Russian energy sector : prospects and implications for Russian growth, economic policy and energy supply

Abstract

Russia is a globally important oil and gas producer.Russian hydrocarbons are not only crucial to the domestic economy but also to European countries depending on energy imports.This paper reviews the current stand and future prospects of Russian oil and gas production and exports.Russia has clearly stated that it wants to diversify its oil trade by increasing its exports to other areas than Europe.At the same time, many countries have seen their gas import prices rising significantly.As energy prices and exports have also been the main driver behind the current economic boom in Russia, there is no doubt that Russian energy will stay high on both the economic and political agenda of the EU and its member countries at least in any foreseeable future.The question remains whether there is enough Russian oil and gas for all new pipelines planned, as well as whether the huge investment needs of the energy sector can possibly be fulfilled, given the current investment climate and increasing government influence in the major energy firms. Keywords: energy, oil, natural gas, Russia, EU