In the early 2000s, presidents Putin and Bush convened two U.S. – Russia Commercial Energy Summits. Igor Yusufov, Russia’s energy minister from 2001 to 2004 now emphasizes how the two countries could cooperate to stabilize a volatile oil market and hopes that President Donald Trump will restart the high-level meetings…
Russian President Vladimir Putin, Eastern Economic Forum, 2018 elections, US General Election, Syria, OPEC, Rosneft sale, Japan, oil, Russian oil and gas companies, investment in energy, natural gas exports, 50 percent ownership, oil and gas revenue, structural changes, industrial production growth
OEF REVIEW:Saudi Arabia and Russia have taken the first step to stem the slide in oil prices. There’s just one problem: If they are successful — and that’s a big if — the wildcatters of Texas, Oklahoma and North Dakota are waiting to pounce. With 4,000 wells drilled and just waiting for better prices to be brought on stream, the so-called fracklog could act as a cap to any oil rally, industry executives, traders and OPEC officials said. Worse, a price recovery could effectively bail out dozens of shale companies now struggling with $30-a-barrel oil, allowing them to return to the capital market.
OEF REVIEW:Ministers from Saudi Arabia and Russia met in Doha along with their counterparts from Venezuela and Qatar. Saudi Arabian oil minister Ali al-Naimi said: “Freezing now at the January level is adequate for the market. We don’t want significant gyrations in prices, we want to meet demand. We want a stable oil price.”
OEF REVIEW:The head of Russian state-run oil company Rosneft on Wednesday floated the idea of a coordinated output cut by major oil-producing countries to prop up sagging prices but fell short of saying whether Moscow would contribute to such a plan. Rosneft Chief Executive Igor Sechin, in a speech at the International Petroleum Week conference in London, attributed oversupply in the market to overproduction by members of the Organization of the Petroleum Exporting Countries. He suggested major oil producers each cut production by 1 million barrels per day.
OEF REVIEW:Russian president Vladimir Putin met with Saudi Defense Minister in Sochi on October 11th, while Russian Foreign Minister Sergei Lavrov was holding a meeting with his Saudi counterpart. The parties discussed Syria and agreed upon the necessity to prevent the creation of a terrorist caliphate. The levers of a hypothetical Russian-Saudi deal would be: a rise in oil prices, possibly accompanied by Saudi arms purchases, and on the Russian side, the guarantee that Assad will leave after a transition period, along with some kind of a Saudi “right of scrutiny” on Russian arms sales to Iran.
OEF REVIEW:Prime facilities for the “Power of Siberia” gas pipeline, the world’s most expensive contract, are to be completed on schedule in 2018 and will make it possible for Russia to supply natural gas from the Irkutsk and Yakutia gas production centres to the Russian Far East and China. It will also develop gas infrastructure and boost economic growth in the eastern part of Russia.
U.S. journalist Charlie Rose interviews Russian president Putin just before UN 70th Session
OEF REVIEW: President Putin talks with Charlie Rose about: the Islamic State and Syria; his relations with President Obama; how Russia and the U.S. cooperate for a better world; about his popularity in Russia; his views on the U.S.; Ukraine and the Minsk agreements; the disintegration of the USSR; the Baltic States; and what he sees as his legacy.
Russia’s Energy Minister, Alexander Novak, expects that cuts in global shale oil production will help stabilize the oil market. He adds that Russia would not cut its own production which is currently standing around 10.7 million barrels per day.