Energy Blast – May 8, 2008

Key US lawmakers have reportedly urged President George Bush to suspend the US civilian nuclear cooperation pact with Russia until concerns about Russia’s nuclear ties to Iran are cleared up. Russia and Kazakhstan will double the capacity of a Caspian region pipeline in a move to help open up Central Asian oil fields to Western markets. Hungary’s new Mako Trough gas field could provide some competition for Gazprom. A Rosneft subsidiary has filed new claims against TGK-11, alleging that the vote to create the utility was invalid. Today’s German FT says that the slowing of average oil production growth in Russia to 2.5% from a high point of 12% in 2003 can be blamed on changes to the Moscow government’s tax regime and its taking over of privately held assets such as Yukos. The European Bank for Reconstruction and Development has acquired an additional 4.1% stake in OGK-5.