Oil in the Russian Economy

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Oil in the Russian Economy

• By Eugene Hohlov

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Plan
History Of Russian Oil
Exportation of Russian Oil Today
Future of Russian Oil
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Plan
History Of Russian Oil
Exportation of Russian Oil Today
Future of Russian Oil
4
History of Russian Oil

• Russian Empire, Czar ruled, pumped oil from
  Azerbaijan

http//www.users.qwest.net/kryopak/OilGasNews.htm
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History of Russian Oil

• Nationalization (Revolution)
• Lenin
• Natural resources (Gas Oil) belong to the
  government after 1917

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History of Russian Oil

• WWII Enemy at The Gates
• Stalingrad

http//www.thehistorychannel.co.uk/classroom/gcse/
pics/stalingrad_map.gif
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History of Russian Oil

• Oil Found West Siberia Komi Volga / Ural

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History of Russian Oil

• Early Nineties (1991-1992)
• Collapse of Soviet Union
• Caspian Sea Oilrigs become part of Azerbaijan
• Privatization of Oil Industry
• Creation of new independent companies
• Yukos
• Sibneft
• TNK

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History of Russian Oil

• Oligarchs friends of ex-president
• Berezovsky (ex-richest person in Russia) owned
  Sibneft oil
• Outstanding warrant on his arrest, assets
  confiscated
• Currently lives in London
• Khodorkovsky
• Worth 8 billion (the richest man in Russia)
  owns Yukos oil
• Currently lives in jail awaiting trial, assets
  frozen
• Abramovich (future richest person in Russia) owns
  Sibneft oil
• Worth 5.7 billion
• Lives in London, selling off his assets. Future
  target for arrest

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History of Russian Oil

• 1st Civil War for oil 1994-1996
• Chechnya
• 45
• of Russian oil

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History of Russian Oil

• Czar
• Revolution
• WWII
• After WWII
• Early Nineties
• Chechnya

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The Game Plan
History Of Russian Oil
Exportation of Russian Oil Today
Future of Russian Oil
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Russian Oil Today

• Number 1 Producer of oil in the world (2002-2003)
• Russia is pumping 8.3 mm bpd
• OPEC
• Number 2 Exporter of oil in the world
• Russia is exporting 5.4 mm bpd
• More than 25 Of Russias Revenue is from Oil
  Exportation

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Russian Oil Today

• Capital
• Old equipment
• Starting to improve
• Schlumberger
• Baker Hughes
• Halliburton

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Russian Oil Today
http//www.lib.utexas.edu/maps/commonwealth/soviet
_pet_deposit_82.jpg
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Russian Oil Today

• Foreign investors
• Improving efficiency of oil extraction
• To reduce dependency on Middle East
• China
• Japan
• Europe
• United States

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Russian Oil Today

• International Companies Invest in Russian Oil
• ExxonMobil (largest company)
• Reserves of more than 21 billion barrels of oil
• ? Looking to buy YukosSibneft (9.8 bn barrels) ?
• ? YukosSibneft (4th largest company) ?
• Maraphon
• Invested in one of Ural oil companies
• ChevronTexaco
• ? Looking to buy a share in YukosSibneft ?
• BP invests 1/8th of all capital into Russia
• Bought 50 of TNK
• Forming TNK-BP

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Yukon-Sibneft

• On November 28, 2003 YukosSibneft merger called
  off.
• Yukos Stock in freefall
• Government interference

http//news.bbc.co.uk/2/hi/business/3245884.stm
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Russian Government

• Increased Taxation
• Nationalization of Oil Fields?
• War against Oligarchs

http//www.jbs.org/error_docs/not_found.html
www.dulug.duke.edu/ icon/pictures/
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Plan
History Of Russian Oil
Exportation of Russian Oil Today
Future of Russian Oil
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Future of Russian Oil
?

• The latest events lead to ?
• Government controlled oil fields?
• Oligarchs stay in power?

http//www.mcli.dist.maricopa.edu/show/magic/image
s/crystal-ball.gif
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Future of Russian Oil

• Chechnya 1st 2nd Civil War
• 45 of oil produced was produced in Chechnya

http//www.ciai-s.net/chechnya.jpg
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Future of Russian Oil

• World problems with Middle East
• Increases Russias exports of oil
• OPEC has no control on extraction and exportation
  of Russia oil
• Russia promises to join and follow?
• Government ?
• Oligarchs ?

www.index.hu/politika/ kulfold/irakmiert
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Future of Russian Oil

• Doubling of Taxation on export of oil
• Government making 25 of its revenue
• More expensive to export
• Effect of drop in price on oil
• Exportation
• Extraction
• Investment

temagami.carleton.ca/jmc/ cnews/22101999/taxes.jpg

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Future of Russian Oil

• Long Term Goals
• Build Refineries
• Produce inside
• Kerosene
• Mazut
• Aircraft fuel
• Gasoline

http//www.godardgallery.com/oil6.htm
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Future of Russian Oil

• What is Better?

Oligarchs
Government
?
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Questions?