Abstract The Arkutun-Dagi Project was executed by the Sakhalin-1 Consortium, operated by Exxon Neftegas Limited, an ExxonMobil affiliate, between 2009 and 2014 and achieved first oil production in January 2015. The project develops the Arkutun-Dagi Field, part of the Sakhalin-1 development offshore Sakhalin Island, Russia and is located approximately 25km off Sakhalin's north-eastern shoreline in about 35 meters of water. Production operations are carried out in the seismically active, harsh sub-Arctic environment of the Sea of Okhotsk. The Arkutun-Dagi Project comprises four major sub-projects: a major expansion of the Onshore Processing Facility (OPF), offshore production and water injection pipelines, the 160,000 ton ice-resistant gravity based structure (GBS), and the Berkut platform topsides with integrated drilling rig, 45 slot well bay, production equipment and living quarters. The Berkut platform is one of the largest offshore oil and gas installations in Russia and set an industry record for floating installation when the 42,000 ton topsides were installed in 2014. Project execution was a worldwide effort, with facility modules and platform topsides constructed in Korea, GBS and drilling derrick constructed in Russia and engineering, fabrication and execution support from Russia, Asia, Europe and the USA. Development drilling is ongoing to achieve peak production of 90,000 barrels of oil per day. In 2015, the project achieved the world's longest alternate-path, open-hole gravel pack, with a length of 3,700 feet. Internal Shunt Alternate Path sand control screens and zonal isolation packers enabled the successful gravel pack. The project managed challenges associated with a complex regulatory regime, harsh environment, lack of infrastructure, limited skilled labor and difficult logistics. All the challenges faced by the Arkutun-Dagi Project were managed by a fully integrated project team. This team approach fostered the development of innovative technologies and execution strategies that led to the ultimate success of this megaproject.

Abstract History has told us that no year in gas is ever the same as the previous or the next one. A golden age of gas can easily turn to stone (and back again) as a result of a sudden regional imbalance of supply and demand or a change in regulatory, economic or political conditions. This unpredictability reminds us that gas, unlike oil, is still far from being a global market, despite significant recent advances in LNG carriage and the completion of major transnational pipelines. The huge divergence in gas prices between the US and Japan particularly reflects this. In moving through these "interesting times" for gas, Russia and the Middle East have more in common than a casual observation might suggest. In a fascinating paper which draws upon his extensive experience of both gas markets, Ken McKellar, Deloitte's Middle East Energy & Resources Leader, will uncover these common interests and how they can best be developed for the benefit of both regions and the world at large. Russia and the Middle East both supply gas to Europe and to Asia. In theory that makes them competitors. They are also both affected by Chinese demand and North American supply and in theory, that gives them a common cause. Should Russia and the Middle East be enemies or friends? The effects of growing gas-to-gas competition The European and Asian gas markets are in flux. Gas-to-gas competition is rapidly growing in importance, with lower-priced spot supplies increasingly undermining the higher-priced long-term supply contracts that have traditionally dominated the market. As a result, Russia and the Middle East are being forced to adapt to the more liberalized practices of European and Asian markets. On the basis that "a problem shared is a problem halved" there may be merit in Russia and the Middle East co-operating to supply these markets in a way that they have not achieved before. Long-term, oil-indexed contracts are under serious scrutiny as overall demand for gas decreases in Europe, while new, non-Russian, non-Middle Eastern sources of supply increase. Shale gas in the U.S. has freed up Liquefied Natural Gas (LNG) - - originally designed for American ports - - to address European and Asian spot markets. As a result, spot prices are now lower than the oil-indexed prices of Russian and Middle Eastern contracts, with the result that gas from these sources have become among the most expensive in the world. The extent of this shift is illustrated by France, a champion of nuclear power, increasing its imports to over 16 billion cubic metres (bcm) despite flat domestic consumption. Another example of this shift is in the U.K. where the spot prices at the virtual trading hub there, the National Balancing Point (NBP) are increasingly recognised in the market as independent benchmarks. To achieve this shift in 2011 the NBP attracted 22 bcm of alternative gas supplies, 85 percent of which was sourced from Qatar, bringing Qatar's total share of the European gas market to over 10 percent. With Belgium and the Netherlands physically connected to the U.K. where the NBP lies, European spot price influence is spreading eastwards towards the German border, where Russian gas prices have been fixed through long-term contracts. As a result, the big Russo-German pipelines, which were necessarily financed by long-term contracts and have formed the backbone of European supply over the past 50 years, are operating at less than full capacity. Key participants in the European gas market have acted accordingly. Statoil signed a GBP 13billion NBP-anchored supply agreement with the U.K.'s Centrica, which in turn signed a 3.26 bcm per year deal with Qatar. Spain's Gas Natural has contracted to receive LNG based on U.S. Henry Hub prices from 2016-17 onwards, following BG Group. As a result, in 2011, almost half of Europe's gas contracts were concluded outside longterm contracts.

