The energy agenda of the fourth Eastern Economic Forum continued on 12
September with the panel session ‘New Energy Markets: The Far Eastern Vector’,
which featured a discussion of the development of cooperation with countries of
the Asia-Pacific region, the potential of new projects, the forecast for growth
in global energy consumption, and Russia’s advantages in the industry.
“Energy is the cornerstone of the economy and the driver of the
country’s development. Energy is being currently being transformed and new
sources of energy are emerging. Huge sources of resources are concentrated in
the Far East. More than 16% of natural gas reserves are located here despite the
fact that only 6% of them have undergone a geological study. This region has
great prospects and opportunities for the development of the oil, gas, coal,
and electricity industries”, Russian
Minister of Energy Alexander Novak said in his speech.
Novak added that the President’s goal of rapidly developing the Far East
would be impossible without cooperation with APR countries. “Cooperation with
the countries of the Asia-Pacific region is a priority for us today because
this market is developing at a faster pace and energy consumption will grow
twice as fast as the world average: 60% of the world’s population resides in
APR countries”, he said.
Novak also noted the importance of cooperation with Western partners, in
particular with the United States. “The energy world is global. Russia and the
United States are the largest energy powers. There will be a meeting tomorrow
with U.S. Energy Secretary Rick Perry, which will provide an opportunity to
discuss our further cooperation. We have difficult relations in the energy
industry, but we believe that such meetings are useful for assessing the
current situation”, Novak said.
Asked about the situation with world oil prices, Novak noted that the
situation on the market has stabilized in general. “The agreement signed in
2016 on restricting oil production between OPEC countries and 11 other
countries was the right decision. The past two years have shown that the market
has rather quickly emerged from the crisis. However, production has not
recovered in all countries – there has been a reduction in Mexico and
Venezuela”, Novak said, noting that with Iranian oil market being taken off the
market, it is essential to closely monitor the situation and make the right
decisions.
The minister noted that the next meeting of the OPEC+ ministerial
monitoring committee will be held on 23 September in Algeria, where they will
discuss how to balance supply and demand for oil in the third and fourth
quarters of 2018 and the first half of 2019.
Describing the situation in the Russian energy sector, Novak noted there has been progress in all areas. “Over the past 5 years starting from 2012, oil exports have doubled to 80 million [tonnes], or 1,600 barrels per day. For gas, the growth rate remains at a low level, but with the introduction of the Yamal LNG project, we will double supplies. A strategy has been adopted to increase LNG exports to 550 million tonnes, with APR countries accounting for 70% of this consumption”, he said. He noted that growth in LNG supplies will enable Russia to fill a niche and increase its share on the global market to 20%.
“We believe that the coal industry also has potential. Energy
consumption will grow at a high rate, and all sources of energy will be
utilized”, Novak said.
Novak added that scientific and technological progress is one of the key
issues in energy supply today. “We can only predict what scientists will invent
in the near future, but the long-term forecast is extremely difficult. The
industry will develop very quickly, and much will depend on new technologies,
machine learning, and artificial intelligence”, Novak said.
The panel session ‘New Energy Markets: The Far Eastern Vector’ was also
attended by Deputy Chairman of the Gazprom Management Board Alexander Medvedev,
Sovcomflot President and CEO Sergey Frank, NOVATEK First Deputy Chairman of the
Management Board Lev Feodosyev, State Grid Corporation of China Chairman
Yinbiao Shu, and Japan Oil, Gas and Metals National Corporation Chairman and
Chief Executive Officer Tetsuhiro Hosono.
The energy agenda, which was broadly represented
at the EEF 2018, will be continued during the Russian Energy Week International
Forum in Moscow on 3–6 October, during which representatives of the government
and energy leaders will be able to discuss all aspects of the energy industry
as well as the latest technologies that Russia can export. REW 2018 guests will
also have an opportunity to learn about proven strategies on the global oil and
petrochemical markets and discuss whether the coal industry will continue to
drive growth in the economies of developing countries. In addition, the Forum
organizers will hold sessions dedicated to the pressing issue of alternative
energy and renewable energy sources.
