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
taxi o'hare Wisconsin Dells ..Long Term Environmental Effect of Plastics, Composites and Other Materials... Read More
Sarbaines Oxley was probably the easiest way to destroy free... Read More
Heavens, what are we up against? It seems these days... Read More
One of Abraham Lincoln's claims to fame is the fact... Read More
Societies have always had a problem of what to do... Read More
We have brain drain issues in Silicon Valley, we have... Read More
Iran has threatened to raise America's fuel prices again. They... Read More
Today we wish to examine a fallacy, or error in... Read More
The idea that the majority shows the will of the... Read More
In what the Americans love to describe as the war... Read More
The Second World War was the continuation of World War... Read More
The more I study the dynamics of WWII the more... Read More
Guides for RetailersThe regulations about marketing pearls are listed in... Read More
Currently the US Army is having trouble recruiting. These problems... Read More
The North American Trade Agreement (NAFTA) was implemented on January... Read More
"When you are right you cannot be too radical; when... Read More
Do you ever wonder how everything gets to the super... Read More
An American soldier is taken behind enemy lines and brainwashed... Read More
We recently saw another ferry accident, this one in NY... Read More
The People's Liberation Army of China invaded Tibet in 1949.... Read More
Fuel costs seem to rank high in surveys of US... Read More
The most exciting event in Slovenia last week was when... Read More
The CBR taxes the Pakistani source income of nonresident individuals... Read More
Britain has a proud tradition of valiant armed forces and... Read More
When North Americans discuss Cuba, they always focus the intense... Read More
bmw rental chicago Ackley ..The No Child Left Behind can work if the Federal... Read More
The news media will regularly present views from Democratic (liberal),... Read More
We are told by out leadership that we risk loss... Read More
Let's put the religious part of the debate for a... Read More
One question not addressed in GM Crops and Monsanto Terminator... Read More
Quit paying the DEA to chase marijuana. We could save... Read More
Death may not be dignified in any light but the... Read More
Businesses advertising alcohol either in TV or non-broadcast format need... Read More
De-classification of official documents have been a routine practice in... Read More
As I read the papers and watch the news day... Read More
Recently scientists have been watching the exponential growth of marine... Read More
Utah introduced a bill designed to limit the use of... Read More
We have heard a lot about the coming bird flu... Read More
"Like humans void of soul or mind, they jeered and... Read More
We are destroying our freedoms and slowing innovation, due to... Read More
Why are we over regulating the franchising industry? What are... Read More
The steel tariff taxes a few years ago hurt industry... Read More
The debate to raise minimum wage in California is totally... Read More
The recent Jakarta summit of Asia and Africa brought remembrance... Read More
Legislation is getting legs to further curtail your use of... Read More
Water Conservation in larger cities is less of an issue... Read More
Hitler received a legacy from his Rothschild relations in Vienna... Read More
Perhaps a silent revolution is taking place, this time more... Read More
Question: Dr. Vaknin ? is it true that you are... Read More
Revitalization Downtown projects are all the rage in fact the... Read More
Political |