Arctic Oil On Life Support

Keep in mind that this will mostly be a problem for the West and not Russia, who insisted it will forge ahead with developing Arctic oil and gas despite sinking prices and sanctions.

 

Oil companies have eyed the Arctic for years. With an estimated 90 billion barrels of oil lying north of the Arctic Circle, the circumpolar north is arguably the last corner of the globe that is still almost entirely unexplored.

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U.S. sales to Russia have only risen since sanctions imposed

U.S. Census Bureau foreign trade data show that exports rose 17 percent from March through May _ the most recent months for which the data is available _ compared with the previous three months, before sanctions were imposed. The value of exports has risen in each consecutive month this year, an unusual trend in a trade relationship that historically fluctuates on a monthly basis.

Russian markets account for less than 1 percent of U.S. exports, but what the U.S. sells to Russia is largely high-tech and expensive goods, including technology and equipment for the energy sector, which faces the threat of targeted sanctions.

Robert Kahn, a senior fellow in international economics at the Council on Foreign Relations, said the rise in exports was evidence that Russian companies were stockpiling goods with the expectation that future sanctions would prevent U.S. companies from selling to their country. Continue reading

China took away the Turkmenistan – Afghanistan – Pakistan – India pipeline from USA

“With a subtle motion of the hand” China took away the Turkmenistan – Afghanistan – Pakistan – India (TAPI) pipeline project from USA and became yesterday the chief controller of gas resources in Central and South Asia.

Somebody else’s ideas and plans have been expropriated by means of contract for sale of 25 bn cu m of gas per year concluded between State Concern Turkmengas and Chinese Company CNPC.  The deal will increase the total volume of Turkmen gas supplied to China up to 65 bn cu m. At the same time the agreement is achieved on the planned new direction of Turkmenistan – China pipeline (D direction) for additional supplies. Continue reading