Oil in the Russian Economy By: Eugene Hohlov

Plan History Of Russian Oil Exportation of Russian Oil Today Future of Russian Oil

Plan History Of Russian Oil Exportation of Russian Oil Today Future of Russian Oil

History of Russian Oil Russian Empire, Czar ruled, pumped oil from Azerbaijan

Nationalization (Revolution) Lenin Natural resources (Gas + Oil) belong to the government after 1917 History of Russian Oil

WWII – “Enemy at The Gates” Stalingrad gif

History of Russian Oil Oil Found: * West Siberia * Komi * Volga / Ural

History of Russian Oil Early Nineties ( ) Collapse of Soviet Union Caspian Sea Oilrigs become part of Azerbaijan Privatization of Oil Industry Creation of new independent companies Yukos Sibneft TNK

History of Russian Oil Oligarchs friends of ex-president Berezovsky (ex-richest person in Russia) owned Sibneft oil Outstanding warrant on his arrest, assets confiscated Currently lives in London Khodorkovsky Worth = $8 billion (the richest man in Russia) owns Yukos oil Currently lives in jail awaiting trial, assets frozen Abramovich (future richest person in Russia) owns Sibneft oil Worth = $5.7 billion Lives in London, selling off his assets. Future target for arrest

History of Russian Oil 1 st Civil War for oil Chechnya 45% of Russian oil

History of Russian Oil Czar Revolution WWII After WWII Early Nineties Chechnya

The Game Plan History Of Russian Oil Exportation of Russian Oil Today Future of Russian Oil

Russian Oil Today Number 1 Producer of oil in the world ( ) Russia is pumping 8.3 mm bpd OPEC Number 2 Exporter of oil in the world Russia is exporting 5.4 mm bpd More than 25% Of Russia’s Revenue is from Oil Exportation

Russian Oil Today Capital Old equipment Starting to improve Schlumberger Baker Hughes Halliburton

Russian Oil Today

Russian Oil Today Foreign investors Improving efficiency of oil extraction To reduce dependency on Middle East China Japan Europe United States

Russian Oil Today International Companies Invest in Russian Oil ExxonMobil (largest company) Reserves of more than 21 billion barrels of oil ? Looking to buy YukosSibneft (9.8 bn barrels) ? ? YukosSibneft (4 th largest company) ? Maraphon Invested in one of Ural oil companies ChevronTexaco ? Looking to buy a share in YukosSibneft ? BP invests 1/8 th of all capital into Russia Bought 50% of TNK Forming TNK-BP

Yukon-Sibneft On November 28, 2003 YukosSibneft merger called off. Yukos Stock in freefall Government interference

Russian Government Increased Taxation Nationalization of Oil Fields? War against Oligarchs ~icon/pictures/

Plan History Of Russian Oil Exportation of Russian Oil Today Future of Russian Oil

Future of Russian Oil The latest events lead to ? Government controlled oil fields? Oligarchs stay in power?

Future of Russian Oil Chechnya 1 st & 2 nd Civil War 45% of oil produced was produced in Chechnya

Future of Russian Oil World problems with Middle East Increases Russia’s exports of oil OPEC has no control on extraction and exportation of Russia oil Russia promises to join and follow? Government ? Oligarchs ? kulfold/irakmiert

Future of Russian Oil Doubling of Taxation on export of oil Government making 25% of its revenue More expensive to export Effect of drop in price on oil Exportation Extraction Investment temagami.carleton.ca/jmc/ cnews/ /taxes.jpg

Future of Russian Oil Long Term Goals: Build Refineries Produce inside Kerosene Mazut Aircraft fuel Gasoline

Future of Russian Oil What is Better? Government Oligarchs

Questions?