Russian Oil and Gas Industry: News

Austin - you are the real treasure of this forum  

tnx man.

Final nail in the coffin of Nabucco saga

Azeri consortium opts for TAP over Nabucco pipeline

Azeri (Shah Deniz company) opted for TAP project over Nabucco project.



Shah Deniz company:

- 25% BP
- 25% Statoil (Norway)
- 10% Lukoil
- 10% SOCAR (Azeri)
- 10% Total (French)
- 10% NIOC (Iran)
- 10% TPAO (Turkey)

That company choose TAP (Switzerland (Axpo), Norway(Statoil), German(EON) over Nabucco West.


TAP project




according to initial EU/USA plan Nabucco was to collect gas from Turkmenistan and Azerbaijan giving those countries necessary means to lead
its policies independent from Russia. It was kind a plan to isolate Russia from central Asian countries and to relieve EU from dependency on Russian gas.  


Later Nabucco was altered without Turkmenistan after it repeatedly failed to provide answer to EU proposals.

after that all is history - after 20 years Nabucco project is a failure as has failed to secure gas and TAP provides no challenge to South Steam as its capacity

is 6+ times larger than TAP and therefore TAP can not provide any meaningful amount of gas to EU customers.

Good post , More on this i will post.

It seems in future EU will have more of LNG too so Gazprom is building terminals for LNG and also Rosneft too.

Another post on this issue

Nabucco: How the pipeline became a pipedream
Nabucco was the lynchpin of America’s grand strategy to isolate Russia, but in the end the hunter became the hunted.

Russia’s energy strategies in the Arctic

More than 60 percent of Arctic oil and gas resources are deposited in areas which belong to or are claimed by the Russian Federation. It accounts for 375 billion barrels of oil. According to BP's Statistical Review of World Energy, this is much more than the oil reserves of Saudi Arabia and the gas reserves of Qatar taken together. More than 200 prospective (D1, D2, and D3 categories) and more than 20 proved or expected (A, B, C1, and C2 categories) oil and gas fields are located in the Arctic Ocean, primarily in the Barents Sea and Kara Sea.

New large oil and gas contracts - Rosneft with Venezuela. (Bolivia invited Gazprom)

More than oil

http://sdelanounas.ru/blogs/36060/

Ernst & Young Arctic Oil & Gas

http://www.ey.com/Publication/vwLUAssets/Arctic_oil_and_gas/$FILE/Arctic_oil_and_gas.pdf

Russia has officially disclosed its Oil and Gas Reserves today , Any news on the numbers and how it compares with the projection ?

Ok found it

Russia’s recoverable oil reserves in ABC1 categories at 17.8 bln tons

MOSCOW, July 12 (Itar-Tass) - As of January 1, 2013, Russia had 17.8 bln tons of recoverable crude oil in the ABC1 categories, Natural Resource Minister Sergei Donskoi said Friday at a conference on the reserves of oil. The oil reserves of the C2 category are estimated at 10.2 billion tonnes.

Reserves in gas caps of oil fields falling into the ABC1 categories stood at 48.8 trillion cubic meters and in the C2 category, at 19.3 trillion cubic meters, he said.

Mother (Russia) lode: Vast extent of oil, gas reserves revealed for first time

According to declassified data Russia holds 17 billion tons of oil and 48 billion cubic meters of gas. Moscow believes revealing the extent of the vast reserves will lead to a surge of investment in the extraction and production of hydrocarbons.

The country’s recoverable oil reserves in the C1 category (proven reserves) totals 17.8 billion tons; category C2 (preliminary estimated reserves) is 10.2 billion tons, according to data collected on January 1, 2012.

Meanwhile, gas reserves were equally bountiful at 48.8 trillion cubic meters C1 category; gas stores of the C2 category is estimated at 19.6 trillion cubic meters.

The Minister of Natural Resources of the Russian Federation Sergey Donskoy said the resource potential for these kinds of mineral resources remains one of the most significant in the world. "I am convinced that the opening of this data will give a powerful impetus to investment in reproduction and production of hydrocarbons,” he said. He also added that Russia’s potential for the mineral resources is one of the most significant in the world.

