of the former Soviet Union are major oil and gas producers. Although
onshore oil production will reach a peak around 2012, new offshore
production from Russia and Kazakhstan in the Caspian Sea and from Russia
off Sakhalin Island will continue to impact the market over the long
Both onshore and offshore gas production were rising from Russia,
Azerbaijan, and Kazakhstan, and also from onshore Turkmenistan and
Uzbekistan but the recession has reduced demand, especially for Russian
gas, and so developments will be delayed, leading to some reduction in
output for a period up to 2012.
Former Soviet Union gas demand is bound to increase
rapidly as new supplies are realised, replacing other fuels (especially
oil) wherever possible.
Exports of oil will continue to grow whilst gas exports will decline
through to 2013 before rising again when new supplies come onstream able
to offset new demand needs in Europe and Asia. There are strong
incentives for the FSU to develop more gas to serve the needs of these