1 / 20

Energy security III

Energy security III. 6th July 2011. Russia – energy power between Europe and Asia. Energy consumption 58% natural gas 14% oil 16% coal 6% hydropower 6% nuclear energy Other renewables

kenton
Download Presentation

Energy security III

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Energy security III 6th July 2011

  2. Russia – energy power between Europe and Asia • Energy consumption 58% natural gas 14% oil 16% coal 6% hydropower 6% nuclear energy Other renewables Russia is 2nd largest consumer of natural gas in the world (hugh deposits, subventions, regulation of prices) Sharp fall of energy consumption (14%) in the 1990´s, after 2000 – increase 3rd largest producer of greenhouse gas emissions Export of fossil fuels counts for 40% of state budget´s income, for balanced state budget Russia needs oil price in world market to be 70 USD/barel at least

  3. Russian oil and gas sector • After USSR disintegration – privatisation, investments, Western management (esp.in oil industry) X transport under state control (Transneft) • Different character of privatisation in gas sector – Gazprom: only partial privatisation, infrastructure in Gazprom´s hands • After 2001 state´s share in Gazprom incresed to 51% • 2nd biggest gas producer: Novatek (competition for Gazprom) • After 2004 restructuralisation of oil sector: rise of state companies • Legislative changes – access of foreign investments to Russian oil sector limited • Changes after financial crisis

  4. Russian oil sector • 7th largest proven world deposits (after SA, Iran, Irak, Kuwait, UAE and Venezuela) – 5,6 % of world oil deposits • Intensive production (2009 – 1st among world producers, SA 2nd) • 2nd biggest exporter (after SA) • Largest deposits in Western Siberia (2/3 of the overall Russian extraction X gradual exhaustion of the deposits) • New deposits in Eastern Siberia, Far East, Caspian Sea, Sachalin and Yamal peninsula

  5. Russian oil sector • Most important producing companies SIBUR (under Gazprom´s control) Rosneft Lukoil TNK/BP

  6. Odessa-Brody-(Plock): project of diversification in oil • Originally project of diversification of oil deliveries to Gdansk in Poland • The pipeline from Odessa port to Brody in Western Ukraine - planned to be extended to Plock in Poland and possibly to Gdansk port to transport Caspian oil (an alternative supported by EU) • Role of former Russian oil tycoon Khodorkovski in that project • After the Yukos affair Russia interested in using this route for deliveries of Russian oil further to the West • Accord with Kuchma´s Ukraine (TNK-BP, Lukoil) to use the reverse flow of the pipeline in direction Brody – Odessa • 2010/2011 – Ukrtransnafta company planned to reverse the flow again to transport oil from Azerbaijan (also possible deliveries of Russian oil to Druzhba in this way) • Ukraine, Belarus – speculations about using Odessa-Brody pipeline for diversification of oil deliveries

  7. Oil: planned projects • Burgas – Alexandropolis (cooperation Russia, Bulgaria, Greece – project of Trans Balkan Pipeline), Russian and Kazakh oil; 2009 – problems • Samsun – Ceyhan (ENI + Turkish company) • Railway transport (Latvia, Estonia, China)

  8. Russia – gas sector • 23,7% of all world natural gas reserves • Former world´s biggest producer (2009 USA overrun Russia with shale gas), biggest gas exporter worldwide • 95% of all the deposits in Siberia (Urengoy, Medvezhie, Yamburg – declinig production) • Perspective deposits – Zapolyarnoye, Yamal, Sakhalin • Most important importers of Russian gas: mainly European states (Germany, Italy, Ukraine, Turkey, Belarus, Central Europe)

  9. Gas: Important projects • South Stream Through Balkan Peninsula (to Bulgarian coast) to Europe (one line to Italy, the second to Serbia and potentially to Hungary) Direct competition for Nabucco project Investors: Gazprom + ENI • Altay pipeline to China – first deliveries were planned for 2015 • 2009 – first deliveries of Russian LNG (to Japan, South Korea, China, Tai-wan and India)

  10. Russian oil and gas sector - problems • Lack of investments • Non-transparent privatisation and later state interventions (Yukos, Sibneft) • Difficulties with investment to upstream • Tax evasion • Stagnation of the extraction (depletion of current deposits, lack of investments to new deposits, complicated extraction in Russian northern regions) • Subsidised prices of gas for households

