• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 6 hours Russian Effect: U.S. May Soon Pause Preparations For Delivering F-35s To Turkey
  • 6 mins One Last Warning For The U.S. Shale Patch
  • 5 hours New Rebate For EVs in Canada
  • 6 hours China's Expansion: Italy Leads Europe Into China’s Embrace
  • 5 hours Poll: Will Renewables Save the World?
  • 54 mins Chile Tests Floating Solar Farm
  • 4 hours Trump Tariffs On China Working
  • 8 hours The Political Debacle: Brexit delayed
  • 20 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 23 hours No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 8 hours Biomass, Ethanol No Longer Green
  • 4 hours 3 Pipes: EPIC 900K, CACTUS II 670K, GREY OAKS 800K
  • 14 hours Boeing Faces Safety Questions After Second 737 Crash In Five Months

Global Energy Advisory – 1st May 2015

Geopolitics

Russian Oil and Gas: The Squeeze Is On—Sort of

European Union regulators have formally charged Gazprom with abusing its dominant market position in Europe—a charge a long time (2.5 years) in the making and a move that will likely increase tensions with Russia. According to the European Commission, Gazprom has significantly hindered competition in Central and Eastern European gas markets, and has infringed on European single-market rules by forbidding the resale of its gas between EU countries, allowing it to charge unfair prices. Furthermore, Gazprom may also have abused its dominant market position by making the supply of natural gas dependent on obtaining unrelated commitments from wholesalers concerning gas transport infrastructure. Gazprom risks fines of up to 10% of the company’s overall sales. Overall, however, we note that the charges the European Commission laid against Gazprom aren’t nearly as hard-hitting as many expected them to be (though we personally weren’t really expecting much). In fact, Gazprom shares at the Moscow stock exchange took a tiny dip and then recovered almost immediately. So much for that.

So what next? Gazprom now has 12 weeks to reply and can also request an oral hearing to present its arguments.

At the same time, the United Kingdom will force Russian billionaire Mikhail Fridman to sell a dozen North Sea gasfields owned by his $10b-billion energy fund, LetterOne (L1) Energy. He…




Oilprice - The No. 1 Source for Oil & Energy News