Arild Moe

BP in Azerbaijan: a test case of the potential and limits of the CSR agenda?

Abstract Azerbaijan displays some of the features of the phenomenon known as the ‘resource curse’: high revenues from extractive industries coupled with high levels of corruption, a weak system of tax collection, lack of development of other sectors of the economy apart from oil, and increasing social inequality. As the leading foreign investor in Azerbaijan and a company with a salient image on corporate social responsibility (csr), the question is what bp does to address this situation on its own behalf and that of its consortium partners. The article shows that Azerbaijan has taken a lead among ‘new’ petroleum states in promoting oil revenue transparency in recent years, not least as result of the prominent position of bp in the country, but that lack of transparency on the governments spending of oil revenues remains a major barrier to reliable oversight. As for community investments and regional development, bp operates programmes on behalf of its consortium partners that could provide models for extractive industries around the world. The article argues that, while bp has acted to establish collective goods in the csr realm for all foreign oil companies, it risks having all corporate efforts to promote social and economic development undermined by the host governments macroeconomic policies and lack of commitment to developing democratic and accountable political institutions.

Space and timing: why was the Barents Sea delimitation dispute resolved in 2010?

Abstract An explanation of the timing of the 2010 agreement resolving the marine delimitation dispute between Norway and Russia in the Barents Sea must be sought mainly on the Russian side. Russias willingness to compromise on the spatial disagreement between the two countries at this specific juncture was not,as sometimes assumed, driven by a thirst for the energy resources in the formerly disputed area, but instead by broader Russian foreign policy considerations. These include a general effort to reduce the risk of conflicts with neighboring states by clearing away as many territorial disputes as possible, the intention to improve Russias image as a rule-abiding player on the international arena, and interest in strengthening the UN Convention on the Law of the Sea as the framework for Arctic governance.

Russia's Oil Industry: Risk Aversion in a Risk-Prone Environment

A Russian economist and a Norwegian political scientist, both long-term observers of the Russian energy industries, discuss the outlook for the Russian oil industry. The focus is on the relationship between reserves and industry strategies, and is presented from the perspective of an oil-producing enterprise. The authors analyze trends in reserve exploration and development and compare them with oil-industry investment patterns. They discuss differences and similarities among companies, as well as implications for future output. Also examined in the paper are factors inhibiting long-term private investment in the oil industry (including factors specific to particular companies) as well as the relevant policies of the government. Journal of Economic Literature, Classification Numbers: D21, H25, L71, Q48. 8 figures, 1 table, 40 references.

Oil Exploration in Russia: Prospects for Reforming a Crucial Sector

Two seasoned observers of the Russian oil industry analyze the countrys policy response to developments in its mineral resources base (often perceived as an exploration crisis), with a focus on oil. The authors review and discuss trends in exploration (including its organization and efficiency), recent developments in its financing, and the reorganization of exploration activity. The evolution of Russias licensing system is presented, drawing attention to changes that have affected incentives, risks, and barriers to potential resource users, both Russian and foreign. Also identified are conflicts between the objectives of resource managers and broader political goals and interests. Journal of Economic Literature, Classification Numbers: L710, Q310, Q380, Q410. 4 figures, 40 references.

Offshore Mineral Development in the Russian Barents Sea

Two Norwegian researchers examine the forces alternatively driving and hindering offshore hydrocarbon development in the Russian sector of the Barents Sea. The paper describes exploration activities beginning during the Soviet period and extending to the present, the status of the major development projects financed in part with foreign capital, and conflicting regional and central government interests involved in such development. Coverage includes the emergence of Rosshelf, an oil/gas conglomerate formed to facilitate defense conversion activities of major naval shipyards. Critical to analysis of the projects potential is assessment of alternative gas supplies and energy development strategies. Journal of Economic Literature, Classification Numbers: O13, Q40, R10. 3 figures, 1 table, 63 references.

Gazprom’s LNG offensive: a demonstration of monopoly strength or impetus for Russian gas sector reform?

Abstract Gazprom enjoys a dominant and privileged position in the Russian energy sector, and indeed in the economy as a whole. This article analyses the company’s failure to achieve the Russian state’s objectives for the country to become a force in the global LNG (liquefied natural gas) market. Has it weakened the company’s standing relative to other industry players and the authorities, with the possibility that they could unleash broader reforms in the Russian gas sector? Short-term political and economic considerations may slow progress towards a radical outcome, with Gazprom’s importance as a domestic and foreign policy tool providing some protection at a time of uncertainty for the Kremlin, but in the longer term it may well be the case that the liberalisation of LNG exports in December 2013 comes to be seen as the first step in a much broader reorganisation of the Russian gas sector.

Joint Implementation in Ukraine: national benefits and implications for further climate pacts

Ukraine has successfully established a domestic institutional system for approving Joint Implementation (JI) projects under the Kyoto Protocol, and has shown that the system is functional by issuing approval letters. Several JI projects are being implemented in Ukraine. Project developers widely regard Ukraine as the best host country for JI projects, although the project approval system is slow and bureaucratic. Barriers were identified by this study, but the drivers of JI in Ukraine are stronger, and Ukraine has emerged as a highly competitive JI host. JI is likely to provide some support to Ukrainian participation in the future international climate regime, especially as the government is calling for the continuation of JI or other similar mechanisms to be used as a tool to finance emission reductions. This article argues that the major contribution of JI in Ukraine relates to capacity building, and the readiness of the country to participate in international climate policies in the future, rather than the financial and social benefits of JI.

Russian Climate Policies: More Than Hot Air?

The purpose of this article is to review and explain Russias positions in the climate negotiations and point to future challenges for Russia in the climate regime. Russia appears to become a large beneficiary of the trading system created by the Kyoto Protocol. The current allocation of quotas under the protocol will probably create substantial revenues for Russia, and it could also help attract foreign investment to its poorly maintained power and industrial sectors. Russias positions in the international negotiations have changed as these potential benefits for the country have become apparent. However, although the Kyoto regime, if it enters into force, will mean new and additional revenues for Russia, there are several factors that might prevent Russia from reaping the full benefits created by the Kyoto Protocol.

PROSPECTS FOR SOVIET GAS EXPORTS: OPPORTUNITIES AND CONSTRAINTS

This paper assesses the prospects for Soviet gas exports to Western Europe, analyzing both supply (domestic) factors, such as gas production, consumption, and transportation, and demand (foreign) factors such as gas demand and market share. This is done using a network allocation model of the Soviet gas pipeline network (for 1985, 1990, and 1995) and a country-by-country analysis of the gas market in Western Europe. In general, the outlook for increased gas exports to Western Europe, at least to the turn of the century, is rather bleak. This is mainly due to a relatively slower rate of growth of gas demand in Western Europe than projected earlier, coupled with overcontracting of gas supplies, because the USSR has enormous gas reserves, ample production, and no major pipeline bottlenecks restricting export volumes. Its huge pipeline construction program allows both domestic consumption and exports to be comfortably accommodated

West Siberian oil and the Northern Sea route: Current situation and future potential 1

Abstract A survey paper explores interrelationships between the development of oil and gas condensate deposits in northern areas of West Siberia and adjacent Krasnoyarsk Kray and the volume and character of traffic along the Northern Sea Route. Initial sections examine the magnitude of petroleum resources in the region, the allocation of development rights, and past and potential future production. Coverage then focuses on the problems involved in transporting the oil and gas condensate to markets, with special attention to different variants for the involvement of the Northern Sea Route in the transport of hydrocarbon output from existing and prospective fields in the Northern Ob‐Yenisey Region.