Abstract In recent years, as Northeast Asia economy has gained momentum, Northeast Asia has been among the regions witnessing the fastest growth in energy consumption around the world. Meanwhile, the raising awareness of environmental protection has also resulted in an increasing value of natural gas which is a relatively clean fossil energy. Base on that, the consumption of natural gas is continually growing which taking more shares in primary energy consumption mix gradually. But the distribution of natural gas resources in Northeast Asian countries is seriously uneven. In particular, Russia has huge export potential due to its abundant natural gas reserves; whereas China, Japan and South Korea have already imported natural gas on large scales, with an imported volume of LNG accounting for more than 60% the world's total; Mongolia and North Korea are two potential gas import countries. Natural gas demand in Northeast Asia is expected to maintain a rapid growth momentum in the next 20 years, and the unbalance between supply and demand in this region will remain prominent. Therefore, several measures must be adopted to ensure the stable and safe gas supply of Northeast Asia. These necessary measures include optimizing the primary energy consumption pattern and improving the energy efficiency. Accelerating nature gas development and using are the realistic choice to meet energy security, economic, environment friendly and safety requirements. "Asian premium" can be solved gradually by shale gas development and multisupplier trend. Countries need to enhance mutual trust, accelerate the construction of the regional pipeline network system, promote to develop the Asia gas trading hub and achieve a win-win results for all.

Abstract In 2014, the oil and gas industry will celebrate 65 years of hydraulic fracturing. Over the years, the number of stimulation treatments in Russia has grown. In the early 1960s, for example, 1,500 jobs were performed per year; in 2012, more than 39,500 operations were performed. This increase is the result of the demand for effective development and redevelopment of low-permeability formations and mature oil fields. Hydraulic fracturing effectiveness has become a key focus for Russian oil-producing companies over the past decade. Optimization of the fracturing fluid parameters is one of the fundamental elements of the whole reservoir stimulation process. Six main milestones in the evolution of fracturing fluids in Russia over the past 10 years can be identified: the revision of the requirements set for quality of fracturing fluids which included the introduction of the socalled "shear stress" test and stability tests for pad, middle, and last proppant stages; designing fracturing fluids for stimulation treatments using large-size proppants; optimization of fracturing fluids on the basis of Cenoman water; improvement of retained fracture conductivity by minimizing polymer loading and optimizing breaker concentration without sacrificing fracturing fluid performance, with documented cases of a 15 to 20 % polymer reduction leading to a 100 to 150 increase in productivity index; simplification of fracturing fluid designs by the introduction of a self-buffering crosslinker, which allowed to decrease a number of fracturing fluid additives by half; and development and implementation of the dry version of the borate-based crosslinker to address Russian cold weather conditions, with associated changes in logistics and the development of methods for maintaining high fluid efficiency.

Abstract "If you don't get the balance right between the companies' interest and the country's interest, the country ultimately will lose." William Ramsay The concept of this paper comes from the fact that there are multiple standards followed in various regulatory issues throughout the world. Often it is observed that various countries have various practices which lead to either loss of precious energy or the perfect utilization of it. Taking a cue from the above, this paper will try to document the various practices that major countries in energy follows. The documentation will serve as a catalog of what should be implemented and what should be avoided in context of best practice that should be followed in Energy Sector, thus serving the purpose of the paper. Narrowing down the Geo - Political Spectrum the paper will focus on governance, risks and compliance of four oil major countries namely Russia, United States of America, Saudi Arabia and Brazil. The countries selected are from a diverse set of background both economic and geo- political. Further the study will be using PESTLE (Political, Economic, Social, Technological, Legal and Economic) analysis in bringing out the various best practices that is aimed in reducing the loss of precious energy. The paper will be mostly based on secondary research and the research methodology will be majorly qualitative in nature. Finally the paper will come to close in which we will relate the same to how to develop the possible best practices in the given domain, so that all the stake holders related to an energy sector gets into a win-win situation, making the key take way of the paper.

