Energy Blast, March 24, 2008

OMV, Austria’s leading oil and gas company, is “battling” Gazprom for control of Europe’s energy supply. “You have to deal with Gazprom and it is not a small company. What we can do is grow, expand and add value. What is the alternative? Being taken out step by step, piece by piece.” New problems have emerged in gas relations between Russia and Belarus. Gazprom is demanding that Belarus cancel nontax deductions to its Energy Ministry, while Belarus opposes the new 7% rise in prices. Power producer TGK-13 reported a 2007 net loss of $45.4 million as rising costs wiped out a 24% year-on-year increase in revenue.

WORLD ENERGYA €10-20 billion deal between the Zurich utility Elektrizitäts-Gesellschaft Laufenburg (EGL) and National Iranian Gas Export Company (NIGEC) that would bring gas from Iran to Europe as early as next year has provoked “threats from Washington, protests from Jewish groups and fuelled mounting concern about Europe’s energy security.”“US political leaders should work with the oil companies to become better caretakers of those most harmed by rising energy prices,” says one Russian newspaper.