Energy Blast – Nov 11, 2009

Gazprom insists that ‘everything is in place‘ to ensure that there will be no conflicts over gas supplies to Europe this winter. Prime Minister Vladimir Putin will meet with the Austrian Chancellor Werner today to discuss the situation. In a bid to control the environmentally damaging practice of gas firing, Putin has announced heavy fines for oil companies that miss reduced targets. Any slight temptation to diversify the Russian economy will surely be dampened by the new IEA World Energy Outlook report, forecasting a steady increase in global energy demand for the next ten years…although the IEA report also suggested that an impending glut in natural gas supplies would weaken Russia’s grip over Europe’s energy supplies and cause prices to fall. Members of the Asia Pacific Economic Cooperation forum will pledge to phase out ‘inefficient fossil fuel subsidies that encourage wasteful consumption‘ over the medium term. Shell’s move into Tullow Oil’s territory in French Guiana has sparked hopes that the area could contain large oil reserves.