Russian and Caspian hydrocarbons: energy supply stakes for the European Union

The crisis between Russia and Georgia in August 2008 highlights the fragility and instability of transporting gas from the Caspian and Central Asia to Europe via the "Caucasus transit corridor". The feasibility of one of the EU's possible strategies for diversifying its energy supplies might now be called into question. The aim of this article is to examine the new strategies that could emerge in the producing countries as well as those of international oil companies, and then look at what the consequences might be as far as the EU's diversification strategy is concerned.ENERGY SUPPLY ; HYDROCARBONS ; DIVERSIFICATION STRATEGY ; EUROPEAN UNION ; CASPIAN ; RUSSIA ; INTERNATIONAL MARKET

The russian oil industry between public and private governance : obstacles to international oil companies' investment strategies

The low level of involvement by international oil companies in Russia seems difficult to explain given what development of its resources and production has to offer. There are still many restrictions and contradictions, born of the particular institutional and political environment of the Russian oil industry at the end of fifteen years of transition, that act as a bar to international integration. Three factors currently define the establishment of relations with foreign investors. First, because of the many different levels of negotiation with Russian companies, the State and the Regions, the decisions are based on complex relations between the various forces. Second, the reforms, and especially privatisation and the allocation of rights of ownership to deposits, are considered by sizeable sections of public opinion and many political classes to be illegitimate, thus making the issue of international investment and foreign presence still more complicated. Finally, the State's wish to take back the oil industry in order to use it to fulfil its economic and foreign policies is creating further uncertainty. These three elements seriously restrict the entry of international oil companies to the Russian market.industrie pétrolière;Russie

Gazprom's export strategies under the institutional constraint of the Russian gas market

Russia and its main gas company Gazprom, essential suppliers for the European gas market, are today at the centre of the debate surrounding the security of the European Union's gas supply. A variety of factors have focussed interest on the question of Gazprom's industrial strategies and more precisely :the Gazprom's ability to meet its future contractual commitments. The gas market liberalisation in Europe is bringing about some significant changes in the relations (especially contractual ones) that the EU had established with its main natural gas suppliers. The aim of this paper is to throw some light on how European gas market liberalisation is affecting and changing the strategies of one of the EU's essential gas suppliers, namely Russia. The export policies developed by Gazprom are however largely conditioned by the particular characteristics (essentially institutional) of its domestic market, not only in terms of supply and demand but also prices". It is important to take into account this aspect in order to understand the Russian gas export strategy.EXPORTATION ; NATURAL GAS ; RUSSIA ; GAZPROM ; CONTRACT

The viability of deregulation in the russian gas industry

Russia is the world's leading gas producer. But reforming the gas industry is currently one of the major challenges facing the Russian energy industry in order to pursue its development. Since 1991, the terms of the debate have scarcely changed: what level of deregulation is required, or can be introduced, in the gas industry? The reform project, actually discussed, is quite limited. This aim is to favour the development of competition on the Russian domestic market by creation of new producers. But it maintains the production-transport integration of Gazprom, the actual gas monopoly. Also, Gazprom will retain the monopoly on exports. So, the first stage of the reform, will only be the setting-up of a transparent and non-discriminatory transportation network for Gazprom, with regulated prices, and the creation of an unregulated market alongside a regulated market. But the issue of the reform begs a number of questions on the extent to which it will be accepted by the various actors involved at different levels.russie;reforme;industrie gaziere;déréglementation;gas industry;deregulation;russia

Towards a more coherent oil policy in Russia ?

Dans le nouveau contexte pétrolier mondial, la Russie tente de définir une stratégie pétrolière plus cohérente et plus équilibrée que celle qui a prévalu dans les années quatre-vingt-dix. Les échecs de la privatisation l'ont conduit à réévaluer en profondeur sa politique pétrolière. Aujourd'hui, deux modèles polaires s'affrontent : un modèle « type OPEP » et un modèle « type norvégien ». Le choix entre ces deux options détermine la position de la Russie vis-à-vis de la politique des prix de l'OPEP.politique pétrolière;Russie

Gas market developments and their effect on relations between Russia and the EU

The changes on the EU gas market are likely to affect Europe's relations with its natural gas suppliers who are facing increasing competition. Heading this list of producing countries is Russia. Gas relations between Russia and the EU are characterized by strong interdependence. But these relations are currently being hampered by serious lack of understanding, making it difficult for the two parties to reach agreement on a new energy partnership. The aim of this article is to analyse the effects of this new European gas context on Gazprom's strategy and how the issues of energy security and cooperation between Russia and the EU will be affected by this new order.INTERNATIONAL GAS MARKET ; ENERGY SECURITY ; GAS SUPPLY ; RUSSIA ; EUROPEAN UNION

The obstacles in the way of stabilizing the russian oil model

This article deals with the current change of the institutional and organizational framework of the Russian oil industry. Regarding this evolution, the main characteristic is the increasing involvement of national oil companies in the upstream activities. The point is to explain this reorganization by relying on the New Institutional Economics framework. These theoretical works highlight that institutional environment and governance structures complement each other. We argue that the current reorganization is an attempt to increase the coherence of the institutional arrangement governing the transaction between the Russian state and the private oil companies.Russia ; oil industry ; institutional coherence

European gas market : stakes and perspectives

World reserves of natural gas are abundant and expected to increase up to 2050. World gas production is projected to more than double between 2000 and 2050. However, regional disparities in gas reserves and production costs are expected to modify the regional gas supply pattern in 2050: about half of the total gas production will originate from the CIS and the Middle East.Important uncertainties remain on the EU27 gas demand and supply in the long term. For example, on one hand, the enlargement of the EU modifies the landscape. The question of the penetration of the natural gas in the energy balance is for a “new entrant” an important aspect of their energy policy. On the other hand, the liberalisation of the EU gas market may have important consequences on the strategies of gas producers like Russia.ENERGY ; INTERNATIONAL MARKET ; NATURAL GAS

The failure of introducing market institutions in a rent sector into an economy in transition

Privatisation is at the heart of the structural reforms for economies in transition. In theory, the main aim of privatisation is to change the structures of corporate governance in order to improve the efficiency of the enterprises and to assure their long-term future in a competitive environment. The adoption of formal market institutions would be sufficient to secure the new property rights, in particular because the new holders of the rights to control assets would have a great incentive to encourage the definition of new judicial rules that would guarantee their rights of ownership. In Russia that didn't happen.privatisation;changement institutionnel;droits de propriété;industrie gazière;industrie pétrolière

The liberalisation of the European gas market and its consequences for Russia

Russia is the world's biggest natural gas producer, with output of 581 bn m3 in 2001, and is also a key supplier of the European gas market (around 30% of current EU gas imports). Therefore gas exports rank with oil exports as an essential variable of Russian economic policy, and any institutional evolution of its gas export markets is crucial for Russia's economy as well as its gas industry. Liberalisation of the European gas market will have major consequences for main suppliers, and therefore for Russia.LIBERALISATION ; EUROPE ; GAS MARKET ; RUSSIA