Russia to increase oil exports to Asia | india | Hindustan Times
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Russia to increase oil exports to Asia

Russia has offered to increase crude oil exports to Asia for ensuring energy security and reduce risks for the region.

india Updated: Nov 25, 2005 17:32 IST

Russia, world's second largest oil producer, today offered to increase crude oil exports to Asia for ensuring energy security and reduce risks for the region.

Speaking at the Asian Oil Ministers Round Table, Russian Industry and Energy Minister Viktor B Khristenko said Russia is prepared to assist in the taks of ensuring energy security and hence reduce risks (by) increasing exports, diversify the commodity structure and increase the volume of higher- processed commodities.

We will also take steps to stimulate foreign investment in to the country and develop new forms of international cooperation and create mechanisms for coordinating the state policy of regulating foreign trade in the energy sphere, he said.

Currently, Russia exports over 90 per cent of its energy to Europe but was looking closely at Asian and Pacific destinations. We forecast Asia's share in Russian oil exports to grow from today's 3 per cent to 30 per cent in 2020, a proportion corresponding to 100 million tonnes. Asia's share in our gas exports could grow from the current 5 per cent to 25 per cent, which would make 65 billion cubic meters," Khristenko said.

The International Energy Agency estimates that growth of energy demand in Asia at 3 to 4 per cent annually in oil and 4 to 6 per cent in natural gas, which makes Asia, the most rapidly developing market in the world.

Most forecasts today estimate that global energy consumption will rise by a third in the coming 15 years and by about 45 per cent in the coming 20 years.

Global demand for oil might grow by 35 million barrels per day by 2025 (which is 42 per cent higher than today), and for gas by 1.7 trillion cubic meters per year (which means a 60 per cent increase.

The Russian Minister called for stabilisation of energy markets by developing global and new regional energy markets and ensuring greater access to them and the transparency of data on reserves, demand, stocks and production capacities.

Efforts for long term energy security, he said should involve countries, major suppliers of energy resources, as well as countries posting the highest energy consumption growth levels.

Global energy security initiatives would give well-balanced energy resource markets especially the oil market, establishment of a new global market for liquefied natural gas (LNG), attracting investments into the energy sector's development and its transport infrastructure and exchanging technological advances.

We firmly believe that the stability, security and sustainability of the hydrocarbon economy of Asia can not be ensured without solving solving the problem of global energy security. Only by balancing this issue at the global, regional and national levels can we correctly identify, diversify and meet the risks of economic development, he said.

An effective management of non-political risks directly in the hydrocarbon sector of the economy was possible through greater access to and the transparency of data on reserves, demand and stocks; market predictability through broader use of long-term contracts and dialogue between energy producers and consumers; and efficient development of energy infrastructure in the interests of the market, he added.