Andrea Bonzanni

A strike by Chinese truckers in Shanghai made headlines in global media coverage, as it threatened operations in the world's largest port. But it is just the latest in a series of similar protests over rising fuel costs. As a consequence, China is finding it particularly hard to reform its oil pricing system to make it fully responsive to market signals, with worrisome implications for global energy markets. more

The entrance on March 21 of the German company Wintershall into the consortium backing the South Stream pipeline will revitalize a project that just a few weeks ago seemed destined to be quietly shelved. The unexpected revival of South Stream now has the potential to redraw the map of the European gas market. However, there are still significant unknowns surrounding the project's feasibility. more

The current wave of upheaval in the Arab world has steepened the ongoing rise in oil prices and raised fears about the stability of the global oil market. Markets have been nervous about the regular flow of oil tankers through the Suez Canal and the contagion effect of instability in an oil-rich region. The first problem should not be a concern. The second, though more worrisome, also does not justify the price rises.
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Many observers expected late-2010 to be the moment of truth for what the European Union calls its "Southern Corridor": a gas-transit route to Southern and Southeastern Europe, aimed at reducing Europe's dependence on Russian gas. With the moment of truth now upon us, however, the picture for the EU-backed Nabucco pipeline and Russia's South Stream project look quite different than what was anticipated.
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A conflict between Iran and Iraq over OPEC production quotas has been brewing at low intensity since late 2008, when Iraq announced the auction of several major fields. Iran subsequently began to apply direct pressure to Iraq, culminating in the Dec. 18 occupation of the al-Fakkah field. Recent back-to-back announcements by both countries increasing their oil reserve assessments signal the onset of a new phase of the dispute. more

On Sep. 6, three international financial institutions signed a mandate letter with the consortium behind the Nabucco pipeline, marking the start of an appraisal process that will eventually secure a €4 billion financing package for the project. However, despite the progress in financing the pipeline and the optimistic pronouncements that followed, filling Nabucco with gas still represents a major challenge.  more

The recently established customs union between Russia, Kazakhstan and Belarus represents the latest of several attempts by Moscow to create an effective trade bloc with its independent neighbors since the break-up of the Soviet Union. The economic benefits of unions of this kind are questionable, however, leading some analysts to speculate over why Moscow has assigned such a remarkably high priority to these projects.
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The last few weeks have been disappointing ones for European diplomacy and energy politics. In April, Russia began construction of the Nord Stream pipeline, while a recent proposal for a joint-venture between Gazprom and Ukraine's Naftogaz raises the real possibility of Russian participation in the Ukrainian pipeline network. Both events reveal the fundamental flaws of Europe's energy security policies. more

There is little doubt that as president of Ukraine, Viktor Yanukovych will decisively shift the country's geopolitical posture, with Kiev once again moving closer to Moscow after its pro-Western and pro-EU turn of 2005. The potential consequences on the EU's energy future are serious, as 80 percent of Russian natural gas exports to Europe transit through Ukrainian territory. more

In a two-round bidding procedure that concluded in mid-December, Iraq signed oil contracts that, if well-managed, could pay for the country's post-war reconstruction. However, Iraq's dramatic comeback as the world's second-largest oil producer is upsetting other market players -- in particular within OPEC, of which Iraq is still technically a member -- and could exacerbate broader regional tensions.
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Turkey continues to work along different tracks in its strategy to become the "gas hub" of Europe, as demonstrated by the official visit to Ankara of Azerbaijan's foreign minister in late December. The visit should set to rest speculation about Turkey's waning political support for the Nabucco pipeline, as well as Ankara's supposed reorientation toward Russia. more

Last month, the West officially lost the new "Great Game," the 20-year-long competition for natural resources and influence in Central Asia. Western defeat was already becoming clear with the slow progress of the Nabucco pipeline and the strategic reorientation of some Central Asian republics toward Russia and China. Two recent events, however, confirmed it. more

A flurry of recent agreements reveals Turkey's bold strategy in gas diplomacy, particularly its determination to receive as much gas as possible regardless of the source. While part of this dash to gas is justifiable by growing domestic needs, it is clear that Turkey nurtures ambitions of becoming a gas-hub, exploiting its geographical position to take full political advantage of the regional gas-trading system. more