Russia interested in forming gas troika alliance with Iran

November 3, 2008 by · Leave a Comment
Filed under: Commodities News 

This is to be expecting going forward in the resource-centric era we have entered.  As important resources such as crude oil and natural gas dwindle, more we will see countries that have reserves of these resources consolidate their interests with other like minded countries.  This alliance alone, will unite 40% of the world’s proven natural gas reserves.  Next we should see actions that are consistent with maintaining an price that is elevated or near current levels.  We will just see production drop off significantly if the prices dip too low.  Countries that rely on petro-dollars have a vested interest to maintain a price level that does not collapse as we did  in the early 90’s.  The Financial Times even had a front page story last week that announced that the global annual decline rate was 9.1%.  That is no small amount of loss, we would need to double our fossil fuel production in around 10 years just to keep steady.  We need to start a massive spending program on renewables (focusing on wind & solar) right now so we can reduce our demand nationally.  We want to avoid friction between major powers at all possible during our transition periods.  

Reuters:

Russia is interested in gas swaps with Iran, Iran’s Oil Ministry news website reported on Saturday, in a fresh sign of efforts to deepen ties between two states who together account for 40 percent of world reserves.

 Russia, Iran and Qatar — which are respectively ranked first, second and third in the world in terms of gas reserves — agreed to boost cooperation at a meeting in Tehran last month.

After the meeting, Iran said there was consensus to set up a gas grouping like the Organisation of the Petroleum Exporting Countries (OPEC). Russia referred to a “big gas troika”.

Source: Reuters

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