StasisLAX From United States of America, joined Jul 2007, 3302 posts, RR: 7 Posted (6 years 7 months 1 week 3 days 2 hours ago) and read 1862 times:
Here we go again with Comrade Putin trying to control natural gas production and artifically increasing gas prices, while once more threatening Ukraine with cutting off critical gas supplies in the dead of winter.
"Vladimir Putin has set Russia on a collision course with western Europe after he warned that the era of cheap gas is over even as oil prices continue to slump. Russia's prime minister was speaking as he hosted a meeting of a dozen gas-producing countries today in Moscow to set up an Opec-like production cartel.
"Costs of exploration, gas production and transportation are going up," he said. "It means the industry's development costs will skyrocket. The time of cheap energy resources, cheap gas is surely coming to an end."
Analysts said that in the short term energy markets do not reflect his comments. Gas prices are index-linked to the price of oil, typically with a time lag of about six months. Oil has slumped from an all-time high of $147 a barrel this summer to barely above $40 (£27) this week. Adam Sieminski, chief energy economist at Deutsche Bank, said that as a result natural gas prices should fall sharply in the next six months.
If Russia tried to keep the price it charges European consumers for gas artificially high next year, he said, it would encourage countries to seek other sources of energy, such as nuclear power, over the longer term.
Russia supplies a quarter of Europe's gas. Other countries in the Gas Exporting Countries Forum include Algeria, Iran and Venezuela. Russia has already flexed its muscles on energy this week. The state-owned gas monopoly Gazprom warned that supplies to Europe could be disrupted this winter because of a long-running row with Ukraine – through which most of the gas exported to Europe passes – over gas prices."
Zone1 From United States of America, joined Jan 2005, 1036 posts, RR: 7
Reply 1, posted (6 years 7 months 1 week 2 days 21 hours ago) and read 1798 times:
I don't see how a nat gas cartel will really work. The worldwide shipping of nat gas is relatively small because no one wants an LNG facility in their backyard. Further more, if all the oil drilling operations in the world wouldn't just flare nat gas, we would have more than enough. Just a bunch of hot air in my opinion. I wouldn't expect anything less from Putin, Venezuela, and Iran.
Kevin From Canada, joined Dec 2000, 1171 posts, RR: 0
Reply 2, posted (6 years 7 months 1 week 1 day 18 hours ago) and read 1731 times:
Quoting StasisLAX (Thread starter): while once more threatening Ukraine with cutting off critical gas supplies in the dead of winter
If you have a look at the recent news you might notice some articles about Ukraine's debt to Russia. They do not pay for gas delivered. They owe more than $3 billion. Russia issued many warnings to Ukraine "PAY YOUR BILL". They just do not bother. So now tell me what would you do in this case?
Aeroflot777 From Russia, joined Mar 2004, 3071 posts, RR: 24
Reply 4, posted (6 years 7 months 1 week 1 day 12 hours ago) and read 1708 times:
Quoting Kevin (Reply 3): Look at all this from a business point of view. Suppplying gas is business. If you do not get paid for the goods you deliver, you stop deliveries pure and simple. Business 101.
Kevin, unfortunately some people on these forums don't see that. Anything written about Putin ends up being horrific and unfair in their eyes.
L410Turbolet From Czech Republic, joined May 2004, 5820 posts, RR: 18
Reply 6, posted (6 years 7 months 1 week 5 hours ago) and read 1529 times:
Quoting Kevin (Reply 3): Suppplying gas is business. If you do not get paid for the goods you deliver, you stop deliveries pure and simple. Business 101.
Then what excuse do you have for Russia repeatedly failing to honor it's contracts with the unfortunate half of Europe connected to the same pipeline as Ukraine? Looking at all this from a business point of view there certainly are less draconian measures available how to deal with those who owe money while not screwing the rest of those business partners who do pay (and do pay market rates).
Quoting Kevin (Reply 6): Of course you only hear that Russia is using gas supply as a power tool.
Is it not?
Quoting Kevin (Reply 2): So now tell me what would you do in this case?
If I were Mr. Puting I'd matry to be a bit humble since not so long ago his predecessors were in considerably worse position than Ukraine is now - owing billions upon billions of USD everywhere they looked and reliant on food aid from abroad.
AverageUser From , joined Dec 1969, posts, RR:
Reply 7, posted (6 years 7 months 6 days 12 hours ago) and read 1470 times:
Quoting StasisLAX (Thread starter): Vladimir Putin has set Russia on a collision course with western Europe after he warned that the era of cheap gas is over even as oil prices continue to slump.
Take it easy, someone has been putting words into Mr Putin's mouth. Even the Guardian article, in its all distortion, does not convey that idea, rather, if you check another source you'll get quite the opposite idea:
Forum officials were at pains to emphasise that the purpose of the annual meeting was to finalise and approve a charter for the body rather than create an OPEC-style cartel to fix prices.
"This is a gas 'Non-OPEC'," said the deputy chairman of Gazprom, Alexander Medvedev.
"There are no mechanisms which the oil OPEC uses which could be applied to the gas market. Quota arrangement is impossible in the gas market in principle," he said.