Since the breakup of the Soviet Union, the world has watched Russia flex its natural gas muscle while it stumbled in the oil markets. Now Russia’s restructuring of its oil exports has finally pushed Russia into the sustainable role of global oil power, according to a new multi-client study by ESAI Energy, entitled Russia Comes of Age: Restructured Exports Strengthen Russia’s Hand in Oil Markets.
From 2000 to 2004, flourishing production increased Russia’s crude oil exports to countries outside the former Soviet Union from 2.5 to 4.3 million b/d. During the same period, Russia began the process of restructuring its exports. Russia Comes of Age explains this process, the upcoming last steps in this strategy, and projects the impact to 2015.
The study addresses:
- Key infrastructure such as the Baltic Pipeline System-1 Pipeline that lifted Russia’s market share in Northwest Europe and enabled Russia to gain a foothold in the US
- Subsequent oil export infrastructure such as the ESPO pipeline, with seaborne exports to Asia and an overland offshoot to China
- Key tax policy decisions favoring upstream development over the refining sector
- New export duties shifting profitability and investment to upstream development. As a result, Russia will sustain crude exports for years to come
- Completion of the Baltic Pipeline System-2 Pipeline, increasing seaborne exports to Northwest Europe and North America
- Extension of the ESPO Pipeline to Kozmino Bay and the doubling of seaborne exports to the Asia Pacific Market
- Still untapped potential in the West Arctic and a Northern Route to Asia
Russia’s growing presence in the European, Asian and even North American market will enhance its power in global oil supply and pricing in both the Atlantic and Pacific markets. Russia Comes of Age: Restructured Exports Strengthen Russia’s Hand in Oil Markets projects the impact on markets in terms of volume, geography, infrastructure and quality through 2015. Moreover, it projects the impact on Caspian oil headed for the Mediterranean.
This readable study comes with relevant data in excel and is available immediately for $2750. Current ESAI clients receive a 10 percent discount. To order your copy, email Tom Lovett , call 1-781-245-2036 or fill out the contact form below.
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