The interesting thing is that natural gas used to just be a waste product until it became economical to recover it and use it for energy generation in its own right. We have met the enemy, and he is us — Pogo
Flaring it is just the safest way to do it. In the long run, we're all dead. John Maynard Keynes
So, until recently it wasn't just a matter of capturing it but of using it after capture. We have met the enemy, and he is us — Pogo
Oil infrastructure is generally simpler, and the contractual structure for oil a lot simpler than for gas. Plus, for a long time, there simply was no market for gas in many parts of the world. This is slowly changing. In the long run, we're all dead. John Maynard Keynes
It is good that the domestic price of natural gas will rise. It appears from the article though that it's been a lack of coordination of supply and demand that has lead to 20% of Russian natural gas production being flared off. The author states that holding down the price for domestic consumption made it uneconomical to either process or transport the gas from its production site. Also, apparently there are accounting issues since the oil companies do not consider gas production costs as part of their already existing costs of production.
I wonder about the concluding paragraphs where the author states that the government has the authority to strip companies of their licenses if they fail to fully utilize the natural resources to which they have been granted access. How likely a possibility do you consider that to be in reality?
Finally, I'd be interested in having your opinion on the following quote from a different article:
The Russian government has repeatedly pledged to reduce natural gas consumption in power generation and increase coal use, in order to maximize gas exports. Earlier this year, Russian President Vladimir Putin also suggested that coal be given a greater role. But this goal would require large-scale construction of coal-fired power generation facilities, totaling some 40 gigawatts by 2020.
Doesn't such a policy sacrifice the health of Russian citizens, given how polluting coal is, (or are there plans to install modern pollution control equipment as well?), and the health of the planet, due to increased CO2 output from replacing natural gas with coal, to the short term financial interests of the Russian state? "My True Religion Is Kindness" -- The Dalai Lama
