A policy of sanctions has been
implemented with the aim of hindering economic growth in countries that are
displeasing to the US. However, the countries which have been put under
sanctions have benefitted from additional opportunities and development. Such a
policy pushes countries to free themselves from a dependency on imports, and to
develop their infrastructure. Challenges need to be addressed, and multilateral
cooperation is required in order to secure economic growth, ensure development,
and improve people’s quality of life. This was the conclusion reached by
participants attending the Global Energy Award Ceremony. The session, entitled
The Global Oil and Gas Market: Navigating a Period of Turbulence, took place as
part of Russian Energy Week.
KEY CONCLUSIONS
Sanctions have spurred countries to take optimal
decisions
“If we focus on the
Asia-Pacific region today, and develop infrastructure and friendly ties
accordingly, then it becomes clear that energy consumption in the future will
mainly centre specifically on this region. We were also working on this before
[the sanctions – ed.]. All that’s happened is that we have been spurred
on to make the decisions we have regarding the development of port, highway,
and pipeline infrastructure; boosting the liquefied natural gas sector; and
increasing production. That is because, as our President has said,
regasification terminals already exist in 55 countries, and this number is
going to grow,” Alexander Novak, Deputy Prime Minister of the Russian
Federation.
Approaches to the
global energy agenda are changing
“As far as fundamental factors
are concerned, we are seeing a change of approach to the climate agenda.
<...> It has become more sensible, more proper. This is also true of
approaches to assessing the energy transition and the fourth energy revolution
which we have been going through in recent times. <...> There is no need
to artificially change the energy mix; it should be an evolutionary process,
which is what we are seeing today,” Alexander Novak, Deputy Prime Minister of
the Russian Federation.
PROBLEMS
A lack of investment in the global energy sector
“For several years now, we
have been living in a state of underinvestment in the global energy sector.
Whereas the oil sector used to invest around USD 700 billion per year, in the
past few years investment in the sector has been around USD 350–400 billion.
Global underinvestment has already exceeded the USD 1 trillion mark in just a
few years. And we are very well aware that within a few more investment cycles,
hydrocarbons will take a dominant place in the energy mix at the very least.
That is because in order to ensure that the global economy has a steady supply
of energy resources, there needs to be a return on investment, and the
conditions need to be put in place to enable the sector to operate in a stable
manner,” Alexander Novak, Deputy Prime Minister of the Russian Federation.
Short-sighted
policies
“We can see false pride
manifest itself in Europe. They do not want to admit their catastrophic errors.
However, sooner rather than later, they will have to sit down and think about
how to restore normal [energy – ed.] supply chains,” Radovan Viskovic,
Prime Minister of the Republic of Srpska.
SOLUTIONS
Taking a more
proactive approach to switching over to national currencies for payments
“We have taken purposeful
steps towards ensuring the stable operation of our fuel and energy sector. I am
referring to switching over to national currencies in our trade with friendly
countries. Today, we have minimized our trade done in the dollar or euro, and have
switched over to settlements in roubles and other currencies. <...> This
trend is not limited to our country,” Alexander Novak, Deputy Prime Minister of
the Russian Federation.
“The energy market works
in dollars. <...> However, the US itself accounts for just 20%. The
secret lies in de-dollarization,” Delcy Eloina Rodriguez Gomez, Executive Vice
President of the Bolivarian Republic of Venezuela.
Employing digital
settlement solutions
“There are problems associated
with mutual settlements. However, we can move towards digital settlements and
use blockchain technology. Then we won’t need any global currency here. This is
a totally different approach. In order to get there, we need to join forces and
work together in this area. That includes under the BRICS umbrella, which is
gradually expanding,” Alexander Novak, Deputy Prime Minister of the Russian
Federation.
Developing science
and innovation in efforts to move away from import dependency
“In our efforts to attain
technological sovereignty, we have secured an enormous order – trillions of
roubles generated by the oil and gas industry for our industry, science, higher
education institutions, and academic institutions. We have learned to make
things that we used to buy. A few years ago, the oil and gas industry was 60%
dependent on imports. Today that figure is 30%. The Government of the Russian
Federation has set the objective of attaining technological sovereignty for all
key technologies. This work is being done in cooperation with oil and gas
companies, both as customers, and as industrial enterprises,” Alexander Novak,
Deputy Prime Minister of the Russian Federation.
“Thanks to our efforts
and the initiatives of our specialists in the oil and gas sector, we have
become self-sufficient. <...> We have the ability to manufacture a great
many different turbo compressors, turbo generators, pumps and equipment that
are used in oil production and refining, both on land and offshore. <...>
With all the support and resources we’ve had over the last 40 years, we have
been able to become self-sufficient in all sectors while under sanctions. Not a
single foreign advisor can be found at our production sites,” Javad Owji,
Minister of Petroleum of the Islamic Republic of Iran.
Diversifying
markets and routes
“Turbulence has served to
demonstrate that more diversification is needed. That is also true of supplier
countries which are not only interested in diversifying markets, but routes as
well. Azerbaijan has always been guided by this principle. The country well
understood that this path would always serve the interests of stability on the
market, and would assist with the implementation of its plans. We have
diversified our markets and routes to a fairly large extent. Today, our oil
goes to the international market via Turkey. And our gas transportation routes
have also been diversified,” Parviz Shahbazov, Minister of Energy of the
Republic of Azerbaijan.
For more information, visit
the Roscongress Foundation’s Information and Analytical System at roscongress.org/en.
The Russian Energy Week
International Forum is a key global platform for discussing current trends in
the development of the modern fuel and energy sector. This event is
traditionally held at the highest level, featuring the participation of leaders
from the largest companies in the energy industry. In 2022, more than 70
events, with the involvement of over 270 speakers, were held as part of REW.
The Forum attracted over 3,000 participants and media representatives from
Russia, as well as 83 foreign countries and territories. The Forum is organized
by the Roscongress Foundation and the Ministry of Energy of the Russian
Federation, with the support of the Moscow City Government.
Official website of REW: rusenergyweek.com. For news
about the event and the industry, please follow the official REW page on VK.
