Connect with us

Energy

Relevance of Hydrocarbon sector in changing energy scenario

Published

on

[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] T [/yt_dropcap] he British Royal Navy was the largest and the most technically advanced naval force in the early half of the 20th century. It was the era of coal and oil has just started flowing in the markets. As coal was more readily available in the British Isles in Cardiff and Wales, most of the Royal Navy was coal fired. However, the advantages of a Navy fuelled by oil were beginning to be seen.

Oil-Powered Ships could carry more fuel, were faster and could cover a larger patrol area. More so, the German Navy was fast catching up, both in quantity and quality. Among the debaters of the coal and oil camp was Winston Churchill, the First Sea Lord of Admiralty and a supporter of Oil. He argued strongly for the Introduction of Oil-powered engines and a move towards an Oil Navy. His detractors argued that there was little to no oil to be found with the British Isles. Among his supporters for the transition, a major concern was that the only source of oil for the Royal Navy was in Persia, separated from the British Fleet Home Bases by a thousand miles. In event of a looming war, it would become a logistical nightmare to supply the ships with oil, safely and securely. Churchill, however, dismissed all these concerns. Ships powered by Coal were being grossly outperformed in Fleet Readiness Exercises. An American Training Fleet powered by oil has just come out on top of a powerful Coal-Fired British Fleet in a training exercise, embarrassing the British Admiralty. The writing on the wall was clear. The future belonged to faster, more nimble ships which could only be possible with oil engines. But how could the mighty British Fleet rely on a single source of oil, that too thousands of miles away. Could the safety and certainty of oil be guaranteed? To this he said, “Safety and certainty in oil lie in variety and variety alone.” Diversification of Energy sources was the only way out of the dilemma. And those words hold true, even to this date.

Today, is Energy a luxury or a necessity?

India, a home to over 1.2 Billion People and counting, is one of the world’s largest economies and arguably the world’s fastest growing economy. Every year, a sizable chunk of the Indian Population is pulled up from the Below Poverty Line and becomes part of the world’s largest Middle Class Population. Incomes are rising, the economy is growing, workers migrate to the cities in search of work, shops open to cater to increasing number of customers, suburbs become the part of the cities and the Indian Juggernaut lumbers along. The Economists and the Financial Markets look towards India as one the drivers of the Global Economies and the undisputed hub of the Global Services Industry. But in the all the light, lays a gaping hole of darkness, something which has the potential to snuff out all the light and put an end to the Indian/global Growth. And that darkness is akin to dilemma that the Royal Navy faced over a century ago. To fuel the temples of Economic Growth, we need Energy and lots and lots of it. To build roads, provide electricity to the ever growing population, to pump clean water for drinking, to move commerce and food stuff, heck we even need energy to create fertilizers and irrigate fields to grow food. Energy has occupied the most important place in our lives. Energy is no longer a luxury but a necessity of Human Life now. A life with energy is impossible to imagine now.

The Dilemma of Energy Supply

While the demand for Energy continues to grow, Governments and Public Utilities struggle to find ways to cope with the supply-demand equation. Also, with the coming of the 21st century and the horrors it is foretold to bring if we do not become caring for the environment, there is a need to come up with cleaner and greener sources of Energy. India, like most other counties in the world, faces the same issues. How to supply a growing Population with the means for a bountiful living balancing it with supplying the adequate means for the economy to grow while having a next to no impact on the environment? The dilemma of the policy makers is palpable. James Schlesinger, who served as the first US energy secretary, once quipped that Americans have only two ways of thinking about energy: “complacency and panic.” We’ll agree with the sentiment and substitute the word “Americans” for “people” because very few people anywhere in the world think much about where their energy comes from? And the gargantuan swings in energy markets over the past couple of years illustrate Dr. Schlesinger’s basic point. Our foremost challenge today is the need to balance energy security, employment and economic growth with the issue of climate change. While it can be possible, but not without first acknowledging that the real problem lies above ground rather than beneath it. Getting the Policy mix right is the surest way to avoid the traps of complacency and panic. So what underpins energy security? What to do to ensure that the Energy always flows? Is there the need for an out of the box thinking? Maybe. But the solution remains the same as were the words of Churchill; only this time it would be “Safety and certainty of Energy Supply lie in variety and variety alone.”

