Saturday, 11 May 2013

Case study- East Siberia Pacific Ocean pipeline.

ESPO- Gas prom pipeline. Supplies nearly all of Asia's gas decreasing reliance on the Middle East.
Russia has a lot of oil and gas and is connected to China and Japan also it has made a deal with China to meet China's gas demand. As the pipes are going through any countries to reach the consumers this may cause geopolitics if the oil leaks also it has been re-routed due to environmental impacts of this pipeline eg it would have passed the habitat of the Amur cat which is a endangered species.


›ESPO oil pipeline to be completed by 2016 – 2600 miles long
›The pipeline offer Russia a new energy pathway into Pacific markets – markets which are increasing in consumption!›Russia, China & Japan are interested in the pipeline for Geopolitical reasons›China & Japan competing for Russia’s oil and ESPO to secure their future energyTo support it’s rapid economic growthChina’s communist part need reliable energy supplies to maintain controlCurrent Oil comes by tanker through the Strait of Malacca (near Malaysia) and are subject to pirate attacksJapan wants Russias oil It has almost no oil reserves of it’s ownIt’s the World’s 3rd largest oil consumer¾ of oil comes from the Middle East so it is very dependent on this unstable part of the WorldAccess to ESPO will reduce dependency by 15%Japan wants to engage with Russia & increase economic and political influence that is fallingJapanese government to finance ESPO project $7 billion if pipeline doesn’t end in China but extends to Pacific Coast closer to Japan.This would restrict Chinese access to Russia’s oil & strengthen Russia & Japan’s relationshipRussia will also be able to export to other pacific countries such as Malaysia


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