For Immediate Release
Office of the Press Secretary
May 24, 2002
Fact Sheet: Energy Relations
United States-Russia Commercial Energy Relations
Energy (mostly oil and natural gas) accounts for 40 percent of Russia's
exports and 13 percent of its GDP. After Saudi Arabia, Russia is the
second-largest producer and exporter of oil in the world. In 2001,
Russia produced about 7 million barrels of oil per day, and exported
about 5 million barrels per day.
Total foreign direct investment in Russia's oil and gas sector to
date is $4 billion. Currently, there are seven U.S.-partnered joint
ventures producing oil in Russia, with the largest producing about
50,000 barrels of oil per day. Looking ahead, major new foreign
investment will be needed for Russia to maintain or increase oil
production levels.
Russia's existing pipeline system limits the growth of Russia's oil
and gas exports. There are plans to build new pipelines and to
increase the capacity of existing ones, including the Baltic Pipeline
System, a pipeline from Siberia to China, and a pipeline from Sakhalin
to Japan. There are also Russian companies looking into the
possibility of exporting oil through the Baku-Tblisi-Ceyhan pipeline.
Sakhalin I and the Caspian Pipeline Consortium's
Tengiz-Novorossiisk pipeline are premiere examples of U.S.-Russia joint
investment projects.
The Sakhalin I project operates under a Production Sharing
Agreement (PSA), and includes an American partner (ExxonMobil). The
consortium is performing exploration activities and expects to start
exporting gas in 2005. The legislative framework for Production
Sharing Agreements has not yet been completed. Four other major
projects under consideration by American companies are awaiting this
PSA framework before moving forward.
The Caspian Pipeline Consortium's Tengiz-Novorossiisk oil pipeline
is the largest, single foreign investment in Russia, and has a capacity
of over 500,000 barrels of oil per day. The U.S. partners include
ChevronTexaco and ExxonMobil.
Russia is the fifth-largest export market for U.S.-made oil and gas
field equipment. Last year, American companies exported $282 million
of oil and gas field equipment to Russia.
To promote opportunities for greater commercial energy cooperation,
the United States Secretaries of Commerce and Energy are planning to
host a U.S.-Russia Commercial Energy Summit with the Russian Ministry
of Economic Development and Trade and Ministry of Energy later this
year in Houston, Texas.
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