Energy Blast – June 8, 2009

Ukraine has apparently paid its May gas bill and expects an apology from Moscow about aspersions casts upon its ability to pay for gas supplies.  Medvedev has counseled Ukraine to not look ‘offended’ when asked about insolvency but instead try ‘to honor their liabilities.’  Vice-Premier Igor Sechin has said that the Saudi Arabian prediction that oil will reach $150 a barrel is realistic.  Alexei Kudrin has apparently called OPEC ‘ineffective’ at preventing volatility in the oil market.  In the future, gas from the Shah Deniz field in Azerbaijan could be exported to Russia rather than to Western Europe.  Germany’s E.ON group has made a deal to acquire 25% of the Siberian Yuzhno Russkoye gas field from Gazprom.  The CEO of Royal Dutch Shell has warned that oil prices may spike if there is not a considerable amount of new investment.  China will lend Turkmenistan $3 billion to help it develop its South Yolotan natural gas field, reducing Russian dominance in the area.  The BBC examines the issues surrounding the Nord Stream and Nabucco pipeline projects.