With the world's largest oil and natural gas reserves, second in coal production and eighth largest oil assembly, President Vladimir Putin draws grandiose plan for the country's hydrocarbon reserve encouraging drilling and investment plans aimed at further development. Private investments, domestic or foreign is however, a big no-no, rather state government plays the steward to Russia's energy patrimony or to say 'serve the national interest'.
"Hydrocarbons are an extremely important sphere of our potential cooperation" Putin says in an interview "but I would like to stress: we are already cooperating in the electric power, primarily engineering for the electric power sector".
Given today's high oil prices, state government sounds positive to funding new projects. Additionally, Indian and Chinese government shows willingness to do business with Russian companies with their investment criteria more in line with the approach favored by their Russian hosts. Putin further stressed state government to have larger share while a meager chunk gifted to private investors mainly in electricity sector.
The post Cold-War relics witnessed Russian industries as highly inefficient, combined with under-nourished investment opportunities and mismanagement dominating the sector; of which petroleum poised to have a serious impact overall. Further huge infusion of capital, technology and negligent exploration management hit the production to a record-low and decline. This is return could have foiled Putin's plan and country's national honor.
Putin must recognize that to put back the country's faltering image, he needs a petroleum sector with well-managed and well-capitalized oil, gas and pipelines. Russia's oil and gas industry being the backbone to the country's economy generate fifty percent of the total revenues and taxes and most of foreign exchange, need balanced combination of public and private governance.
A faltering Russian oil sector would be a disaster for the world economy as well as for Russia itself.
Rahul Ghosh, working as freelance industry analyst working is a regular contributor and has written many articles and commentaries on diversified industry sectors. For further discussion with the writer, email at rahulghosh@rediffmail.com
home cleaning services Deerfield ..Britain has a proud tradition of valiant armed forces and... Read More
Utah introduced a bill designed to limit the use of... Read More
"The only time I open my mouth is when I... Read More
News is spreading of the retirement of Supreme Court Justice... Read More
The UnbornWith all this cloning in the news one can't... Read More
After arranging the Armistice that ended or settled outstanding issues... Read More
I would like to discuss the blocked persons list of... Read More
THE ECCLESIASTICAL GRANT:There are good things done by the hegemony.... Read More
In a move that rocked the online world and left... Read More
Year Item Price Rate of Inflation 03/80 Gasoline (per gallon)... Read More
The gun control debate in America is a battle between... Read More
The organic farmers are angry that Monsantos terminator GM seeds... Read More
The Palestinian Fatah Movement is doing whatever it can to... Read More
The US Dollar has been falling continuously in last year.... Read More
You are not going to believe what is going on... Read More
Yes, Bush is two-faced. The two sides of the faces... Read More
Which companies are most affected by fuel? Who really bears... Read More
A quick look back at NAFTA; how did we do?Stabilizing... Read More
The Republican Party became popular due to its view on... Read More
I'm starting to feel squeezed by all the political correctness... Read More
I read an interesting article in foreign Affairs magazine last... Read More
We know we can cloak a giant airship from those... Read More
US Steel prices have cost franchisees in my company and... Read More
1) IS HAVING A DEMOCRACY MORE EFFECTIVE IN ADDRESSING POLITICAL... Read More
Close to 500,000 people - one in four - live... Read More
recurring housekeeping Highland Park ..For the business community 9-11 changed everything. In our company,... Read More
Fifteen hours is a tremendous barrier. It is the obstacle... Read More
In the last Gulf War we saw thousands of enemy... Read More
Despite their signature on the Biological Weapons Convention of 1975,... Read More
Due to the bizarre weather patterns this winter California got... Read More
Is it just me or are you concerned that illegal... Read More
The other day I was sucker punched, hoodwinked, bamboozled, had... Read More
Conor MacDari was a Mason but his Masonry deplored the... Read More
Pierre Dupont de Nemours:After arranging the Armistice that ended or... Read More
There are many types of fuels besides that gasoline we... Read More
We learned some lessons in these last few wars. For... Read More
The process of researching this topic has been an interesting... Read More
Tulipmania - this is the name coined for the first... Read More
The new law "Special Protective, Antidumping and Import Compensatory Measures"... Read More
We know that the International Terrorists like the idea of... Read More
The head of the Club of Rome has said that... Read More
Ohio's transportation sector seems to be strong, even with Ohio's... Read More
One question not addressed in GM Crops and Monsanto Terminator... Read More
Judgment and detective work requires thinking about possibilities. One of... Read More
On June 16, 1972, a security guard at the Watergate... Read More
The Federal trade Commission has a rule, which says that... Read More
It is time for a change. A change in philosophy,... Read More
As we reel from the news of the recent bombings... Read More
Many parents might think it a bit farfetched to compare... Read More
Journalism, as it is often said, is the 'fourth branch... Read More
Political |