these resources to Asia Europe, and the United States. Many of Russia's gas fields in western Siberia are old and declining in production. Older oil fields are also beyond their peak production levels. To accomplish their goals, Russia must soon find new oil and gas reserves. They are currently looking at promising oil sites in eastern Siberia and Sakhalin Island. The Russian government feels that supplies at these locations will be enough to meet the immediate demands of Asia and the U.S. for the foreseeable future.
References
Pirog, Robert. "CRS Report for Congress - Russian Oil and Gas Challenges." Congressional Research Service. June 10, 2007.
