Energy Blast – Jan 19, 2011

Rosneft would like a favorable ‘new tax regime for its Kara Sea oil and gas project in the Arctic, ‘based on profit‘ and ensuring that the project is ‘economically sound‘.  Reuters explains the high cost of drilling in the region.  TNK-BP are continuing to protest about BP’s Arctic exploration agreement with Rosneft, saying that they were not adequately consulted; the latter’s CEO says he is sure that all issues will be resolved.  Leaked US embassy cables reveal 2009 speculation about the inefficiency of Russia’s energy sector and the government policies hindering modernization.  Further documents indicate BP’s plans to remain a strong presence in Russia ‘for the next 50 years‘.  Transneft is accusing foreign states of having tried to hinder the construction of Russia’s East Siberian Pacific Ocean pipeline, which supplies crude to Asia: ‘Russia now has a powerful corridor to Asia-Pacific markets and, naturally, many states don’t like Russia having this capacity.‘  OPEC is blaming a weak US dollar and a leak in Alaska for the $99/barrel price of oil, and criticized the International Energy Agency for its comments that the price posed ‘a real economic risk‘.  A Vodokanal waterworks on the outskirts of St Petersburg is using ‘giant African snails‘ fitted with heart monitors to monitor air pollution from its sewage incinerator.