Abstract The paper focuses on EBRD's mandate and objectives in the oil & gas sector in the context of the new Energy Strategy adopted by the Bank in December 2013. The right balance between the three pillars of energy affordability, sustainability and security relies on a market-based approach promoted by EBRD as the best optimization tool for solving the coordination and resource allocation problem in the energy sector. The paper further reviews the key themes of the Bank's engagement in the Russian oil & gas sector: from supporting private participation and market-enabling infrastructure to resource efficiency, diversification and decarbonisation of the Russian energy sector. Recent global developments in the unconventional oil & gas and possible implications for the domestic sector are reviewed from the perspective of possible financing opportunities for the sector efficiency improvements. Finally, the Bank's close engagement and support of transition to a lower carbon energy sector in Russia is presented in the context of the successful projects targeting gas flaring reduction and possibilities for a domestic emissions trading scheme. EBRD: mandate and presence in the oil & gas sector Central to EBRD's mandate is support of transition to market-oriented economies in an environmentally sound and sustainable way. In this context the oil & gas sector and its unique characteristics present both constraints and opportunities for the Bank's engagement. Support of private operators is at the heart of our mandate. Private sector participation is essential for improvements in efficiencies, strengthening markets and addressing operational challenges of the oil & gas industry. At the same time the Bank's Energy Strategy is guided by the principles of energy affordability, security and sustainability . The right balance between these three pillars relies on a market-based approach as the best optimization tool for solving the coordination and resource allocation problem of balancing security, sustainability and affordability. The Bank's operational and investment response across the EBRD region, from Vladivostok to Casablanca, is in supporting and harnessing market forces to deliver sustainable, secure and affordable energy. In Russia, similar to the Bank's other countries of operation, the market-based approach is often constrained by the shrinking universe of small and medium private clients, general consolidation trends in the oil & gas sector and increased state participation oil and gas extraction, transportation and distribution. The pervasive issues of not fully developed and liberalized energy markets, institutional inefficiencies and not cost-reflective prices coupled with unaccounted environmental costs and high carbon intensity levels pose hurdles for the sector efficiency and growth. The liberalisation of the gas sector remains challenging given the monopoly in the downstream segment, depressed domestic tariffs and constrained third-party access to the natural gas network.

Abstract Comprehensive risk management for the E&P business has to be based on three main pillars: Sophisticated, multi-lateral partnerships Rigorous portfolio prioritization / active portfolio management High technology and know-how These three aspects are crucial for minimizing investment risks, diversifying assets, using available reservoirs more efficiently, and protecting people and the environment. Comprehensive Partnerships The E&P industry is currently undergoing a period of radical upheaval. Unconventional oil and gas resources have already caused a major paradigm shift. Investment requirements are becoming larger and projects more complex. Furthermore, our environmental demands are growing. In short, ‘standard’ solutions are no longer good enough. These challenges also fundamentally affect the relationship between the NOCs and IOCs. This relationship is more important than ever. Around 85 percent of all oil and gas reserves are controlled by National Oil Companies. In the past, money opened doors for the International Oil Companies, but nowadays the NOCs have major financial resources themselves, so money is no longer the main entry ticket. Instead there is now a new entry ticket in the race for resources: technological know-how. But it doesn't end there. Cooperation is becoming more integrated and much more sophisticated. That means that NOC/IOC cooperation structures are evolving into comprehensive partnerships. One important aspect of this evolution is that cooperation is moving out of the NOCs' own backyards: NOCs are becoming international players and are increasingly aiming to access new energy sources and markets. To be efficient, NOC/IOC partnerships need solid foundations which integrate the strengths of both sides and create win-win situations. For the IOCs these partnerships can pave the way to NOC-held resources. For the NOCs, partnerships with experienced IOCs can provide access to the IOCs' technological know-how and new markets. This is how international ties and strategic partnerships are created, bringing diversification and security to both partners. Wintershall's partnerships with Gazprom from Russia and Statoil from Norway show how strategic partnerships can develop and adapt to changing circumstances.

Abstract The report provides information on the current state and prospects of oil and gas resources development in the major offshore oil and gas basins of the World, including the Arctic. Considered the most important achievements and negative results of offshore oil and gas industry in the last decade. Illustrates the main trends of the offshore oil and gas production volume in the Arctic and the World Ocean in comparison with trends of the unconventional hydrocarbons production. It is shown that Russia is the leader in terms of hydrocarbons production, both the Arctic onshore and offshore. Provides information on the geological and geophysical study density of the Arctic waters and the current state of the geophysical and drilling fleets of Russia. The analyses of the petrophysical and thermobaric conditions studies at big depths are presented. Shows a great role of abnormally high reservoir pressures (AHRP) to maintain industrial reservoirs, which significantly increases the hydrocarbon resources of the Arctic region. It is proved that Russia is the leader in the Arctic hydrocarbon reserves and resources. Advices on selecting priority projects for the development on the Arctic offshore are given. Particular attention is paid to natural and man-made problems of the offshore oil and gas resources development, including AHRP, permafrost, gas pockets and gas hydrates. It is shown that the waters of five countries in the Arctic region is not enough studied to start a large-scale oil and gas fields development. The best results of the Arctic oil and gas resources studies and developments with the preservation of its ecosystem can only be achieved through international cooperation.