  11. Coal • 19% of world reserves, 4% of world extraction • 5th biggest producer, 3rd biggest exporter, 20% of the production is exported, mostly to Europe • 28% of electricity generated from coal in Russia (decreasing consumption from 1950´s in connection with rising usage of oil, gas and nuclear energy) X Energy strategy by 2030 counts with significant increase in the share of coal in electricity generation

  12. Coal • Coal sector (in contrast with oil and gas) without significant state interventions X 1990´s – support of the mineworkers out of social reasons • Coal deposits are often in the hands of the owners of metallurgic industry companies (cheap supplies of resources) • Railway • Environmental impacts • New deposits in remote parts of the country (like Far East, Siberia, Arctic area)

  13. Nuclear energy • In USSR first nuclear power plant in the world (Obninsk - 1954) • 25 reactors in the 1980´s X Chernobyl trauma • New stimulus in the end of 1990´s – export of reactors to China and India • State-owned giant Rosatom

  14. Renewables • Goal – to increase the share of renewables by 2020 to 4,5% and reduce carbon dioxide emissions • Plans to build wind power plants in northern regions and Far East • Big share of hydropower: Russia – 5th world biggest producer of electricity using hydropower plants • 40% of Russian territory covered by forests – potential for biomass production • Southern regions – potential to produce solar energy • Geothermal energy used from 1960´s (esp.in Northern Caucasus and Far East), plans to expand production of geothermal energy • Tidal power – in Arctic regions

  15. Electricity • Russia – 4th world producer of electricity 68% heat power plants 21% hydro power plants 10% nuclear power plants 1% from renewables • 60% of all electricity generated in gas power plants • Sector dominated by RAO-UES (52% share of state) – controls 70% of distribution, rest under control of regional distributors, since 2002 restructuralisation and privatisation of RAO-UES Problems of low energy efficiency

  16. Russia – national champions • Gazprom The richest company in Russia, 25% share in state budget income, in 2009 15% share in world gas extraction, 80% share in Russian gas extraction, around 400 000 employees Gazprom based on Soviet ministry for gas sector 1990´s – important role of prime minister Chernomyrdin, 1992 – beginning of privatisation, 35 – 40% state share X radical changes after Putin´s accession Since 2000 D.Medvedev chief of managing board, Alexey Miller chief of executive board Reform, better control of particular components, Liberalisation of the access to the pipeline network, increase of the share of „non-Gazprom“ gaz transported through the system (unbundling?) • Novatek (Yamal LNG, cooperation with French Total, relations with Gazprom, but also critique)

  17. Russia – national champions • Oil Rosneft • Rosneftegaz = 1995 Rosneft as joint-stock company • Beginning of 21st century – growth, leader in oil extraction in Russian territory • More than 75% owned by Russian state, chief of managing board – deputy of Prime Minister Igor Sechin, also other members of managing board are former workers of ministeries or presidential administration, other are simultaneously intersted in other state companies like Transneft or Zarubezhneft • 2010 – government announced the intent to privatise 25% share of Rosneft • Activities in Kazakhstan, Algeria, Germany, China, cooperation with BP, Exxon Mobile in Black Sea region etc.

  18. Russia – national champions • Lukoil Important role of Vagit Alekperov 1993 – joint-stock company, Western-style managing model Kremlin´s support – Chernomyrdin and his vision or oil monopoly = since the very beginning Lukoil was the biggest oil producer in Russia 18% of Russian production (2,3% of world oil production), 19% of Russian oil purification Private oil company with dominant minor owners and also foreign shareholders (ConocoPhilips) X Members of managing board were mostly state officials in the past 1990´s – expansion to Europe X now turn tu Asia and Far East (e.g.Vietnam) • TNK/BP – no share of the state, disputes between Russian and British shareholders (attempts of the Kremlin to buy the whole Russian share? - acitivities of Gazprom do consolidate the whole share in its hands), Kovykta

  19. Russia – national champions • Rosatom Monopolist supplier of uranium for Russian power plants Extraction not only in Russia, but also abroad (Kazakhstan) Subsidiaries in Central and Eastern Europe, Central Asia, North Africa (engineering) Tvel – part of Rosatom, one of the world leaders in nuclear fuel production Atomstroyexport – building of reactors

More Related