Pipelines and Energy Security Institutions Theresa Sabonis-Helf Image from DOE website: SPR Pipelines

Russian Nord Stream Natural Gas Pipeline Facts Route: Portovaya Bay, Russia to coast Germany (underwater) – Baltic Sea Capacity: 27.5 billion cubic meters (2010); 55 bcm (2012 – 2nd pipeline) Length: 1,200 km (World’s largest underwater natural gas pipeline – max depth: 210 meters) Cost Estimate: 5 Billion Euros (60% Increase – 8 Billion Euros) – Cost 2.2 Billion Euros if built on land Supply: Shtokman gas field (estimated reserves of 3.7 trillion cubic meters – 2010 available) Shareholders: Gazprom (51%), BASF (24.5%), E.ON (24.5%) Contracts: Wingas – German Gas Co. – 9 bcm for 25 yrs DONG – Danish Co. – 1 bcm for 20 yrs E.ON – German Co. – 4 bcm Gaz de France – 2.5 bcm Slide courtesy of Nelson Dodd, NWC Elective 5404

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Existing Soviet Oil Pipelines “Chechen Loop” Baku-Tbilisi-Ceyhan (BTC) Pipeline 1,000,000 B/Day Caspian Pipeline Consortium (CPC) 1,500,000 B/Day Iran “Swap” 80,000 B/Day Trans-Afghan Gas Pipeline (Proposed) Baku-Supsa Oil Pipeline 200,000 B/day Kazakhstan-China Pipeline 200,000 B/Day

Russian Oil and Gas Pipelines to Europe: Actual & Proposed Map from US Dept of Energy EIA 2008

European Reliance on Russian Natural Gas ( ) RankCountry (bcf in 2007) 2006 % of Dom. Cons. 1Germany (1,378 bcf) 36% 2Turkey (827 bcf)64% 3Italy (742 bcf)25% 4France (346 bcf)20% 5Czech Rep (247)79% 6Poland (247 bcf)47% 7Hungary (226 bcf)54% 8Slovakia (223 bcf)100% Data from EIA Russia Country Report 2008

Russian Gas Sales Prices 2008 ($ per thousand cubic meters) European Market price $ Lithuania (~78% of supply) $ Latvia (~ 78% of supply) $ Estonia (~78% of supply) $ Georgia (100% of supply) $ Moldova$ Ukraine (66% of supply) $ Belarus (Q1) (98% of supply) $ Armenia$ Data from EIA Russia Country Report May 2008

Major gas trade movements Major trade movements Trade flows worldwide (billion cubic metres)

Natural Gas Proven Reserves 2008 (Trillion Cubic Feet) Country Reserves (Tcf) Russia Iran Qatar899.3 Turkmenistan280.6 Saudi Arabia267.3 United States237.7 UAE227.1 Country Reserves (Tcf) Nigeria184.2 Venezuela170.9 Algeria159.1 Indonesia112.5 Iraq111.9 Norway102.7 Australia88.6

Map from Heritage Foundation website

Map from EIA Country Report: Iran 2009

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LNG Exports: A Changing Market YearNumber of Exporters Total Volume 19938Less than 3 Tcf 19979Less than 4 Tcf Tcf Tcf New Exporters since 1998: Azerbaijan, Egypt, Equatorial Guinea, Nigeria, Norway, Oman, Trinidad & Tobago

IEA Member Countries Australia Austria Belgium Canada Czech Republic Denmark European Commission Finland France Germany Greece Hungary Ireland Italy Japan Republic of Korea Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States

The IEA and Energy Security Members Agree: That there is no sustainable development without secure energy supply That diversification of supply and distribution (by source and type) will be pursued That transparency in world energy markets and effective responses to supply disruptions are critical To foster dialogue and data between energy producers and consumers 1970s-19809s: Reducing the level of imports/ managing risks associated with imports Contemporary: Includes risks such as accidents, terrorism, underinvestment, poorly designed markets Short term responses: coordinated use of energy stocks, temporary blackouts, redirected supply flows (ERMs triggered at 7%; CERMs at any level) Medium and long term: increase energy efficiency, diversify fuels and sources, ensure adequate reserves margins

Where does the SPR fit in? The United States SPR is the largest supply of emergency crude oil in the world. (It currently has the capacity to hold 727 million barrels). Congress approved a decision to expand capacity to 1 billion barrels. Decisions to withdraw oil are made by the President under the Energy Policy and Conservation act. There have been two emergency draw-downs of the SPR: during Operation Desert Storm and after Hurricane Katrina. IEA Member countries hold approximately 1.4 billion govt. controlled barrels of oil Data from the US Department of Energy website