Abstract The World Bank estimates that over 150 billion cubic meters (bcm) of natural gas associated with crude oil production is being flared and vented annually. This volume represents 5% of the global natural gas production and adds the equivalent of 400 million tons of carbon dioxide (CO2) in annual emissions. It is also a loss of valuable resources which, in many cases, could be used for the benefits of local communities or for export projects. Overall, the loss of revenues through global gas flaring is estimated at approximately US$ 25 billion per year at $5.00 per MMBTU. The Global Gas Flaring Reduction ("GGFR") public-private partnership was launched at the Johannesburg World Summit on Sustainable Development in August 2002 with the objective of facilitating governments and oil companies' efforts, under the World Bank's leadership, to reduce global gas flaring, improve energy efficiency, and mitigate impact on climate change. Progress to date – Satellite estimates for global gas flaring show a decline in global gas flaring volumes from 171 bcm in 2005 to 134 bcm in 2010. – Global awareness and understanding of the gas flaring and venting issues: Major flaring countries have decided to tackle the flaring issue (i.e. Russia, Nigeria, Angola) and many companies' policies do not allow flaring in new oil developments. – Development of tools to monitor and measure the flaring worldwide: Satellite imaging of gas flares worldwide in partnership with NOAA, and Improvement of metering and estimating tools and methodologies – New Regulations on Gas Flaring in several countries: "No flaring" laws in Russia, Angola, Kazakhstan, and Gabon. New laws being progressed in Indonesia, Cameroon, Nigeria. – Gas Flaring Reduction Plans on the way in several countries: Canada, Nigeria, Kazakhstan, Azerbaijan, and Uzbekistan have completed their plans or are in progress to complete them, while Russia (KM), Qatar, Gabon are starting up. – Gas Utilization Projects have been identified in a number of countries: Angola, Nigeria, Kazakhstan, Qatar, Uzbekistan, Gabon, Cameroon, and others. – GGFR and its partners are improving Carbon finance methodologies of to improve the economics of gas flare reduction projects. Public-private partnership aspects GGFR is a public-private partnership led by the World Bank. The Bank is in a unique position to approach and work with governments and companies as a trusted neutral third-party capable of facilitating the much needed collaboration among relevant public and private sector stakeholders. GGFR Partners' experiences are turned into best practices through its networks with partners. A major challenge in addressing gas flaring is that progress depends upon governments' and companies' investments in actual associated gas utilization projects.

Abstract Heavy oil and bitumen are found in many places worldwide, with the largest deposits in the world being in Canada (Alberta), Venezuela and the former Soviet Union. Other countries having such deposits include U.S.A., Russia, Cuba, Indonesia, Brazil, Trinidad and Tobago, Jordan, Madagascar, Colombia, Albania, Romania, Spain, Portugal, Nigeria and Argentina. The main methods for extraction are generally mining and in situ. Within the insitu methods are the following processes: ? Steam Assisted Gravity Drainage (SAGD) ? Cyclic Steam Stimulation (CSS) ? The Vapour Extraction Process (VAPEX) ? Toe to Heel Air Injection (THAI) ? Cold Heavy Oil Production with Sand (CHOPS) The recovered bitumen may be upgraded at the plant site or diluted and sent through pipelines for production of synthetic crude. Bitumen and Heavy Oil are deficient in hydrogen, compared to typical crude oils. Upgrading is the process that changes bitumen into synthetic crude oil. There are four main steps to the upgrading process: Thermal Conversion, Catalytic Conversion, Distillation and Hydro treating. Different companies use these processes in different ways and at different stages in the transformation of bitumen/ heavy oil into synthetic crude but the basic principles behind this transformation remain the same. The state of the art of the industry worldwide will be described in this Best Practice Keynote.

Abstract Conversion of Gas to Liquids (GTL) is slowly expanding as an alternative means to monetize gas resources while producing clean synthetic diesel oil. Syndiesel may have a more prominent role in the marketplace as it may be also produced from coal and biomass through similar processing routes. The paper will review the variety of currently constructed commercial plants, the future projects and the relevance of Syndiesel with regards to new diesel engine technologies. The different options to monetise gas In the world today, natural gas is one of the most important resources available for energy supply and for the synthesis of a number of chemicals. However, natural gas is seldom found where it is needed and need to be transported from where it is found to where it is needed. Natural gas, due to its nature, is notoriously difficult to transport and several processes have been developed to transform natural to a form that can be transported. These processes include physical transformation processes like pressurising the gas to enable transport through pipelines and refrigeration (LNG 1) that transforms the natural gas into a liquid. However, the gas can also be chemically converted into a form that is fully fungible in today's different value chains. Although there are a number of process options available to do this, the two best known technologies are methanol conversion and the Fischer- Tropsch reaction. The Fischer- Tropsch (FT) reaction produces fuels that are fully compatible with today's transport value chains. The FT process can also produce high value chemicals. The Fischer Tropsch Process The Fischer-Tropsch (FT) chemical conversion of natural gas involves the following process steps: Gas recovery The natural gas that is recovered from the ground have to be cleaned thoroughly to ensure that no sulphur or other impurities goes into the process. This thorough removal of sulphur from the gas has the added advantage that the fuels from the FT process contain ultra-low «5 ppm) levels of sulphur. In Qatar, the Oryx plant buys its gas, but Sasol also have a business unit that specialises in E&P (Exploration and Production) of natural gas, Sasol Petroleum International, making fully integrated GTL facilities possible. 1 Liquefied Natural Gas

