Energy Blast – May 19, 2008

Russia has reportedly sent a fleet of nuclear-powered ice breakers into the Arctic, and many fear that Moscow will attempt to illegally annex some of the potentially gas and oil rich region. Igor Sechin says Rosneft’s stellar growth proves that state control over companies does not necessarily hurt efficiency. Korea Gas Corp and Gazprom have agreed to extend a cooperation agreement until 2013 to secure a stable supply of the fuel. Venezuelan President Hugo Chavez said that crude oil would rise to “$400 or $500” per barrel in the event of a US attack on his country. German engineering giant Siemens has signed a €100 million euro ($155 million) contract to build three power turbines for OGK-1. Anatoly Chubais says Gazprom should concentrate on supplying its domestic market to avoid shortages at home. Opec oil ministers from Iran and Qatar have dismissed calls for an emergency meeting before September, dampening hopes that members of the cartel will increase production.