Tuesday, October 02, 2007
Some Additional Points from the Energy Dialogue ...
--International companies are not likely to be able to acquire major assets in Russia today but can still invest and have smaller pieces. What remains unclear is whether international companies can trade expertise--particularly in making old wells more productive, helping to deal with losses caused by flaring, and to help bring new sites online--for a piece of the project.
--Russian production is leveling off in both oil and gas. And Russia may hit a crunch where rising demand at home, the need to fulfill contracts to Europe and loss of supplies from Central Asia may create a crisis.
--The long-term problem for Europe is not whether Europe is dependent on Russian gas, but whether Russia can keep up with the demand Europe is going to have for energy.
--We still don't think about energy in a global sense--supply and demand across the world in a single integrated system.