Abstract: Due to sustainable natural gas demand growth, the world gas sector has been developing fast during the past decades. In the 1980s, the average annual gas demand in Western Europe grew within 2.0–2.5%; starting from the 1990s, it rose by 3%, and by 2010 the demand will grow by 4%. In some developing countries, natural gas demand grows impressively: over 7–8%. The share of gas in the world energy will grow from 23% in the late 20th century to 27% by 2020. The proven world gas reserves are over 170.0 TCM. Production was over 2.4 TCM in 2000. In 2020, it will be 4.5 TCM, which makes it possible to meet the ever-growing gas demand. Gas resources are distributed very unevenly over the Earth. The principal reserves belong to Russia and Middle East countries. Non-uniform reserve distribution brings about the development of trans-regional and transcontinental systems of pipelines and the increasingly intense development of LNG business, although the gas pipeline network is insufficient, globally and regionally. International gas trade shapes the world gas market. From 1970 to 1995, international gas sales grew 10-fold. The amount of gas sales will double by 2010 and triple by 2020. Besides traditional gas markets, new markets develop intensely, primarily in Asian-Pacific countries. Convenient geographical location, immense reserves of natural gas, experience in construction of gas pipelines make it possible for Russia to supply gas both to traditional partners in Europe and to new buyers in the Asian-Pacific region.LNG sector development allows Russia to enter the markets in both Americas. All that determines the role of Russia at the global gas market. Its development depends on reliable gas supply to customers, gas market liberalization, and energy security of both producer and consumer countries. INTRODUCTION As far as the world gas market is concerned, the first decades of this century will be a period of intense rise in both production and consumption of natural gas. The growth rates of these parameters will be greater for gas than for any other energy resource (its global consumption is expected to increase at 2.4% per annum as opposed to 1.6% for oil and 1.4% for coal). The greatest rates of gas consumption growth will be typical for China (5.5% per year), African countries (5%), South Asia (4.7%), and Latin America (4.3%). Consumption growth rates in the OECD countries will be less by far (Western Europe - 2.1%, the APR - 2.3%, and the USA and Canada - 1.7%). The geographical pattern of natural gas consumption would change under the impact of its faster growth in the developing countries, first and foremost in China, India, and other Asian states. Within the period of 2000-2030, the world consumption share of the OECD countries would drop from 52 to 49%, and that of the transition economy countries - from 24 to 19%, while the share of the developing countries would rise from 21 to 32%.

ABSTRACT This paper will present the findings of the natural gas industry on the current status and trends in world natural gas supply and demand, highlighting the main constraints and challenges it faces to match the balance in terms of technology, investments, transport options and regulation. Natural Gas and Alternative Technologies As Tools for a New US Gas Security Strategy For almost half a century, federal policy makers in the United States have used "oil security" as code for "energy security." The international nature of oil markets, the decades-old global oil cartel, the rise in oil imports, instability in the Middle East and the near-total dependence of the world's transportation systems on oil-based fuels, underscore the significant national security implications associated with US oil consumption. It is increasingly clear however, that this narrow definition is inadequate for the U.S. to effectively address the growing energy security challenges of the 21 st century. Global demand for all fossil fuels is rising dramatically, competition for capital to produce and deliver energy to markets is increasing, and global energy trade is rapidly expanding. These trends could alter geopolitical relationships and strategies in very significant ways, requiring a broader energy security policy focus than the oil-centric one of the last fifty years. Natural gas is the most prominent new entrant in this broader energy security arena. Its elevated status is due to several factors. First, while global energy consumption is growing rapidly, demand for natural gas is growing faster still, outstripping the pace for all other energy sources; by 2025, the world will be consuming around 70% more gas than it does today. Much of the incremental demand growth, largely for power generation, will occur in the developing world. In the U.S. and Europe, where absolute demand is the largest, incremental gas demand growth will mirror that of the developing world, although it will not be as large on a percentage basis. In the US, natural gas represents 24% of total US energy consumption; it is critical to both the economic and environmental health of the nation. Second, natural gas is a relatively abundant energy resource. The world has roughly 6000 trillion cubic feet (tcf) of proved natural gas reserves and currently consumes around 100 tcf of gas per year. While gas reserves are substantial and more widely distributed than oil, they are still concentrated in just a few key regions of the world. Moving these narrowly-distributed resources to increasingly-dispersed and growing demand centers will require expanded or new distribution networks and new technologies to reduce costs. Technically recoverable reserves are much larger and even more widely distributed than proved reserves but will also require new technologies - along with significant investment and a suite of policies to encourage their development and deployment - - to economically find, produce, process and transport them. Third - and related to the previous point - over 30% percent of the world's gas reserves are "stranded" by virtue of the transportation limitations associated with natural gas. Stranded resources can only be "monetized" by

