 | DrumBeat: November 16, 2006 | The Oil Drum | IHS Data Suggest Kuwaiti and Global Proved Oil Reserves Significantly Lower Than BP Estimates |  |
198 comments on DrumBeat: November 17, 2006
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Please let me know as I don't have a clue to the answer.
Russia is beginning to softly co-ordinate its export policy with OPEC.
An official SPR in Russia doesn't exist yet. But you have to take into account the fact that a pipe has a volume. The existing oil pipeline system is the best SPR.
A 1000 km pipe with 1m diameter has a volume of around 5 million barrels. Some abandoned parts of the system (for example the line to Lithuania) could be used to store excessive supply. So, OAO Transneft can fill in its system with marginal oil for a long time. This is so called technical oil.
By reducing the export of oil to the `near abroad' - Lithuania, Belarus and Ukraine - Russia achieves two goals simultaneously: to exert political and economic pressure onto not-fully-loyal countries and to synchronize the export policy with OPEC.