Gazprom feels the chill as its dominance is weakened

[xchrom]

http://www.guardian.co.uk/environment/2012/nov/15/gazprom-chill-shale-gas-revolution


A vast northern energy project frozen, billions of dollars in lost profit, legal disputes and investigations – the creeping shale gas revolution has left Gazprom, Russia's state gas monopoly, reeling.

Long used to being the big boy on the block, Gazprom has been confronted with a future where it may no longer be able to dictate long-term pricing contracts, shut supply valves on a whim and hold much of Europe in its grip because of its position as dominant player.

For years, officials at Gazprom refused to discuss shale gas at length. Alexander Medvedev, deputy head of the monopoly, once famously called it a "bubble". Alexey Miller, its CEO, said the alternative energy source would remain something of a luxurious side dish. "If you like foie gras, that doesn't mean you no longer need a regular steak," he told a gathering of European businessmen in Cannes in 2010.

Now, with the US poised to overtake both Saudi Arabia and Russia to become the world's largest oil producer by 2035 because of shale, it looks like Russian officials may be grudgingly accepting the new reality.

[AverageJoe90]

1. Good news, I think.

We oughta send a message to Western oil companies, too.