Energy Blast – Dec 4th, 2008

Russia apparently isn’t intending to sell its $58 billion stockpile of Kyoto Treaty credits to other nations, but will use them instead as collateral in a successor treaty.  The European Union wants to strengthen efforts on the construction of the Nabucco pipeline, which will carry natural gas from the Caspian Sea region to Europe, bypassing Russia.  OPEC president Chakib Khelil wants Russia, Norway and Mexico to join OPEC, but wants to see solidarity on production cuts until they do.  In spite of cuts, analysts fear the price of oil could drop below $40.  During today’s question and answer session, Prime Minister Vladimir Putin suggested that gas supplies to Europe could be cut: ‘If Ukraine fails to comply with transit terms, or taps gas bound for Europe, we will have to cut back on our supplies to Europe.‘