ECRPonEnergySecurity 27 28Feb07

An Insight into the Priorities in Energy Security: 

An Insight into the Priorities in Energy Security & the Supply of Caspian Hydrocarbons to the World Market

ENERGY SECURITY : 

ENERGY SECURITY No generally recognized definition, so far Was ist das? (What is that?)

Analysis: Supply and Demand equation: 

Analysis: Supply and Demand equation Consuming countries : Energy security = Security of supply Энергобезопасность это бесперебойность поставок ( безопасность предложения) Produsing countries : Energy security = Security of demand Энергобезопасность это надежный спрос (безопасность спроса) “G-8” : Energy security = Security of supply + Security of demand Энергобезопасность это безопасность спроса и предложения

Synthesis of Definitions : 

Synthesis of Definitions The global nature of these challenges and the growing interdependence between producing, consuming and transiting countries require strengthened partnership between all stakeholders to enhance global energy security Global energy security means a set of measures intent to ensure an optimized balance of supply and demand on the world market with due account to the interests of both consumers and producers.

Challenges of Global Energy Security : 

Challenges of Global Energy Security high and volatile oil prices Increasingly poor geographical correlations between energy sources and users The growth in demand and in the increasing import requirement of each of the main consuming regions ( the United States, Japan, China and Europe ) potentially can make the access to those resources an issue of strategic competition enormous investment requirements along the entire energy chain the need to protect the environment and to tackle climate change; the vulnerability of the critical energy infrastructure; political instability, natural disasters and other threats

RUSSIAN INPUTS TO THE GLOBAL ENERGY SECURITY : 

RUSSIAN INPUTS TO THE GLOBAL ENERGY SECURITY Increasing the production of hydrocarbons and replacing the extracted volumes by new proved reserves Increasing the export of gas and oil to the word market Enlarging the export transportation capacity, pipelines and terminals Diversifying the export routes for gas and oil supplies to world market Facilitating transit transportation of hydrocarbons from the Caspian region to the world market

Slide7: 

RUSSIA - A MAJOR ROUTE IN TRANSPORTATION OF CASPIAN HYDROCARBONS

Black Sea Crude Oil Balance in 2006, mln tons: 

Black Sea Crude Oil Balance in 2006, mln tons Bosphorus Straits 100 MT Yuzhnaya Ozereyevka (CPC) Refineries of Romania & Bulgaria 11 Mt Total deliveries to the Black Sea 111 Mt Batumi Supsa Tuapse Novorossiysk Constanta Bourgas Theodosia Yuzhny Odessa 6 7 7 7 6 31 49 5 11 Source: Pipeline Transport Company OAO “Transneft”, 2006

Slide10: 

Bourgas-Alexandroupolis Pipeline Project Source: Pipeline Transport Company OAO “Transneft”, 2006

Oil Production ofAzerbaijan and Kazakhstan (mln tons per year): 

Oil Production ofAzerbaijan and Kazakhstan (mln tons per year) Sources: International Energy Agency (IEA) Oil Information, 2006 Russian State Energy Agency “Rosenergo”, Preliminary data for 2006

Oil Production Azerbaijan, Kazakhstan and Russia (mln tons per year): 

Oil Production Azerbaijan, Kazakhstan and Russia (mln tons per year) Sources: International Energy Agency (IEA) Oil Information, 2006 State Statistics Agencies of Azerbaijan, Kazakhstan and Russia

Oil Production Azerbaijan, Kazakhstan, Russia and Saudi Arabia  (mln tons per year): 

Oil Production Azerbaijan, Kazakhstan, Russia and Saudi Arabia (mln tons per year) Sources: International Energy Agency (IEA) Oil Information, 2006 Russian State Energy Agency “Rosenergo”, Preliminary data for 2006

Gas Production ofAzerbaijan and Kazakhstan(bln cub m per year): 

Gas Production ofAzerbaijan and Kazakhstan (bln cub m per year) Sources: International Energy Agency (IEA) Oil Information, 2006 Russian State Energy Agency “Rosenergo”, Preliminary data for 2006

Gas Production of Azerbaijan, Kazakhstan, Turkmenistan and Russia in 2005 (bln cub m): 

Gas Production of Azerbaijan, Kazakhstan, Turkmenistan and Russia in 2005 (bln cub m) Sources: International Energy Agency (IEA) Natural Gaz Information, 2006 State Statistics Agencies of Azerbaijan, Kazakhstan and Russia

Gas Production of Azerbaijan, Kazakhstan, Turkmenistan and Russia in 2006 (bln cub m): 

Gas Production of Azerbaijan, Kazakhstan, Turkmenistan and Russia in 2006 (bln cub m) Sources: Russian State Energy Agency “Rosenergo”, Preliminary data for 2006

Facts in the Ground (world proven gas reserves in 2006): 

Facts in the Ground (world proven gas reserves in 2006) Source: BP Statistical Review of World Energy 2006

CONCLUSIONS  ( Energy security and Oil Supply ) : 

CONCLUSIONS ( Energy security and Oil Supply ) Russia advocates a cooperative approach towards the issues of global energy security The world is interested in the stability of Russian supplies and, Russia remains a reliable partner that behaves in a responsible way Russia is intent to participate in the elaboration of common rules in the energy sector and to abide by rules developed on equitable terms Such rules shall be focused on a fair balance of interests of all the stakeholders including production, transit transportation and consumption of energy Caspian hydrocarbons can’t replace the vast volumes of Russian gas and oil on the world market, but they have a genuine complimentary supportive effect much required and welcomed by the markets Russian transit routes are in great demand and Russia will remain a major factor in transportation of Caspian oil and gas to the world market

CONCLUSIONS  (Gas Supply): 

CONCLUSIONS (Gas Supply) Russia is interested to participate in the construction of new pipelines in the South Eastern Europe and/or to supply gas through the existing or new pipeline transportation systems in the region The Russian gas could be an effective solution to complement the weak resource base for the ongoing projects of the Southern transportation corridors and to ensure the long term sustainability of the said projects The eventual capacity enlargement of the “Blue Stream” pipeline system will promote multiple transportation routes and further the flexibility and reliability of gas supply to Europe

Slide21: 

Спасибо! Spasibo! Michael Ivanovitch S a v v a Head of Division Sectoral International Cooperation on Energy and Transport Department of Economic Cooperation Ministry of Foreign Affairs, Russian Federation