Foundation of the East Central Eurasian Hydrocarbon Energy Complex: The Role of China, Russia, Kazakhstan, and Their National Oil Companies

2018 ◽  
Vol 17 (1-2) ◽  
pp. 40-62
Author(s):  
Robert M. Cutler

Abstract This article analyzes the evolution of the East Central Eurasian energy triangle China-Kazakhstan-Russia. It treats in depth the behavior of Chinese national oil companies (nocs) regarding foreign direct investment (fdi) in Kazakhstan and Russia. The first section sets out the framework of geo-economics in a complexity-science perspective, in particular the key analytical categories of the ‘emergent coherence’ approach, and it defines a ‘hydrocarbon energy complex’ (hec). The second section analyzes the formation of the East Central Eurasian hec by examining Chinese energy investment in Kazakhstan and Russia since 1991, using the ‘emergent coherence’ framework as explained. The third section examines the geo-economics of Sino-Russian competition for energy resources in Central Asia, specifically in Kazakhstan and Turkmenistan, over the same timeframe. The fourth section presents conclusions about changes over time in the behavior of Chinese nocs regarding investment in Kazakhstan and Russia and cooperation with them in the energy sector. The fifth section, the conclusion, summarizes the findings, gives them geopolitical perspective, and concludes on the criteria determining the delimitation of the distinct chronological periods emerging from application of the ‘emergent coherence’ framework.


2013 ◽  
Vol 11 (1) ◽  
pp. 713-722 ◽  
Author(s):  
Saud M. Al-Fattah

This paper provides an assessment and a review of the national oil companies’ (NOCs) business models, challenges and opportunities, their strategies and emerging trends. The role of the national oil company (NOC) continues to evolve as the global energy landscape changes to reflect variations in demand, discovery of new ultra-deep water oil deposits, and national and geopolitical developments. NOCs, traditionally viewed as the custodians of their country’s natural resources, have generally owned and managed the complete national oil and gas supply chain from upstream to downstream activities. In recent years, NOCs have emerged not only as joint venture partners globally with the major oil companies, but increasingly as competitors to the International Oil Companies (IOCs). Many NOCs are now more active in mergers and acquisitions (M&A), thereby increasing the number of NOCs seeking international upstream and downstream acquisition and asset targets


2019 ◽  
Vol 59 (2) ◽  
pp. 582
Author(s):  
Gero Farruggio ◽  
David Dixon

Upstream is enjoying a renewed optimism in pricing and project developments, and the growth outlook is positive. That said, current investment in upstream across Asia is less than half that of renewable projects, which accounted for over US $180 billion in 2018. Got your attention? It certainly has for national oil companies and regional oil and gas players as companies explore the opportunities presented by lowering solar and storage costs. In this paper we analyse capex trends and forecasts across both sectors in Australia and the region. Will this growth continue, who is set to gain and by how much? We explore the growing role of renewables in the oilfield service sector. Australia is not alone in experiencing a renewables boom; the trend continues across Asia, with government initiatives more often than not being the catalyst and the boom then fuelled by a seemingly endless supply of insatiable investors. Australia is experiencing a frenzy of activity; developers are rushing to grab land and be the first past the post on grid connection. What can we expect as the renewable energy target transitions to the national energy guarantee, to whatever comes next? We compare the corporate landscapes across the upstream and new energy sectors, and explore what is driving them closer each year as miners and upstream operators turn to solar, wind and storage to reduce operational expenditure and boost field economics. Adani has one of the largest solar pipelines in Australia; will Woodside follow suit? Finally, we compare returns for recently commissioned renewable and upstream projects.


Author(s):  
Patrick R. P. Heller

Many governments have successfully employed state-owned enterprises to exert state control over their oil and gas sectors and capture a larger share of rewards from the industry. However, relying heavily on a national oil company requires adapting to certain challenges for the management of the oil sector and governance of the broader economy. This chapter argues that governments should base decisions concerning the role of a national oil company on a careful assessment of the size of the potential rewards and the state’s tolerance for associated risks. It then examines the most important risk mitigation techniques that governments have used to increase the likelihood that their national oil companies will deliver strong economic returns and remain accountable to citizens.


2019 ◽  
Vol 26 (12) ◽  
pp. 27-38
Author(s):  
M. R. Еfimova ◽  
N. A. Korolkova

The article proposes an improved system of statistical indicators for assessing the state and development of the fuel and energy complex of Russia, which defines a methodological approach to identifying factors and trends in its development. The introduction highlights the relevance of modernization of information and methodological support for reaching decisions on new tasks, including those related to the digitalization of the economy and implementation of the national projects’ portfolio. The body of the article critically examines the current configuration of official and departmental statistical information, based on which the authors selected 85 key indicators reflecting the state and development level of the fuel and energy complex of Russia. All of them can be delineated by sectors and analysis tasks. This evaluation system includes 7 blocks: general block characterizing the role of the fuel and energy complex in the economic system; key industry performance indicators; indicators of the production structure by industry; technological indicators of industries; prices for fuel and energy resources; production costs by industry; distribution indicators of fuel and energy resources. The paper analyses development trends in the fuel and energy sectors for 2008-2018. In particular, the authors’ research showed that modern oil production is characterized by a change in the territorial structure, as well as the reinstatement of the role of vertically integrated companies in the development of oil production. The article presents findings on the technological upgrading of Russian oil refining. However, the authors’ research proved that oil refining depth has ceased to be a reliable indicator of the level of technological equipment and modernization level of oil refineries. With regard to the development of the gas industry, there has been a steady increase in gas production, which is supported by maintaining a steady increase in demand for Russian gas in the domestic and foreign markets. The all-time high domestic consumer demand for gas fuel, associated with the Russian Regions Gasification Program implemented by the Ministry of Energy of Russia, was recorded. At the same time, the authors identified the main risk factors in the development of the industry related to Gazprom (a backbone of the energy sector) activities. The persistent positive growth dynamics in commodity production of associated petroleum gas was established. It was also noted that the highest percentage of its beneficial use is characteristic of operators of production sharing agreements. As for the results of the analysis of the coal industry, a matter of interest is the growth of domestic prices for coal products and related derivative trends. Particular attention is paid to the development of the possibilities of using over-the-counter coal price indicators. Replacement of coal with natural gas at a thermal power station in most regions of the country is of interest within the identified development trends of the electric power industry in Russia, which is explained by the environmental friendliness of electricity generation.


Sign in / Sign up

Export Citation Format

Share Document