Safety and certainty of Energy Supply lie in variety and variety alone

Reliable and affordable supplies of energy have laid the foundation for the world’s extraordinary economic progress to date. Coal fuelled power plants provide electricity for factories and mills. The patriotic fervor among the coal miners in the United States was very strong as they were right to believe that the coal mined by them made Steel and that if the Steel failed, the entire country would fail. Oil made faster travel and commerce possible. Famines and food panics have been gradually reduced as markets became interconnected and it become possible to buy and sell and move goods fast. Natural Gas has made cooking a delightful experience compared to the soot filed kitchens of the past. However, these bountiful sources were very taken for granted throughout much of the 20th century. But with the coming of the 21st century is that energy security and climate change have become the defining issues. They are most important components in a complex matrix with strategic, economic and environmental dimensions.

We need to look towards the future to find out what that lays ahead. BP’s projections suggest we’ll need around 45% more energy in 2030 than we what we can consume today – and double that by 2050. That’s the rough equivalent of adding today’s biggest energy user, United States nearly twice over to world energy demand, and meeting it will require an annual investment of more than $1 trillion a year, every year till 2050. The question is so how can we deliver on that demand sustainably? Let’s be clear – there are no silver bullets here to take this big bad wolf.

Towards Energy Security

To address it, we must have clarity of thought about where we are, where we want to go and which way to go? There is a need to set out practical pathways which can lead us towards the dreamed destination. And most of all, we need a clear regulatory framework to enable businesses to invest with the confidence in building a lower carbon/ carbon free future. Hydrocarbons have, are and will continue to play the most important role in energy security. Say what the environmentalists and the climate scientists; a future full of energy without hydrocarbon is unimaginable, at least with current available technology and investment base. Despite the entire hullabaloo about renewable, they are unlikely to account for much of the energy basket. Unlike what the proponents of the renewable energy who believe the energy base transition would be as under:

energysector21

with renewable contributing a significant higher share year on year. As stated, the share of renewable energy will certainly increase, but we have to be realistic about how much it can actually contribute. All of the world’s wind, solar, wave, tide and geothermal power only accounts for around 1% of total consumption. Add up hydropower and the share goes up another 12%. While hydroelectricity can contribute a bigger share of the energy pie, the application is limited   by massive   population  displacements   and   the   ecological   impact   on   the   local communities. Projects like the Itaipu Dam (Paraguay) and the Three Gorges Dam (PR China) are becoming fewer to plan and execute and several other projects all across the world are struck in various different stages of construction and the Litigation. Governments are funding newer projects in renewable development and research, although taking at a break neck speed, has yet to come up with a game changer solution, forcing corporate to rely on current generation technology for testing and small scale projects. Given the practical challenges of scaling up such technologies, the International Energy Agency doesn’t see them accounting for much more than 5% of consumption in 2030(excluding Hydropower), even with all the aggressive policy support and governmental funding. Nuclear energy and biofuels will also play a part, and by 2030 carbon capture technology could be deployed at scale in Coal Fired power plants. But there will still be a major role for hydrocarbons, primarily Natural Gas. Indeed, the IEA analysis indicates that even in a low carbon scenario predicated on keeping the atmospheric concentration of CO2 to less than 450ppm, hydrocarbons will remain dominant. Hence, Hydrocarbons, more so, Natural Gas are the most reliable fuel for the future.

Relevance of the Hydrocarbon Sector

So we need hydrocarbons and lots and lots of it, that’s clear. The good news is that we have enough reserves of crude oil – and even more of natural gas – and these reserve estimates are rising as we continuously developing newer ways of unlocking both conventional and unconventional resources. Thereby the cornerstone of ensuring the future’s energy security is the creation of a diverse supply – diverse in the forms it can take and diverse in the places it can come from. The hydrocarbon sector must make investments in both low carbon energy business (the projects for Carbon Capture and Sequestration) and the carbon intensive programs (the production from Heavy Oils and Tar Sands) and mate them together. It’s not so much about not emitting the carbon into the system, its more about minimizing the carbon footprint of the energy. Both programs can be a part of a broad and sustainable energy basket mix that embraces oil, gas, coal and renewable, producing and using them all with innovation and efficiency.

