From The Telegraph:
Plan for 'gas Opec' could tighten Prime Minister Vladimir Putin's grip on Europe's gas supplies.
The Russian national anthem blared over the loudspeakers as dozens of oilmen and officials braved the freezing cold to watch the tanker come in, celebrating the launch of year-round oil production from Sakhalin-2, the largest oil and gas project in the world.
They congratulated themselves and stared out to the sea with pride.
Yet this month's event will be dwarfed by one to come early next year, when the sprawling plant on the tip of Russia's Far Eastern island of Sakhalin begins producing liquefied natural gas, or LNG, a relatively new form of energy.
The advent of LNG may one day allow gas exporting countries, who gathered in Moscow last week to create a new organisation, to act as a cartel along the lines of Opec, holding sway over prices and supply, and thus consumers around the world.
Read more ....
My Comment: Such a plan will never work in the long term. As OPEC's failure becomes obvious to all to see, once prices increase .... alternative or additional energy sources will be quickly found. For old line communists like Putin, free market economics is a concept that is hard to understand or define, but its impact is felt on a daily basis.
No comments:
Post a Comment