It seems the shoe is on the other foot for a change, making for some interesting developments here in Moscow.
It's the sixth time in as many years that I've been invited to give a briefing during the annual policy meetings held by the Ministry of Energy. This trip, however, is not like all the rest.
Instead of the usual certainty, there is a noticeable indecision in where Moscow plans to move next.
And while North America has been the focus of this new source of crude, it's the global unconventional reserves that have started to change the dynamics in the cross-border energy balance.
Here's why that has the Kremlin worried...
Believe Me, Shale Gas Is No "Flash in the Pan"
You see, traditionally Russia has been able to obtain a certain amount of leverage from being the largest non-OPEC producer of conventional oil. The authorities simply parlay OPEC supply quotas to improve their export pricing and undercut OPEC members in selected global regions when Russian companies can improve market penetration by providing additional volume.
About the Author
Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.
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