However, the building of such a future demands action both from hydrocarbon sector and from Government. The Hydrocarbon Sector can provide the building blocks and tools – but there is a need for them to work within the architecture provided by governments. This appears to be the most logical way in which the current energy security architecture can – and it should – be strengthened.

Challenges Ahead

There is however a set of unique challenges ahead. First, with continuously increasing pressure on the supply side, it’s important to develop energy resources as efficiently as possible. For the Government, this means opening up areas that had previously been closed for exploration and allowing competitive bidding for operations. Offering access permits to a group of potential operators encourages them to come up with the most efficient solutions and often involves partnerships that develop new and innovative combinations of skills, lest they try it going in alone and losing it all. The key to producing unconventional and stranded conventional resources efficiently lies in application of advanced technology. The prime example of this thought school is the US revolution in shale gas over the past decade that has been made possible thanks to new drilling and fracturing technology. This is a real game-changer when it comes to energy security.

The second area in which policy is critical is in addressing climate change. The hydrocarbon sector along with the government can play a major role, arguably via creating a price for carbon trading through conventional market mechanisms. Needless to stress upon but only an open competition will encourage the most efficient ways of cutting emissions. The Hydrocarbon sector must factor a carbon cost into both, their investment choices and their engineering design of new projects. This is only way of ensuring that their investments are competitive not only in today’s world, but also in a future where carbon has a more robust price.

The question of Climate Change?

There are a lot of detractors and proponents of the role of hydrocarbons in the climate change but the fact remains that the world is going to use a lot more energy in the coming decades and there is a need to take urgent action to mitigate the effects of such an increase. All across the globe, millions of people are leaving poverty behind and enjoying a much better standard of living. While there are some clear signs that governments around the world are sensitive to this and are beginning to do something about it, the process remains disjointed and sometimes even frustrating for the Hydrocarbon Sector to do something positive in this regard. The key to real progress being made is alignment, rather than simple agreements – moving in the same direction, may or may not necessarily in lock-step. If the government provides a clear, stable and sustainable framework for investment, it will start to flow. But if they don’t, they run the risk that spare capacity will dwindle – and ‘complacency’ will give way to ‘panic.’

The quickest way to ensure a low carbon fuel for the future while ensuring minimum investment and with the existing infrastructure and technology is Natural Gas. Gas offers the greatest potential to achieve the largest CO2 reductions – at the lowest possible cost and in the shortest time duration all this, by using technology that is available today. It’s easily the cleanest burning fossil fuel – around 50 percent cleaner than coal. It’s very efficient, and combined-cycle turbines fuelled by natural gas are both quicker and relatively cheaper to build. More so, a lots of it is available and sometimes, more readily so.

Conclusion

The creation of a low-carbon economy will be far from easy and over-time, will require the whole-scale re-engineering of the global economy. It will demand a very significant investment by industry, which in turn requires a clear regulatory regime. There is a need to ensure that our children and grandchildren are not left with the unknown hazards of climate change and can keep their lights on in the future. If both these challenges can be met, it is only then has the Hydrocarbon Sector played a crucial role in this changing energy scenario.

Continue Reading
Comments

Energy

Gazprom and Europe

Published

on

Football in the 21st Century is not only a sport but a global brand in itself. Football allows others to feed and profit off of it as well. Global corporations have used this opportunity to leverage into newer markets and, or, improve their reputation in existing markets.

Gazprom; it is on players’ jerseys in Germany, in Russia, in Serbia, at games in England, and on side-lines in Italy. Gazprom is a Russian natural gas company. Teams make money offering jersey space to sponsors selling things like credit cards, cars, insurance companies and cell phones. But Gazprom is not like most sponsors: private companies with products football fans can buy. Instead, it is a company owned by the Russian government that makes money selling natural gas to foreign countries. It is everywhere in European football. So, if football fans cannot buy what they’re selling, why is Gazprom spending millions to sponsor games?

The answer is part of a larger story that’s changing the sport. Gazprom’s partnership with these clubs is mutually beneficial because they provide a crucial revenue stream to the football club while in turn gaining publicity and a foothold in key target markets in which they are hoping for an increasing profit margins they represent a successful confident company that yields significant power and influence.