Abstract Ever growing importance of natural gas in the world energy balance is a formed stable tendency the action of which is strengthened by energy factors and ecological and economic factors. The world gas industry develops rapidly. In the year 2000 2.347 bln m3 of gas were produced, and the proved reserves of natural gas amounted to 150.0 trln m3 as of January 1, 2001. One fourth of consumed primary energy resources is natural gas. The greatest level of consumption has been reached in North America (31%), then the CIS countries (27%) and countries of Europe (20%). In the XXI century the volumes of international trade of gas will increase, new gas transportation trunk pipelines will be developed and gas will greatly contribute into globalization of the world economy. The share of Russia is more than one third of proved gas reserves, one fourth of its world production and half of all supplies to the world market of gas. Introduction At present natural gas holds a special place in the world energy structure - it belongs to a group of most widely used energy carriers (along with oil and solid fuel significantly outstripping the atomic energy and renewable sources of energy including hydropower) and it belongs to the most perspective resources of energy simultaneously. In many cases all main vectors of criteria for choosing energy resources - maximum energetic, economic and ecological efficiency - point to natural gas. Gas industry acquires a really world scale putting away the differences in geography and thus multiplying advantages of gas. Speaking about the future of gas it is impossible to miss such an important moment as environmental protection. Being one of the most ecologically pure out of all widely spread now kinds of fuels gas is bound to be one of the central elements of our mutual struggle against harmful emissions into atmosphere, the latter resulting in sadly known "greenhouse effect". Natural Gas in the Predicting of perspective energy development, determining of rational energy supply scales, World Energy preparing of structural, organizational and technical resolutions done in good time must adequately respond to the problems facing society at that period of time. For the forthcoming 20–30 years the following problems can be mentioned: demographic growth in developing countries, the specific weight of which in population of the globe will exceed 90%; BLOCK 3 - - FORUM 19 387 NATURAL GAS IN THE XXI CENTURY global deterioration of environmental conditions (greenhouse effect, ozone holes, radioactive wastes); aggravitation of the resource problem;increase of energy usage efficiency and appearance of new energy resources. So, the task of creating energy with stable development must take into consideration all these different tendencies and must meet the requirements of energetic, economic and ecological effi

Abstract Climate research assumes that the world climate is changing. The question to what extent such change is due to human activity is still at issue. However, scientists agree that increasing concentrations of climate forcing trace gases in the atmosphere make a contribution to climate change which is not negligible. Besides CO2, CH4 is one of the most important climate forcing gases. Anthropogenic emissions have increased significantly due to a growing world population. The share attributable to fossil fuels is on the order of approx. 17 % of total annual CH4 emissions. The shares of gas industry emissions vary depending on country. Total CH4 emissions caused by the gas industry worldwide were roughly 20,000 kt in 1995. This amount neither includes the CH4 emissions connected with the production of crude oil nor those connected with associated gas which occurs during oil production and is not fed into a gas grid. Related to the world's natural gas production of approx. 79,000 PJ (net calorific value) and assuming, as a worst case scenario, that natural gas is purely CH4, the leakage rate is 1.3 %. The global estimate includes measurements and up-to-date information which confirm that the CH4 emissions in Russia are considerably lower than assumed so far. The CH4 emissions of the Russian gas industry were estimated to approx. 4,200 kt in 1995, corresponding to a leakage rate on the order of 1 % referred to net natural gas production in Russia. The gas industry endeavours to further improve the already good emission situation by application of the best available technologies throughout the gas chain, from production down to the end user. Overview/Target The main component of natural gas is methane (CH4) and both the natural gas industry and environmentalists in general have an interest in quantifying losses of natural gas. When quantified, the importance of CH4 emissions related to natural gas must be compared with other anthropogenic CH4 sources and, if necessary, reduction measures can be defined. The target of this presentation is to put CH4 emissions in the gas industry into perspective with respect to their climate effect and present possibilities for CH4 leakage reduction in the gas industry. A prognosis made by the Fraunhofer Institute for the German gas industry is included as an example of the existing potential for CH4 leakage reduction. Status Quo of With industrialisation, the concentrations of climate forcing gases have significantly increased due to Scientific Climate Discussion human activities. Around 1750, before industrialisation started, the concentration of carbon dioxide Global Warming (CO2), for example, which is the most important greenhouse gas, had been at a level of 280 + 10 Potential of Methane ppm for several thousand years. The CO2 concentratio