Russia’s available hydrocarbon potential will be able to provide the nation’s growing economy for 30 years, according to expert estimates put out by the Russian Ministry of Natural Resources and the Federal State Commission on Mineral Reserves.

Meanwhile, increased exploration of mineral resources consistently exceed the level of production, the minister said, noting that last year 49 oil fields were discovered.

Last week, Prime Minister Dmitry Medvedev signed a government decree that removed the lid of secrecy on oil reserve data.

Earlier, President Putin, explained the necessary level of cooperation that exists between the domestic fuel and energy sector and foreign investors, called the former level of secrecy "an obvious anachronism."

Putin also called on the development and approval of a new classification of Russian oil and gas reserves as close as possible to international standards.

Before the release of the official data Russia was placed second in the world by gas reserves after Iran, with 32.9 trillion cubic meters, and eighth by crude oil reserves, after Venezuela, Saudi Arabia, Canada, Iran, Iraq, Kuwait and UAE, with 11.8 trillion cubic meters of oil.

Check the news and most important the comment

http://sdelanounas.ru/blogs/36708/

Austin wrote:Check the news and most important the comment

http://sdelanounas.ru/blogs/36708/

Thats 56% more than the maximum estimate (LINK) up to now and sufficient for 57 years by today oil production. (Arctic not taken in the account).
It also places Russia right after Saudi Arabia with 181.132MMbbl  

(counting in 100$/barrel) That is in terms of money 1.81e13 $   meaning 18 100 000 000 000 $   meaning 18.1 trillion $ meaning in 57 year Russia will earn each

year 317 bin $.

If we take in the account that tax is 55% that leaves Russian government 174.5 bin $ for the next 57 years.

Now we can play and say that during Russian rearmament it will spend 23 trillion rubles =  roughly 700 bin $ / 174.5 bin $ = 4 years.

So if Russia would for the next 4 years spend all its money collected throughout oil taxes on military buildup it would take her only 4 years to complete the task. (even less since now is 2013)   

And all this analysis does not take in the consideration GAS !

Russian gas reserves just increased 2.05 TIMES in comparison with projected reserves LINK and that would be sufficient by todays gas production in Russia for 103 years (without finding any new field ..... hint Arctic)

But what is most important in terms of money that would equal 8,8e12 $ which would make 8 800 000 000 000 $ or 8.8 trillion $ which in 103 year would give  85.57 bin $ per year and if we add taxes in the equation of roughly 45% we would get 38.5 bin $ per year on top of 174.5 bin $ from oil = 212 bin $ per year for at least 57 years.

As Putin said that oil and gas sector brings 50% of government budget and budget for 2012 was 414 bin $ and 50% from that is 207 bin $ which is very
close to my calculation = 212 bin $ per year.

- so Russia is increasing production as fast as it can to get most of the world energy market (oil, gas, nuclear, and lately still noticeable - green)
- nuclear / green technology will free more oil and gas in Russia for export
- Russia can freely look at the future planing how to spend every year more and more money from oil and gas in a smart and productive way
- getting more from cooperation with other countries with huge reserves (Venezuela and Iraq) hopefully (Iran, Brasil, Australia, Vietnam etc)
- developing arctic and by doing so developing new technologies (ship NPP, new icebreakers, investing in Murmansk, expeditionary military forces, new satellites etc)

Viktor , Good Back of the paper calculation  

I should add that Russia would need couple of trillion as investment to find the reserves , build supply chains like pipeline , rigs for exploration .......specially in difficult to get oil like tight oil and at Arctic its expensive to drill oil.

Are we sure the disclosure of ABC and C1 reserves does not include Arctic and Shale Oil Reserves that US EIA recently disclosed ?


I think the first step they should take is for all public transport , rails and road they should convert to Gas/CNG which is environmently friendly and cheaper ...... also encourage sale of natural gas cars etc ......thats the best way to use reserve.

Not to mention electrcity generation from Gas , Plus build more nuclear reactors

Basicly free up as much Oil as possible for export and dont sell raw crude but refine it and sell it as value added products to generate more revenue.

