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12/9/06

MyWestTexas.com - Kremlin control of natural gas routes to Europe stokes Western unease - Will there be a Gas Cartel soon?


For the complete report in MyWestTexas.com click on this link

MyWestTexas.com - Kremlin control of natural gas routes to Europe stokes Western unease - Will there be a Gas Cartel soon?

A recently leaked confidential study by NATO economic experts warned Russia may be seeking to build a gas cartel including Algeria, Qatar, Libya, the countries of central Asia and perhaps Iran and cautioned that kind of OPEC-like near monopoly would strengthen Moscow's leverage over Europe. As in the Cold War, Europe is the most vulnerable. It now imports just over half of its energy needs but will depend on outside suppliers for 90 percent of its oil and 80 percent of its gas within 20 years. "With gas, control over pipelines is crucial," says energy expert Michael Klare. "Once you put oil on a tanker you cannot control it, but gas is different; whoever controls the pipelines controls the flow." Like NATO, U.S. officials also are warning of the dangers of allowing Russia a free hand in monopolizing gas shipments. And the European Union is trying -- without success so far -- to pry open the Russian grasp on gas and gas pipelines supplying EU member countries. In October, Russian energy giant OAO Gazprom announced it would develop the huge Shtokman gas field without foreign partners, in a fresh setback to western oil companies looking to exploit the nation's vast hydrocarbon riches.

Western concerns reflect a growing understanding that in the 21st century control of energy has become more than ever before a weapon of geopolitical advantage.

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