The New Energy Agenda and Russia’s Global Leadership
Maintaining Russia’s leadership on the energy market is an overriding priority
Today, the key task is to ensure Russia’s entry into the world’s top five economies. Clearly, the Russian fuel and energy sector is already a world leader, however, given all the trends <…> related to the changing energy landscape, maintaining leadership is a great and serious task — Alexey Texler, Acting Governor of Chelyabinsk region.
We are dealing with a market which is growing. In this situation, generation may become very important — Denis Fedorov, General Director, Gazprom Energoholding.
Negative impact of sanctions
Owing to the sanctions, Russia has is facing the need to become self-sufficient. Yet the greatest risk remains loss of Russia’s positions on the global energy market — Adi Karev, Global Oil and Gas Sector Leader at Ernst & Young.
2008 was the last year when oil companies developed technologies together with Russian contractors. After that, the price of oil dropped sharply and the main priority for oil companies became to get equipment at the lowest possible price. <…> Partly, oil companies began to set up their own research centres. <…> This did not prove a very efficient choice <…> from the point of view of using such equipment on the highly competitive market — Maksim Perelman, General Director, Novomet.
Regulation lagging behind technological changes
Decades ago, technologies involving millions of people took some 70 years to develop (for example, planes), yet today, it takes just a couple of years. Even so, our bureaucratic machine is so slow that any more or less complex bills take up to three years to pass. <…> If renewing corporate strategies takes years, we will not only fail to maintain our leadership, we will be late everywhere — Grigory Vygon, Managing Director, VYGON Consulting.
Creating clear rules of the game on the market
What is needed is the set of measures we have prepared and are promoting together with the Energy Ministry. This includes long-term tariffs, normalizing privileged connections, reference adjustment; this is the issue of not cancelling privileges that cannot be compensated for by raising tariffs such as property tax; this is payment for contracted capacity <…> We have to prevent loss of consumers — Pavel Livinsky, Chairman of the Management Board, PAO Rosseti.
This competition is for entry on to this market <…> with respect to offering better conditions for consumers, including by agreement with regional authorities — Vitaly Korolev, Deputy Head, Federal Antimonopoly Service of the Russian Federation (FAS Russia).
Development strategies must consider energy issues
Drafting of the strategy for the country’s spatial development is almost complete. It must not be separated from the Energy Ministry — Alexey Chichkanov, Executive Vice President, Head of the Public–Private Partnership Center, Gazprombank.
For competition to develop normally, there must be conditions for creating independent oil companies, or the model of the gas market will change — Grigory Vygon, Managing Director, VYGON Consulting.
Intensive introduction of new technologies, comprehensive approach to import substitution
Technological test sites are a tool for global development. This year, we have built one such test site in the Khanty-Mansi Autonomous District. All this is happening with government support and this project has been given national status. We are opening up free access there and awaiting startups — Aleksey Malyutin, Head of Prospective Development Department of the Exploration and Production Unit, PJSC Gazprom Neft.
At this point, not a single company, however large it might be, is able to create all the necessary equipment for the fuel and energy sector. There is a need for cooperation among participants in the import substitution process. And, talking about production localization <…> it must be a fully comprehensive approach, including research, engineering solutions and then serial production — Oleg Zhdaneev, Head of the Development and Production of Oil and Gas Equipment Department of Technology Company Schlumberger.
Providing conditions for investment in the fuel and energy sector
Such initiatives of a regulatory nature already exist: taxes, development of competition in the oil and gas sector. In the first case, I am referring to our initiative to introduce an excess profits tax and develop LNG plants. <…> We have huge resources that we shall and must monetize — Alexey Texler, Acting Governor of Chelyabinsk region.
The risks and challenges that exist must be recognised. On more than one occasion, I have heard from many managers in the oil and gas industry that there is no LNG, no shale gas, that electric cars do not threaten the demand for oil. Yet, if we fail to acknowledge these risks, we will not be able to respond to them — Grigory Vygon, Managing Director, VYGON Consulting.
The material was prepared by the Russian news agency TASS