Esteemed Colleagues, Ladies and gentlemen, raw materials source, high production costs, payment crisis, acute 'shortage of investment. Improvement of Oil industry in Russia represents in the .the state taxation and .price policy is an important aggregate the enterprises of exploration, production. "element of the oil industry development strategy It Refining, transportation and sale of oil and petroleum requires the change of direction from fiscal. and products. Almost all enterprises of the. industry are economic concept to investment oriented one in comprised. Corporal structure of the industry includes interrelations of the state and industry. at present. 11 vertically. integrated oil companies that produce 88 % of oil in the country and 113 small and A major, industry problem is 'deterioration medium non integrated companies whose production both', quantitative and qualitative of the state of raw share amounts to 9 %. OJSC "Gazprom" produces 3 %. materials source, Major oil and gas provinces. are in The oil companies, include 28. refineries, 6 lubricant the late stages of development: 'with decreasing production plants and 2 shale processing plants. Trunk production. Exploration amounts have fallen as well as oil pipelines length is almost 47 thousand km and that its financing, its effectiveness 'having decreased: of petroleum products totals 20 thousand km. Oil and mostly small and medium fields discovered are located petroleum products transportation is attributed by far from the existing production infrastructure. Thus, Russia's legislation to the sphere of natural since mid nineties oil 'reserves increment has not monopolies. 'compensated. current output, the share of reserves' that are hard to extract keeps on growing, non Oil industry along with gas industry is the operating well stock has considerably increased. basis of the country's energy supply and major source of tax (about 40% of the federal budget. income) and. In order to upkeep output with explored hard currency (40%) state revenues. At present oil reserves on economically well-founded level, it is production has stabilized after having experienced a necessary to improve the legislation in force in the" slump of the decade at a level a bit over 300 million field of subsoil deposits exploitation. To do this, it is tonnes annua11y. Due to the measures taken by the required, firstly, to create incentives to effectively' government to reorganise the oil sector, positive trends carry out exploration at the expense of the owner of in the industry development have taken shape in the deposits own funds, secondly, to achieve maximum last and beginning of this year. freed

Abstract. Potential resources of the Russian continental shelf amount to not less than 100 billion t (including 15.6 billion t of oil). The Barents-Kara oil and gas bearing superprovince, the oil region near Sakhalin, about 30 fields have been discovered there. The production has not been started yet, but 6 regions have been prepared and by 2010 it will be possible to produce not less than 50-60 mln t of oil and about 100 billion m3 of gas. to shot 5 mln. running km of 2D seismic lines to Introduction get the average density of the shelf seismic coverage Though the current level of onshore equal to 1km / km2. hydrocarbon reserves and resources is rather high (in the West-Siberian province first of all), the Principal discoveries resources of the Russia onshore part only can not Nevertheless, even the works that have been supply the long-range demand for hydrocarbons in already fulfilled have high geological and economic the XXI century at the present production activity effectiveness. General geological structure has been (up to 300 mln. t. of oil and 600 bln. m3 of gas per studied, hydrocarbon-geological zonation has been year). By 2010, not less than 3-4 bln. t of oil and 6- fulfilled, and the main prospective areas have been 7 trl. m3 of gas will be additionally extracted, and distinguished. Marine continuations of the West- by 2020 8-10 bln. t and 12-15 trl. m3 Siberian, Timan-Pechora, Terek-Caspian correspondingly. New virgin reserves, new oil and hydrocarbonbearing provinces have been traced. gas provinces should be prepared for production The Barents Kara, Laptev, East-Arctic, under these circumstances. Okhotomorsky and other subaqual proper oil-and- gas-bearing or possible oil-and-gas-bearing Geological and geophysical studies of the provinces have been marked out on the base of Russian shelf geological prospecting on the shelf and coastal Considering prospects of the first-rate Russian Russian territories. Five large oil-and-gas-bearing regions, one can clearly see that the undeveloped regions have been preliminary explored the continental shelf is one of the principal reserves. No North-East Sakhalinsky, Pechoromorsky, East one tone of oil and cubic meter of gas had been Barents, South Kara, and Obsky-Tazovsky ones as produced there until recently. well as the Kaliningradsky relatively small region. In the total area of the Russian marine 430 promising local objects have been revealed on periphery (6.2 mln. km2), the hydrocarbon- the shelf, 61 structures have been drilled, and 32 oil promising shelf area constitutes about 4 mln. km2 and gas fields have been discovered, including 3 including: 2 mln km2 in the West Arctic (the

Abstract: Current research, exploration and engineering work carried out by Russian companies is ever more focused on non-traditional sources of hydrocarbon raw materials. Primarily, these include the following: · oil in clay reservoirs; · methane in coal formations; · gas in compact reservoirs; · gas at greater depths (deep gas); · gas-hydrate pools. The distribution of the reservoir is Oil in Clay Reservoirs utterly non-uniform. While oil seepage has In recent years, there has been a been observed over a broad geographical area, growing interest in Russia to oil pools commercial presence of oil can be marked over associated with clay, carbonate-clay and some local sites only. The principal zone of oil carbonate-siliceous-clay reservoirs. accumulation, containing over 90% of As of today, the Russian State commercial hydrocarbon reserves of the Balance includes 42 fields of oil contained in Bazhenovsky suite, is assigned to the Mansi such reservoirs; these are of diverse syneclise, to the slopes of the neighboring stratigraphic ages, and their overall initial arches and to local elevations involved in the recoverable oil reserves are around 600 million syneclise. tons). That is why, because of the significant As an oil-bearing item, the geological reserves of hydrocarbons in them, Bazhenovsky suite has been identified as their efficient development is becoming an formation Yu0. By January 1, 1999, 37 oil urgent issue in the progress of the mineral raw pools have been discovered there. The number materials base of the country. of productive wells with commercial inflows Among non-traditional targets of oil rating over 5 tons per day is less than 5%. The and gas exploration, a special place belongs to flow rates vary in a broad range. Some of the oil pools in clay complexes of the wells at the Salymsky field produced up to 600 Bazhenovsky and Khadumsky suites in West tons per day (1968, well #12). The overall Siberia and the Caucasian piedmont and in initial oil reserves can be estimated to be domanik formations of the Urals- -Volga approximately 200 million tons. region. The reserves and resources of oil are The whole zone where the great there. For instance, the share of category Bazhenovsky suite is distributed in West C2 reserves in clay reservoirs of the North- Siberia can be regarded as a promising area, Caucasian oil and gas-bearing province and the potential for preparation of commercial reaches 20% of its overall reserves, while the category reserves in terms of quantity is unexplored reserves in bazhenites of West commensurable to the reserves of the fields Siberia are over 15% of the entire explored that

