Dialogue as Equals. Guests: Grigory Berezkin and Alexander Dyukov
KEY CONCLUSIONS
Russia’s energy system has a high level of stability and great potential for development
“As far as the Russian energy sector is concerned, we have a margin of safety for both oil and gas. Gazprom Neft has spare capacity that we use to boost production in accordance with the schedule set by OPEC+. Moreover, we are increasing investments and making additional investments in the second half of this year in order to create reserve capacities for the possibility that oil production may increase next year. Next year, we will be able to boost the production of liquid hydrocarbons and oil by 10%. As for the situation on the domestic market – gas, electricity, and petroleum oil products – frankly, we don’t see any problems. There’s no deficit and prices are stable,” Gazprom Neft Chairman of the Management Board and CEO Alexander Dyukov said.
“Today, the Russian energy system and all the world’s energy systems are rather well-managed, large-scale, colossal organizations and systems. And what do you need to get some sort of business? Money, technology, products. That’s all correct. But you need one more thing – you need a problem, preferably, as it paradoxical as it is, the larger the problem, the better. Because all knowledge, aspirations, developments, and everything else will remain on the shelf if none of it solves some specific pressing problem,” said Grigory Berezkin, an entrepreneur, the owner of RBC, and a member of the Bureau of the Russian Union of Industrialists and Entrepreneurs.
Human resources are the foundation for development
“The oil industry is an industry in which it is currently interesting to work. It’s a science-intensive and innovative industry, and it constantly generates some new innovations and forces related industries to also produce these innovations. For our part, we are trying to do everything we can so that former students are already well prepared when they come to our company. We have developed and are implementing a cooperation programme with various universities. These include dozens of universities. We have 21 joint master’s programmes with various universities from Tomsk to St. Petersburg. We have nine scientific and educational centres and laboratories. Each year, around 2,000 students undergo on-the-job training at our enterprises,” Gazprom Neft Chairman of the Management Board and CEO Alexander Dyukov said.
“The business of the 1990s and today is very different. Nowadays, you can make a rather big business for yourself without any investment at all, or without any big investments, for sure. All you need is knowledge, your experience, definitely your energy, and a few other components. In a sense, my mission is to get as many people as possible involved in business. Because I think we all perfectly understand that only business creates new jobs, and that only new industry and new projects create taxes. The social sector emerges from here and generally raises people up. Of course, this involves realizing desires as well as certain plans and dreams,” said Grigory Berezkin, an entrepreneur, the owner of RBC, and a member of the Bureau of the Russian Union of Industrialists and Entrepreneurs.
PROBLEMS
A lack of uniformity in the development of global energy markets
“We see the crisis on the European gas and electricity market. As for the Russian market, there are no problems in principle. The European gas and electricity market is a problem. This includes a shortage [of energy] and, as a result, high prices. Much has been said about this during Russian Energy Week, and it’s a combination of negative factors and events, ranging from natural phenomena and cataclysms. A cold winter, followed by a hot, windless summer, and, consequently, a decline in the water level in Turkey, and the need for countries that rely on hydropower to switch to gas,” Gazprom Neft Chairman of the Management Board and CEO Alexander Dyukov said.
“Russia has roughly 100 coal and gas thermal power plants. Moscow is home to around 20 of them. They are working at only 48–50% capacity. The market and consumers pay for electricity and capacity as [if they’re operating at] 100%. This is generally a universal problem. In different countries, it manifests itself to one degree or another, but it exists everywhere. And it’s definitely not a matter of frugality or bad management,” said Grigory Berezkin, an entrepreneur, the owner of RBC, and a member of the Bureau of the Russian Union of Industrialists and Entrepreneurs.
SOLUTIONS
Search for alternative ways to generate and conserve energy
“We need to invest and develop our new energy. This includes renewable energy sources, the atom, hydrogen energy, and the use of technologies to capture carbon dioxide. These technologies and new products should enable us to extend the life cycle of our traditional energy carriers, hydrocarbons, including gas,” Gazprom Neft Chairman of the Management Board and CEO Alexander Dyukov said.
“An important focus of work is to reduce carbon intensity. We aim to reduce our carbon intensity by a third by 2030 by improving our energy efficiency and reducing the flaring of associated gas. We need to look at opportunities to diversify our business and create new products and technologies for the new energy order. Oil companies are already producing hydrogen from methane. This hydrogen is called ‘grey’, but by applying technologies to capture, pump, and store carbon dioxide, we can make this hydrogen ‘blue’. But de facto it will be ‘green’, since it will have a low carbon footprint,” Gazprom Neft Chairman of the Management Board and CEO Alexander Dyukov said.
“The highest peak electric capacity – 8 GW, which is a rather large power system, of which the country has several – operates for several weeks a year in the winter. If these 8 GW could be replaced with a demand management model, we wouldn’t be doomed to constantly pay for capacity reserves. And this, of course, is a green business, because right now when consumption is reduced, coal is not burned and gas is not burned. If we manage to fully replace the peak load in our country through demand management, we will be able to reduce emissions by 16 million tonnes of carbon dioxide per year. This is equivalent to about 4.7 million cars not actually emitting carbon dioxide. That’s how many cars there are in Moscow,” said Grigory Berezkin, an entrepreneur, the owner of RBC, and a member of the Bureau of the Russian Union of Industrialists and Entrepreneurs.
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