Oil and Gas Supply -Europe and the Former Soviet Union

Oil and Gas Supply -Europe and the Former Soviet• Norwegian gas production continues to rise
Unionrapidly as new fields are developed, in particular the
Having witnessed in 2008 the first major signal thatTroll field and the deep water Ormen Lange
future conventional oil and gas supplies will becomefield, although the latter was downgraded in 2009.
much harder to find and more expensive to develop,New developments in the Barents Sea, including
Datamonitor is publishing this analysis of deep waterSnohvit, which ships gas into Europe's first LNG plant,
production around the world. As secure energyare also stemming declines. 
supplies become increasingly difficult and expensive to• Global demand is driving investment in Russian
extract, an accurate forecast of supply/demandgas reserves and output is due to grow from all
dynamics becomes more important. ( )prospective onshore and offshore areas, including 
Historically, global economic recessions have led toSakhalin and the Arctic north. However a global
declining energy demand, but the resultant lowersurplus of LNG, recognized in 2009, has delayed many
prices have soon led to a recovery in demand andof these projects, so production will not reach 2008
then prices, especially as OPEC has acted to rein inlevels again until around 2016. 
output to tighten supply. This trend has already been• Although foreign investment and new export
reflected in the oil markets to some degree. In theroutes are driving oil production, Turkmenistan is
gas sector, supplies will be available only if investmentprimarily a gas-producing country. It has
in infrastructure, above all long-distance pipelines andsome potential in lands adjacent to the Caspian Sea,
LNG conversion and receiving plants, is wellbut its most significant resources are located in the
advanced. Amu Darya basin in the southeast, where giant fields
Key findings and highlights have been reported.