It is a corporation that reflects the values and ambitions of the Russian state the company via a series of commercial partnerships and high-profile sponsorship deals is now firmly in the collective conscience of European football fans few are quite sure whatthe company stands for or what this foothold means and in any case they are largely apathetic which oddly mirrors the aims of Vladimir Putin and increased influence in Western culture becoming a major player in events without the stigma of political connections or ulterior motives. Foreign countries use companies they own to burnish their reputations abroad, and to understand why Russia is involved, one needs to closely observe a  map. Russia has the world’s largest natural gas reserves and most of the mare located in Arctic gas fields controlled by Gazprom. The company is led by Alexey Miller, a close ally of Vladimir Putin. Since 2005, the Russian government has owned a majority stake in Gazprom. Meaning company profits are under Putin’s control and gas sales, along with oil,account for around 40% of Russia’s annual budget.

Various maps showcase how European countries are on Russian gas and Eastern European countries are more dependent than countries further west. At the end of the 20th century, Germany represented the biggest opportunity for Gazprom. German Chancellor Gerhard Schroeder had announced plans to phase out coal and nuclear power, which meant Germany would need more natural gas to maintain their energy supply. Gazprom wanted to get it to them, but there was a problem. To get to Germany, Russia’s gas needed pass to through pipelines crossing countries charging Gazprom transport fees. And most of them went through Ukraine, a country that has a complicated relationship with Russia. Today, Ukraine still charges Russia $2-3 billion dollars every year to pump gas through to Europe. So, starting back in 2005, Russia began working on a strategy to bypass Ukraineand ship their gas directly to Western Europe.

This led to the birth of the Nord Stream pipeline,  a route through The Baltic Sea straight to Northern Germany.In late 2005, Gazprom was in the final stages of financing the project and Germany’s chancellor was preparing for an election. During his time in office, Gerhard Schroeder had become friendly with Putin and critics in Germany were increasingly concerned about the Russian leader’s growing influence.

Just a few weeks before the election, Schroeder met with Putinto sign an agreement officially approving the pipeline. Two months later, Schroeder lost his re-election but by March he had found a new job: overseeing Gazprom’s pipeline to Germany. It also came out that, before leaving office, Schroeder had approved a secret Gazprom loan that provided over a billion euros to finance the project. Soon, the story of Gazprom’s big project in Germany was becoming a story of scandal, corruption, and the creeping influence of Russia. But then the story changed.

In 2006, Gazprom signed a deal to sponsor the German team FC Schalke 04.At the time, Schalke’s finances were worrying team officials and Gazprom’s sponsorship provided money the team desperately needed. At a press conference announcing the deal, a Gazprom chairman said Schalke’s connections with the German energy sector were why they decided to become their sponsor. Schalke plays in Gelsenkirchen – a town in Germany’s Ruhr Valley, where much of the country’s energy industry is based. It’s also close to the town of Rehden, a hub for pipelines to the rest of Europe and home to Western Europe’s largest natural gas storage facilities.

Interestingly, Schalke was not Gazprom’s first deal. The year before, they had bought a controlling stake in a team on the other end of the Nord Stream route: the Russian team Zenit St. Petersburg. Gazprom’s investment made Zenit a major force in soccer. Two years after taking control, Zenit won their first-ever league championship. They’ve been able to sign expensive foreign stars, like Belgian midfielder Axel Witseland the Brazilian forward Hulk, and Gazrpom uses Zenit for marketing stunts: like having players scrimmage on the side of their offshore gas platform.

In 2006, as Gazprom logos were revealed around Schalke’s stadium, German headlines were hailing the Russian gas giant for pumping millions into the German team. To celebrate the deal, Schalke’s new jersey was unveiled in a ceremony before Schalke and Zenit played a friendly match in Russia. And, over the next few years, the Gazprom logo would become a team symbol displayed at Schalke games and printed on official merchandise. Schalke also won a championship in 2011 and by then, Nord Stream had been completed, and that year, Gerhard Schroeder, Angela Merkel and other European officials gathered to celebrate as it began pumping gas to Germany. There was also another struggling team whose jerseys started featuring Gazprom’s logo: The Serbian team Red Star Belgrade. Red Star was about 25 million dollars in debt when Gazprom signed to become their jersey sponsor.

And, again, there was also another pipeline: The South Stream would have bypassed Ukraine by going directly through Serbia to Southern Europe. That project closed in 2014, but Gazprom has continued increasing their access to Europe by building Nord Stream 2, a second pipeline doubling the amount of gas flowing from Russia to Germany. Gazprom has also expanded their empire to include energy partnerships with Chelsea Football Club[1], Champions League and the sport’s most famous tournament: the FIFA World Cup.