Abstract. In the paper the advantages and disadvantages of two energy carriers: coal and natural gas were compared and the, coal-natural gas" model was indicated as most adequate in the Middle European countries conditions. The governmental activities should concentrate on the following issues: technological and economic-financial optimisation of energy model diversification of directions of energy carriers import. necessity to obey international relations with respect to the global environmental policy. possibility of long-term contracts with energy-exporter countries, taking into account their social and political situation. Attention should be paid to the possible participation in foreign investments giving an access to energy sources. exploitation requirements, especially saving own energy resources and creation of strategic reserves. possibility of linking own power systems to the regional structures, e.g. EC systems. It should be born in mind that, energy weapon" exists and once used deliberately and forcefully can bring about serious economic and political conditionings of the Middle European countries. They are in a special situation where the energy model should be re-oriented to the pro-ecological one. INTRODUCTION 366 x 109 m3 of gas, import 30% of natural gas Geographically, the area of Central Europe supplies from various extra-territorial sources, differs slightly from the area covered by those including about 19% of Russian gas. The role of the countries known as 'the Central-European Russian gas imports is likely to grow, due to the fact countries'. By "Central Europe" we understand the that the Russian (West Siberian) gas resources are countries which made up the socialist block before estimated to be about 40,000 x 109 m3 and 1989 and which in the last decade have changed constitute about 40% of world's gas resources, their political orientation to become fully which can be found in Russia and the Community of independent and democratic. Among the constituent Independent Countries (i.e. Azerbaijan, Kazakhstan, countries we have: the Czech Republic, Poland, Turkoman, the Uzbek Republics and others). The Hungary, Slovakia, Romania, Bulgaria, Croatia and gas pipelines to transmit the gas must pass through Slovenia. In view of natural gas management one the territories of the Central European countries common feature can be found: they all import (Poland, the Czech Republic, Slovakia, Hungary, Russian natural gas (over 50% of the total demand). Romania) which puts this area in a specific position: Romania is an exception here, however, as from the the importers of natural gas from Russia (as is the year 2010 it will also have to start to import 50% case now) and a transit route f

Abstract. At present, natural gas holds a special position in the world structure of energy production: it belongs to a group of the most broadly employed energy carriers (along with oil and solid fuel, leaving both nuclear power production and renewable energy sources far behind), and is, at the same time, one of the most environmentally clean energy resources. It features the greatest energy, economic and environmental efficiency. The environment has a limited ability to withstand the polluting effect of human activities, and it sets serious restraints on the use of fossil fuels. Because of the ever growing environmental problems, early next century it can be expected that the role of natural gas as a highly efficient and environmentally clean energy carrier will continue to rise, and there is no doubt that the tendency will carry further on into the future. That is considerably supported by the responsibilities of the member countries of the UN Framework Convention on climatic changes set by the 1997 Kyoto act, according to which the emission of carbon dioxide and other greenhouse gases shall be reduced. To build up the capacity of underground gas THE FOUNDATION OF NEW PROJECTS storage is also a principal target. The new projects are founded on the unique raw The strategy of developing gas industry includes materials base, developed infrastructure, strong both meeting the requirements of the Russian production and research base, and high economy and advancing the export of gas while technologies of gas industry in Russia. maintaining reliability and stability of natural gas As of January 1, 1999, the explored reserves of gas supply. By 2010, production of gas in Russia will in Russia amounted to 46.9 TCM and potential reach 670.0 BCM, and the share of natural gas in reserves to 236.1 TCM (Fig. 1). The greatest share the balance of primary energy resources will of commercial reserves is onshore (over 90%), amount to 55-57%. while almost half of unexplored reserves (42%) belongs to shelf areas. New Projects Associated with the Development OAO Gazprom has licenses for the development of of the European and Turkish Gas Markets over 100 gas and gas-condensate fields whose overall explored gas reserves equal 33.4 TCM, As of now, OAO Gazprom exports gas to 19 which is 67% of Russian and 23% of world natural countries of West and Central Europe. In 1999, the gas reserves. Russian gas export amounted to 126.8 BCM (Fig. 2). The share of Russian gas in the overall gas Production of gas, its transportation to the internal consumption is 20% in West Europe and over 60% gas market and export to the European countries are in Central Europe. supported by the Unified S