New Energy for Reintegration: Oil Exports Are Fueling Russia's Ties to East Asia

By Chang, I-wei J. | The World and I, October 2004 | Go to article overview

New Energy for Reintegration: Oil Exports Are Fueling Russia's Ties to East Asia


Chang, I-wei J., The World and I


I-wei J. Chang is a writer for The Washington Times.

Russia's energy exports to East Asia may drive the Eurasian country's reintegration with the region and enhance the security and stability of an area marked by long-standing rivalries and growing energy demands, observers said at a recent conference in Washington.

"Energy will drive Russia's role of influence and integration in northeast Asia" after Russia disengaged from the region for more than a decade after the Soviet Union's demise, said John Fetter, president of FSI Energy, a Pennsylvania-based organization specializing in energy and environmental projects. Fetter made his remarks at a July 22-23 conference on Russia-Asia relations at the Woodrow Wilson International Center for Scholars.

In possession of the world's largest natural-gas reserves and eighth- largest oil reserves amid substantially growing Asian energy demand, Russia could use its energy trade to improve bilateral relations with Asian countries, some scholars say. The building of pipelines crossing through Siberia and Sakhalin Island to China, Japan, and the Korean peninsula would bring the region closer together, they say.

The industrialized societies of Japan, South Korea, and Taiwan lack natural energy resources and heavily depend on foreign oil imports. China, largely self-sufficient in providing for its energy needs until 1993, when it became a net oil importer, replaced Japan last year as the second-largest petroleum consumer, trailing only the United States.

China's demand for oil will continue to surge as the country puts millions of new cars on the road, said James Dorian, a Washington-based international energy economist. Dorian noted that passenger car sales increased 75 percent in 2003.

Asian oil demand is predicted to outpace that of Western industrialized nations two- to threefold, according to the Energy Information Agency (EIA) of the U.S. Department of Energy.

Most Asian oil imports come from the Middle East, but the looming crisis in Iraq and terrorism have generated fears of a disruption in oil supply. Diversifying oil sources is a common strategy, and Russia's energy market is an attractive alternative. Pipeline gas would be cheaper than oil imported from the Middle East and would reduce northeast Asia's foreign exchange burdens, some scholars say.

Russian President Vladimir Putin, who has made energy trade and developing the Russian Far East's economy among the main priorities for his second administration, is deciding whether to construct pipelines connecting the Russian city of Angarsk in eastern Siberia to Daqing, China, where there's an oil pipeline network, and another one to Nakhodka, Japan. Transneft, Russia's state-owned pipeline monopoly, is said to favor the Angarsk-Nakhodka option.

Natural gas is expected to be sent to Japan through a proposed pipeline, called Sakhalin I. Gas exports are scheduled to begin in 2008. Japanese companies Mitsubishi and Mitsui are partners with Shell in another project, Sakhalin II, to develop Russia's first liquefied natural gas (LNG) facility.

Russia's gross domestic product (GDP) grew by 7.3 percent in 2003, with petroleum, petroleum products and natural gas its main exports, according to the EIA, which says it has proven 60 billion barrels of oil reserves.

The Russian Far East, remote and largely economically isolated from the rest of the country, has considerable natural resources. However, much of the Russian Far East's vast volumes of untapped gas, condensate, and oil reserves lack critical infrastructure and require foreign technology and investment to become profitable. The natural gas industry, in particular, is underdeveloped.

For Russia, which hasn't worked out a comprehensive policy for Asia, geopolitics may trump geoeconomics on energy issues. The Turkey-Russia oil pipeline has taught Russia it's risky to depend solely on a country to buy its major exports, said Michael Bradshaw, professor of human geography at the University of Leicester in Britain. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

New Energy for Reintegration: Oil Exports Are Fueling Russia's Ties to East Asia
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.