Assignment No’-1OIL Trade Pattern of Russia Submitted By:- Rahul Kumar (22).
OUTLINERUSSIA• RUSSIA CRUDE OIL EXPORT• TOP THREE EXPORT ROUTES• PROPOSED PIPELINES• ESPO PIPELINE
RUSSIA GDP(PPP) $2.414 trillion GDP(GROWTH RATE) 4.3% GDP-PER CAPITAL $17,000 UNEMPLOYMENT 6.6% RATE INFLATION 8.4% LABOUR FORCE : AGRICULTRE 9.8% INDUSTRY 27.5% SERVICES 62.7%
Russia in Brief• Russia holds the worlds largest natural gas reserves, the second largest coal reserves, and the eighth largest crude oil reserves.• Russia was the largest producer of crude oil in 2009, surpassing Saudi Arabia.• Russia has the largest natural gas reserves in the world and it is the second-largest producer of natural gas.• Russia is one of the top producers and consumers of electric power in the world, with more than 220 million kilowatts of installed generation capacity.• Russia’s Transneft currently has a monopoly over Russia’s pipeline network.
Top Three Export Routes via Transneft’s Network toMarkets Outside the Commonwealth of IndependentStates, 2000 and 2011(million tons)Region 2000 2011Baltic Sea 20.8 70.1Druzhba 52.4 55.7Black Sea 43.1 46.7
Proposed Oil Pipeline Routes and Pipeline Expansion Projects
Proposed Oil PipelineNord StreamNord Stream is Russia’s and certainly Europe’s major ongoing project designed to feedGermany and then from here connect to Belgium, the UK, Denmark, the Netherlands,France, and the Czech Republic, with Russian gas. It consists of two parallel 48 in. pipelinesacross the Baltic Sea, each 1224 km with a capacity of 27.5 billion m3/yr. The pipelineshave certain political significance as they enable Russia to bypass Ukraine and Poland,while satisfying 25% of the EU’s additional needed gas imports by 2030.South StreamSimilar to Nord Stream, the South European Pipeline or South Stream is meant to bypassUkraine when exporting Russian gas to Europe (Italy and Austria) via the Black Sea. Havingestimated cost of US$ 14.4 - 20 billion, its construction has been delayed from the initially-planned 2010 to 2012 for completion in December 2015.The pipeline construction will start in December 2012 (earlier than decided in 2011) with adesigned maximum throughput of 63 billion m3/yr.
Samsun - Ceyhan oil pipelineRosneft and Transneft are seeking a major stake (25%) in a planned Turkish pipeline, theSamsun-Ceyhan oil pipeline, to be built by Turkey’s Calik Holding and Italy’s Eni. Linkingthe Turkish ports of Samsun on the Black Sea and Ceyhan on the Mediterranean Sea, itsplanned capacity is 50 million tpy to be supplied by Russia (25 - 30 million t) and certainCaspian oil exporters such as Kazakhstan.Russian - Chinese gas pipelineDespite the success in securing piped oil exports to China (Skovorodino-Daqing), the fateof Russia’s efforts to secure a piped gas export agreement with China is still unclear.After years of negotiations between Moscow and Beijing, the two sides are yet to agreeon the pricing of gas to be exported via the envisaged pipeline. As per its November2011 agreement with Turkmenistan, China’s access to Turkmenistan’s gas at a reportedprice (US$ 250/1000 m3) significantly lower than that of Russia (by US$ 150) is a majorobstacle. Other obstacles include Beijing’s concerns about over reliance on Russia forenergy and also Russia’s reliability as a gas supplier as evident in its closing down its gaspipelines to Europe via Belarus and the Ukraine in the recent years.
Russian Proposed Oil and Natural GasPipelines to China
ESPO (Eastern Siberia Pacific Ocean Oil Pipeline)East Siberia Pacific Ocean (ESPO) is a major undertaking by Russia designed to carryRussian crude to the Asian-Pacific markets (China, Japan and South Korea) and the US.The first stage of the 4857 km pipeline, the Taishet-Skovorodino line (2757 km; 48 in.;US$ 12.27 billion) connecting Russia’s Irkutsk to the Amur Region via Yakutia (30 milliontpy capacity) went online in January 2010. Scheduled to go online in December 2012, itssecond stage, the Skovorodino-Kozmino (2100 km; 48 in.), will enable Russia to export alarger volume of oil (30 million tpy) to the Asian-Pacific countries. Currently, in absenceof this link, oil (15 million tpy) is transported by rail from Skovorodino to Kozmino’s oilterminal on Russia’s Pacific coast from where the oil is exported to the designatedbuyers by oil tankers. ESPO’s completion will help Russia establish itself as a major oilsupplier to the Asia-Pacific economies
Major Russia Gas Basin• RussiaUrengoy gas field (385×1012 cu ft (10,900 km3))• Hamburg gas field (198×1012 cu ft (5,600 km3))• Bovanenkovskoe field (166×1012 cu ft (4,700 km3))• Leningradskoye field (151×1012 cu ft (4,300 km3))• Rusanovskoye field (151×1012 cu ft (4,300 km3))• Zapolyarnoye gas field (132×1012 cu ft (3,700 km3))• Shtokman field (113×1012 cu ft (3,200 km3))• Arctic field (104×1012 cu ft (2,900 km3))