Russia's Gas Sector: In Need of Liberalization in the Context of the Shale Gas Revolution and Energy Relations with the European Union

Abstract

Rising gas production from nonconventional deposits in North America and the possibility of growth in the rest of the world pose a serious challenge to Russian energy interests. Although Russia has the largest proven gas reserves and is the number one exporter of fossil fuels, its position as a dominant gas supplier to the European Union (EU) is diminishing. This article examines the main problems of Russia's gas sector in the context of the shale gas revolution and the liberalization of the EU gas market. The article also analyses the perspectives of Russia's energy relations with EU countries and formulates some recommendations for them.

KEYWORDS:

• energy policy
• EU
• Gazprom
• natural gas
• Russia
• shale gas

Notes

Source: IEA 2010; EC 2009.

Source: BP 2011; EIA 2011.