As the U.S. and other countries look for new and reliable energy supplies, Russia is finding new and reliable sources of income. The country sells five million barrels of crude and oil products per day on the international market; second only to Saudi Arabia.
In the last two years alone, Russian oil production rose by more than a million barrels per day and four of its biggest oil companies last week announced plans to build a $1.5 billion Arctic oil port that could supply as much as 10% of American crude in the future.
No tears will be shed in Washington or Moscow over OPEC’s demise. The U.S. doesn’t appreciate the cartel’s spotty record in providing steady supply at a stable price. By helping Russia’s private energy companies become a global force, the U.S. can kick its Middle Eastern oil habit, and maybe bring down OPEC in the process.
Source: Borut Grgic (School of International Service), From Russia With Love, The Wall Street Journal, December 5, 2002.
For text (WSJ subscribers)
http://online.wsj.com/article/0,,SB1039057744902791353-search,00.htm
For more Gasoline and Petroleum http://www.ncpa.org/iss/ene/
FMF Policy Bulletin/18 February 2003
