Russia initiates SCO energy club

Russian President Vladimir Putin's proposal to set up an energy club within the Shanghai Cooperation Organization, voiced at the SCO summit in Shanghai, has been met with alarm in the West. Concerns have been expressed that a gas analogue of OPEC may appear in the East. The SCO's oil resources are not overly significant: even with Iran, they do not exceed 20% of the world's total. The situation with gas is different: the gas reserves of Russia, the Central Asian states, and Iran make up more than 50% of the world's proved reserves.

Is Russia really trying to set up an OPEC analogue within the SCO? Hardly. First of all, it is now too busy supplying energy westwards. It has quite a few long-term contracts, and their number will grow. Secondly, setting up an OPEC analogue is difficult from political, economic and organizational points of view. Russia is hardly willing to assume such a burden, even despite its leading role in global gas supplies.

Oil and gas exporters within the SCO are competing for promising markets, such as China and other dynamically developing East and South Asian nations. To coordinate moves, the organization needs the energy club proposed by President Putin. Its principal difference from OPEC will be that it will unite both energy producers and key consumers, i.e. China, India and Pakistan.

(2006-06-27 12:42:58 SGT) [Energy] Permalink

Comments:

Post a Comment:

Comments are closed for this entry.

« Roads that generate... | Main | Hitachi, GE plan to... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
2. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
3. Live spot gold price quotes chart on COMEX
4. Fuel prices seen stoking Malaysia inflation in 2008
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Singapore SIBOR rate fell to 1.25% in Apr 2008, lowest since Aug 2004
7. Malaysia inflation rate jumps to 7.7% in Jun 2008, a 26-year record high
8. Singapore : electricity tariffs to increase April 2008 on rising oil prices

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Singapore : Bread price inflation continues
4. 2010 Honda Civic Hybrid preliminary specifications released
5. Peakoiler buys 2008 Honda Civic Hybrid FD3
6. How to insert currency exchange rates into Google Spreadsheets
7. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
8. Singapore : Inflation erodes away bank savings