icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
23 Oct, 2008 02:04

Energy week sees focus on investment in gas production

Stronger together – the message from the first day of Energy Week in Moscow. Representatives of OPEC are talking to Russia's government about the organisation's efforts to support the oil price, possibly by cutting production.

The International Energy Forum brings together Opec, with ministers from non-member countries like Russia, China and India. It admits global demand for oil is already decreasing, dragging the price below $69.  The gas price is likely to follow – and Nobuo Tanaka, Executive Director of the International Energy Agency fears it will hit investment.

“The gas price has declined a little bit but eventually I think we see that there is very strong demand for gas from Europe. We are very much concerned if there is any restriction, or that limitations on investment happen.”

However, falling investment in future production can be solved, despite the current crisis – according to Ernesto Lopez Anadon, President of  the International Gas Union.

“I think its going to be a slowdown of production and consumption but also an opportunity for the producing countries, companies to update investment and be ready for the new world expansion.”

The plan to create an alliance of gas exporters – Iran, Qatar and Russia – has been revived in recent days – offering the opportunity to cooperate in exploration, investment and pricing. But analysts say Russia, may have little use for a gas cartel.  Its gas is largely sold on long-term contracts, while customers like France and Germany maintain underground gas storage – insulating them from short term price fluctuations.

Gazprom muscles up with $10 Billion 1Q 2008 Net Profit

Gas troika to become new player in energy

Russian Duma holds budget hearing as oil slide threatens funding basis