Finding reserves is about to get MUCH MUCH cheaper....

Viktor, how many times a day am I supposed to vote for you? Unfortunately, this forum allows only 1 per day.

Same goes to you Austin.

Good job guys. Thanks for posting all the good stuff on the various threads.

i think this is the first time in history that Russia has put out its reserve estimations officially.  
Theyve been pumping it so much and still have allot left . 
There is a question of extraction costs dough...

Rpg type 7v wrote:i think this is the first time in history that Russia has put out its reserve estimations officially.  
Theyve been pumping it so much and still have allot left . 
There is a question of extraction costs dough...

The reason for officially submitting their reserves is pretty much to help promote foreign investors to start finding ways to extract it for cheap.

This Interview is very informative please read it in full "Interview with Alexei Vashkevich, head of the Gazprom Neft Directorate of Geological Exploration and Resource Base Development "

There is no alternative to the alternative


Something that really struck out was this statement

We define the second cluster as consisting of the so-called unconventional reserves that we identify based on the history of oil genesis. These reserves essentially consist of oil source rock, including the Bazhenov-Abalak suite as well as deposits whose geological structure we are just beginning to understand, for example, Paleozoic deposits. There are estimates of the unconventional reserves resource potential that differ from one another by a factor of several times. The estimate that one commonly hears is 100 billion tons of oil equivalent across Russia. Furthermore, a significant part of those reserves, approximately 20-30 billion tons of oil equivalent, is concentrated in Khanty-Mansi Autonomous Okrug-Yugra.  

From the blog comment http://sdelanounas.ru/blogs/36708/ (user78)

not 30, and 50-57 years - assuming no new discoveries, as 28.8 billion tons of reserves and production - 0.5 billion tons per year.

According to different estimates of new oil fields in Russia only in the Arctic and the Khanty may be another 55-120 billion tons of oil (100-240 years of production). And this is without any shale gas and oil, which we also fill up.

In the Russian place I wouldn't exploit oil rocks. Canada do this and the process is very toxic and do very big damage to tundra environment.

medo wrote:In the Russian place I wouldn't exploit oil rocks. Canada do this and the process is very toxic and do very big damage to tundra environment.

If you where referring to oil sand that process has economic sense only when price of oil is above 100/105 $. Still with todays oil prices that does not pay off.

Canadians will have to wait a bit longer (now that huge oil reserves are found in Venezuela, Russia, Australia) before oil prices because of shortages jump to 150

$/barrel. If you where referring to shale gas that too did not meat its economic cost efficiency up to now (more money is spend on extraction and distribution than

what is worth).

Igor Sechin: Oil reserves on the Arctic shelf of eastern Siberia and the Far East to the 14 billion tons of confirmed

Yuzhno-Sakhalinsk, on July 16. / ITAR-TASS /. The head of "Rosneft" Igor Sechin expects that exploration in the Arctic shelf of East Siberia and the Far East will confirm the oil reserves to 14 billion tons.

"Rosneft as a whole on the Arctic shelf of eastern Siberia and the Far East has 20 license areas, which are currently being implemented large-scale exploration," - said Sechin during a video conference chaired by President Vladimir Putin to the platform, "eagle", located in the Sea of ​​Okhotsk Sea.

He explained that currently the Magadan offshore geological surveys carried out in the framework of the projects "Magadan-1", "Magadan-2", "Magadan-3".

"Exploration is underway on the Sakhalin shelf, in the license area, Astrahanovskom Sea - Nekrasovskiy. Hopefully, as a result of all this work will be supported by forecasts for exploration reserves of up to 14 billion tons of oil equivalent," - said the head of "Rosneft".

So Arctic has 102 bbl of Oil as per Rosneft what about Gas ? Or does the Russian news says Oil & Gas equivalent

Europe’s Energy Security: Options and Challenges to Natural Gas Supply Diversification

http://www.fas.org/sgp/crs/row/R42405.pdf

^^ Good Post

Analysis – Little chance of Europe breaking Russia’s gas dominance

russia should be using that money to build new renewable sources of energy as fast as possible.

Gazprom Says this

Shale is dead? Long live shale!