Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to the Oil and Gas Information Agency (Tyumen Region) on Russia's competitive advantages and challenges in international energy trade and the current and future development of global energy markets.
He notes that there is no third player of this scale on the market in terms of oil (the United States has become a net exporter of liquid hydrocarbons since 2020, but remains a net importer of crude oil)."The competitive advantage of the Russian fuel and energy complex is a combination of a huge resource and production base, still relatively low production costs and flexible supplies," he said. – Russia is showing amazing agility and adaptability. In addition, Soviet oil and gas exports, and after the collapse of the USSR, Russia, Kazakhstan and Azerbaijan, respectively, are a natural counterweight insuring the world market from instability of Middle Eastern supplies."
The crisis in the Persian Gulf increases the long-term interest in Russian supplies from a wide range of importers, including those who previously preferred other sellers. South Korea, Vietnam, Sri Lanka, Thailand, Indonesia, Bangladesh, and some African countries have expressed interest. Previously, these countries depended on supplies from the Middle East.
"Long-term contracts are still significant, but this is far from being as reliable and unambiguous a protection mechanism for a supplier as it seemed before. Spot sales are no less important and most often they allow us to adapt to the sanctions pressure and the volatile price environment," Alexey Belogoryev said.
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