These sponsorships have made Gazprom’s logo familiar not just to fans in Europe, but across the world.“We light up the football. Gazprom. Official partner.”It’s in commercials before games, and on jerseys and sidelines once it starts. FC Schalke fans have also started to see Nord Stream 2 ads at home games. And, while climate activists like Greenpeace have staged protests to point out Gazprom’s threat to Arctic resources, Gazprom had no trouble renewing their sponsorships.

Now, Russia controls nearly half the gas consumed by Europe and other countries are learning from their example. Etihad, Emirates, and Qatar Airways all are owned by sovereign states in the Middle Eastwith interests that go beyond selling airline tickets. As the example of Gazprom shows, having a prominent footballing sponsorship offers a way around bad publicity by winning approval on the field. If you’re a fan, that can feel like a big opportunity: their money helps teams win major tournaments, but it’s starting to change the sport itself. Gazprom like so many others, is an opportunist who strives to be linked to sporting successes. Gazprom’s reasons for investing so heavily in sport could be compared to any global organization. It is a fascinating  means of advertising. It has become common to see a Serbian team sponsored by Russia’s gas company facing off against a French team sponsored by Dubai’s state-owned airline, it’s starting to seem like the field is hosting two competitions at once: A match between two teams, and a larger play for foreign influence that continues long after the final whistle.


[1] Owned byRoman Abramovich since 2012 seven years prior to this deal Abramovich sold his shares in Sibneft his oil-producing company to Gazprom for an estimated 10.4 Billion Euros.

Continue Reading

Energy

New oil pipeline in northern Thailand may worsen flooding

Published

on

A pipeline stretching from central to north-east Thailand promises to “promote Thailand as an energy hub in the region” and “increase energy security”, according to the Ministry of Energy. Construction began in mid-2019, despite local communities objecting that the largely Chinese-financed project could worsen flooding and contaminate water.

The 342km pipeline will run two metres underground and link Thailand’s north-eastern province of Khon Kaen to an existing pipeline in the central province of Saraburi. Energy Minister Sonthirat Sonthijirawong attended a ceremony on 5 February to lay the foundation of a 140 million litre oil tank in Khon Kaen’s Ban Phai district at the end of the pipeline.

Altogether, it will pass through 70 towns in five provinces including Lopburi, Nakhon Ratchasima and Chaiyaphum.

The route was agreed in August 2016, when the energy ministry signed a deal with the project investor, Thai Pipeline Network (TPN).

The ministry has promoted the pipeline as a more efficient means of transporting oil to the north-east, claiming it will lower oil prices and cut down on accidents involving road tankers.

TPN director Panu Seetisarn said the pipeline will avoid 88,000 road tanker journeys each year.

The THB9.2 billion (US$300 million) project is largely funded by a loan from the Chinese government, which stipulates that at least 35% of the equipment used must come from China. The precise details of the deal have not been made public. However, Panu revealed that TPN and undisclosed investors are investing about THB1 billion each.

The project has been progressing quickly since January last year when the government approved the environmental impact assessment (EIA) report.

In February, TPN – a subsidiary of Power Solution Technologies (PSTC) – signed a contract with China Petroleum Pipeline Engineering (CPP) to construct the pipeline within a 30-month period. And then works commenced in mid-2019.

Panu also revealed that the company wants to link the pipeline to the capital of Laos, Vientiane, and to southern China.

As well as the controversial north-eastern route, the first phase of another route, from central to north, is also under construction. The northern route is being developed with the ultimate aim of linking Tak province into Myanmar’s Kayin state at Myawaddy.

Flood risk

“This will lead to a big flood, bigger than the recent one,” said Ow, a local resident of Khon Kaen’s Ban Phai district, recalling flash flooding following tropical storm Podul that put homes under more than 1.5 metres of water for over a month last summer.

She fears the construction of an oil tank a few kilometres away will worsen flooding in future.

“Looking at its huge area and how high they have raised the land to level it for construction, [it] will definitely block all waterways,” she said, adding: “What will happen to us if there’s a big storm again?”

“After discussion with my neighbours, we [all] share the same concern and decided to file a complaint to the local authority but nothing happened,” said Ow.

