Investors Should Proceed With Caution
Quick, which country produces more oil than any other? If you know that, can you name its canada goose uk largest uk canada goose outlet oil and gas companies?
Odds are https://www.canadagoose-coats.ca (unless you’re an oil and gas enthusiast) you don’t know.
Russia is the world’s largest oil producer pumping 10.12 million buy canada goose jacket barrels/day (mb/d) out of the ground. comes Canada Goose sale in third with 9.06 mb/d, and Iran a distant 4th with 4.1 mb/d (See complete list here).
The Russian company, producing 2.18 mb/d of Canada Goose Jackets Russia’s 10.1 mb/d, is Russia’s top producer while Lukoy (OTCPK:LUKOY) holds the largest reserves. Russian oil flows to booming domestic markets, former Soviet Republics, Europe, and canada goose uk shop elsewhere. Now, Canada Goose Coats On Sale with the opening of the Eastern Siberia Pacific Ocean pipeline, Russian oil is also headed toward rapidly growing China and South Asia.
A Russian Flag at the North Pole?
It is an open question if Russian production can be maintained or increased in coming years. The lion’s share of Russian oil and gas comes from Soviet era fields in Western Siberia. canada goose Currently, enhanced recovery methods keep the oil flowing. In the future, Russia is looking for oil and gas Canada Goose Outlet in Eastern uk canada goose Siberia, the Far East, the Siberian Arctic and abroad.
Three years ago Russian divers placed a rust cheap canada goose uk proof flag into the seabed below the North Pole. Russian claims under the North Pole are debatable. What is not debatable is canada goose factory sale that Russia badly needs western expertise to exploit new fields.
Here are Russia’s largest energy companies:West and East Siberia, the Volga, the Far East, the Black, Caspian, and Azoz Seas, the Arctic: Rosneft is in all the above canada goose clearance sale and more. canada goose store In addition to its world leading production, this company claims more proven reserves than any other publicly traded firm. It owns refining and retail operations throughout Russia. Rosneft isn’t afraid to let the world know its strengths (see here).
The Russian state owns 75% of Rosneft. Approximately 15% of the shares float.
Many of Rosneft’s assets originated from the controversial “re nationalization” of Yukos seven years ago. Yukos, until 2003, was one of Russia’s largest oil companies. This is a story canada goose coats of intrigue, wealth, questionable tax assessments, and shady court rulings. The end result? Most of Yukos’s assets now belong to Rosneft and its former oligarch Mikhail Khodorkovsky once the wealthiest man in Russia sits Canada Goose online in a Moscow prison. Lukoy also claims that at current production cheap Canada Goose rates its oil will last 19 years and gas for 37 years. Like Rosneft, Lukoil is also involved in refining and petrochemicals.
Most of Lukoil’s reserves also lie Canada Goose Online in older Western Siberian fields in, fields made newly productive with water canada goose uk black friday flooding and other enhanced recovery methods. Looking to increase reserves, Lukoy is in Colombia, Kazakhstan, Saudi Arabia, Uzbekistan, Cote d’Ivoire and Ghana.
Until recently ConocoPhillips (NYSE:COP) owned 20% of Lukoil but has now sold the stake. Conoco was in, now they are out. Most of its gas reserves are (again) in Canada Goose Parka declining fields in Western Siberia. In 2008 Gazprom had 17% of worldwide and 83% of Russian gas production. The company is targeting the Yamal peninsula region, looking for new gas.
Like other Russian energy companies, Gazprom went through a period of oligarch control. Vladimer Putin became president of Russia in 2000, putting a stop to rampant tax evasion and asset stripping by oligarch controlled companies. Now privatized, the Russian government holds canada goose uk outlet a controlling stake in Gazprom. In the past Gazprom has had an exclusive right to export Russian natural gas.
Gazprom delivers gas to 25 European countries, some of which are entirely dependent on it. Russia has used this near monopoly to pressure Ukraine and Belarus to accept large price increases. LNG, which canadian goose jacket is becoming more available, is now reducing Gazprom’s pricing power.
Gazprom is not just canada goose clearance gas, its oil production subsidiary Gazprom Neft (OTCQX:GZPFY) hopes to more canada goose coats on sale than double oil output by 2020, an ambitious goal which may make it Russia’s largest buy canada goose jacket cheap oil producer.
Controversy canada goose black friday sale arose over TNK BP’s right to export gas outside of Russia. This was settled by the sale (some say at a fire sale price) of its large Siberian Kovykta gas field to Gazprom in 2007. The field is being eyed for Chinese exports. More controversy arose in 2008 when a dispute arose between shareholders and AAR over company structure and strategy BP executives suddenly started experiencing visa problems. BP executive Robert Dudley was accused by AAR of violating Russian law. The government has ultimate control, the oligarchs get things done efficiently (something governments are never good at), and Western oil companies provide badly needed expertise.
The result is a constant maneuvering for position and power. BP has had frustrations with its TNK BP partnership and its January announced stock swap with Rosneft to explore the Siberian Arctic is now threatened. Conoco (COP) also exited Russia, divesting its position in Lukoil with little explanation.