The villagers’ concerns are justified, according to Jaroonpit Moonsarn, an environmental official at the Department of Environmental Quality Promotion (DEQP).

“There are two creeks, the Huay Bandoo and the Huay Khamrian, in the area that are natural waterways helping to drain waters in the district. The construction has blocked these significant waterways,” said Jaroonpit.

She believes another tropical storm in the area would create a bigger flood than the one last August.

Dust, pollution and public safety

Flooding is tomorrow’s fear, but dust is today’s suffering, said Ow, referring to air pollution caused by the construction of the oil tank that is affecting surrounding communities.

“We filed a complaint to the construction company, but they told us to complain and seek compensation from their subcontractors. It’s still unresolved. We don’t know who to talk to,” she said.

Jaroonpit also noted local concerns about the project once it’s finished, such as explosions, chemical contamination of local groundwater and heavy traffic. Road tankers will still be needed to distribute oil from the pipeline to nearby provinces, and additional tankers are expected to operate if the road to Laos is improved.

“Public safety should be seriously studied and discussed, including how to manage such risks and how to compensate,” she said.

“This involves the daily life of local people and they should have been informed clearly before the project’s construction approval, otherwise it leaves all the burden on them,” said Thawisan Lonanurak, former secretary general of the North-eastern Chamber of Commerce.

Apart from the risks to public safety, there are several basic questions about the project that need answering, according to Thawisan.

“Will oil prices in this area really be cheaper? How cheap? And most important, how transparent is the deal between the state and private investor?” Thawisan said.

“These questions should be answered at least during the EIA and hearing process, but it hasn’t happened,” he added.​

Witoon Kamonnarumet, senior advisor to the Khon Kaen Federation of Industry, said hearings for the EIA were conducted twice among a small group of people selected by the project owner and the company contracted to produce the EIA. They were not open to the general public.

“Even local businessmen in my network said they know very little about this project and are not clear on what it will really look like. We heard it would come two years ago and then there was a long silence and then construction started recently,” Witoon said.

“At the EIA hearing, most of the time was used for a company presentation focusing on what they had done in other areas,” said Paitoon Mahachuenjai, Nakhon Ratchasima’s Dan Khun Thod District head. They said that if there was “any problem during construction they would be ready to help,” he added.

Local activist Suwit Kularbwong, chairman of the Human Rights and Environment Association, said communities affected by the project have limited access to information about it.

“Where will the pipeline pass through exactly? How much area will be expropriated or compensated, and at what rate? They still don’t know. This goes against the [country’s] 2017 Constitution on public information and public participation for such a project,” Suwit said.

“This project has been initiated by the state and developed with a top-down approach, without sufficient consideration of its impacts, and with poor public participation. What will happen if more and more people along the pipeline know about the real impacts after construction and learn that they were not informed beforehand? Local opposition is foreseen. And government should be aware of this as it could affect the ongoing construction of the project,” he said.

Chinese investment and public discussion

Suwit said there is inadequate public awareness and discussion about projects and Chinese investment.

“The influence of Chinese investment in this region as well as the Mekong has been growing rapidly in recent years, without taking human rights violations and environmental impacts into account. And [it’s been] actively supported and facilitated by our Thai government.

“The key question is how ready are we for such massive investment from China? How ready is our government to protect its people’s interests from developments like this one where they are losing their land?” asked Suwit.

To address public concerns, Suwit suggested open public forums so that discussion could take place on the controversial oil pipeline and broader development plans for the north-eastern region.

“That which is missing from the past EIA process should be fixed there. At the forum, all basic project information should be available beforehand. It should be open to participation and discussion from all groups,” Suwit said.

Thawisan shared the same suggestion. “Local universities and academics should also play an important role to help digest technical and academic information for local people to understand the project properly,” he said.

From our partner chinadialogue.net

Continue Reading

Energy

How Turk Stream is forcing Europe on its heels

Sisir Devkota

Published

on

Russia laid down two gas pipelines from its territory, one from the topmost northern hemisphere, famously named as “Nord Stream” and the most advanced, latest with all rights “Turk Stream”; that passes through Turkey, a nation that now finds pride in being able to connect Russia with the rest of Europe. In recent years, European nations have heavily relied on American natural gas supplies and new set of renewables; while sanctions over Russia in the past decade primarily stalled business on both sides, Europe has now changed its language on Russia’s desire to sell oil to the continent. On paper, Europe is openly welcoming a new source of energy supplies in the name of profitable competition, yet changesare only the tip of deep lying geopolitical stakes. Turkstream was launched in the beginning of January; and so, did a brand-new Russian policy take effect that could change foreign relations in the years to come. But, why is Europe changing course suddenly?

Geographically, between the two pipelines on the north and south is Ukraine sitting ignored by Russia’s willingness, more so; it is also a statement of available options at Putin’s hand. It is well noted that Russian aspirations are serious; investing on two different routes has been costly, but the oil rich nation has caught all eyes. While Turkey is flaunting a newfound friendship on the East, other nations in the region, including Ukraine, are assessing exact Russian interests; a major miss out on economic benefits would not be rational for a set of other rather neutral nations than Ukraine. Consider the politics of language, while Nord Stream is still very vague and could include Baltic and western Scandinavia, “Turk Stream” is a prize won in the eyes of a shared Mediterranean neighborhood. It is like saying that Turkey won the rights to sell Russian reserves to European clients, that also have inhibitions against historical Turkish aspirations in the EU. Still, other reasons are held higher.

Uncharacteristically, China is behind all the insecurities in Europe. There is no secret on whether Sino-Russian ties could yield a similar energy route between two nations, both infrastructural might and President Xi’s willingness to expand the Belt & Road projects could easily accommodate energy linkups. For European leaders have realized that such possibilities could most possibly deteriorate Europe’s energy as well as economic balance. By 2030, Chinese energy needs are going to double from what it is now; Europe does not desire a vociferous Chinese demand taking away Russian reserves to the East. Alarmingly, European nations also realize that soon, a proposition as such is highly likely, given how current competition has taken down prices. After a decade of disturbing sanctions testing Russian sanctions, it will be waiting patiently for an overhaul in the form of ceiling new rate of prices. For Europe, America still might not have been redundant, but the US-Ukraine soft spot, certainly has.

The European dilemma does not end yet, for Russia has played the cards on both sides; it will have to forge a face-saving approach with Turkey, given how it has treated Ankara over issues relating to EU membership. Like an astute capitalist, Moscow is promising to feed Europe, whilst also biting into its wounds, forcing to deal with problems that may allow Russia an affirmation to jump over Chinese demands. On the backdrop of a successful Brexit, Turkey will be teasing at the European sanctity, a group that has continuously reminded it of being unsuitable. For Europe’s dislike, Russian reserves now flow through Turkish territories and might successfully ruin newly established competitors in the energy market. Underestimation has cost Europe again while Russia has lastly taken afoot. It is only the beginning of a grand Russian policy.

Continue Reading

Publications

Latest

Travel & Leisure57 mins ago

7 Spring Break Destinations That Aren’t the Beach

After winter, spring break is the welcome start of warmer weather, longer days and sun worshippers flocking to popular beaches....

Defense3 hours ago

Assessing India’s Enhanced Air Defence Shield with reference to Pakistan’s MIRV Capabilities

Since the last few years, India has been continuously carrying out an extensive military modernization program aimed at enhancing its...

Newsdesk6 hours ago

Empower Women to Fight Corruption: Dr Wan Azizah

Malaysian Deputy Prime Minister Dr Wan Azizah Wan Ismail called for more engagement and collaboration “to ensure women from all...

EU Politics8 hours ago

EU Interreg programme celebrates 30 years of bringing citizens closer together

The year 2020 marks 30 years since the start of Interreg, the EU’s emblematic programme that aims at encouraging territorial...

Americas10 hours ago

Impeachment & Intervention: Where American Foreign Policy Goes Wrong

To any ordinary American citizen, it’s well known that government spending is spiraling out of control. The U.S. budget deficit...

Eastern Europe12 hours ago

President Zelensky at the MSC 2020: An Epistemological Shift toward Reconciliation

On Saturday February 15, Ukrainian President Zelensky reiterated his pledge to end the conflict in the Donbas during his tenure,...

Americas14 hours ago

Former Senator Moise Jean-Charles to Win the Next Haitian Presidential Election

The former Senator, Moise Jean-Charles is the founder and leader of the powerful political party called Platfòm Pitit Desalin or...

Trending