VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Vladimir Putin's opening remarks:
Ladies and gentlemen, colleagues,
Today we will be focusing on how to use this country's natural resources effectively. As you all know, representatives of oil companies brought up the issue of associated petroleum gas (APG) at our meetings with the officials from the energy industry. APG is a very valuable commodity used for both generating electricity and in the chemical industry.
At the same time, this valuable commodity is often burned off in flares at West Siberian oilfields because of a lack of the infrastructure required to utilize it. Sad as it is, as much as 20 billion cubic metres of APG is simply wasted.
This is mostly true of older oilfields. When exploration and development began there several decades ago, no one focused too much on environmental issues or the efficient use of mineral resources.
Things are different in newer oil provinces, such as in East Siberia. In these fields oil companies were required to use the available resources as fully as possible from the beginning.
But on the whole, we have faced with a somewhat complicated inheritance, and will need to focus on ways to deal with it effectively.
The required level of APG utilization should be no less than 95% by 2012. Oil producers that do not fulfill this requirement and continue to burn it off in flares will have to pay huge fines for excessive air pollution.
As you know, the whole world is concentrating on protecting the environment, Russia included. And, on top of that, burning off APG in flares is the same as burning money.
Sanctions are certainly not the only way to deal with the issue. Oil companies must also have positive stimuli for developing APG processing. For example, electricity generated from APG could have priority access to the country's power grids, which would encourage oil producers to invest in the construction of new generating capacities.
The Government has submitted a relevant bill to the parliament. I expect it to be considered and adopted soon.
Other uses for this important commodity need to be sought as well. All entities involved in this market need to be encouraged to use this product.
Lets us discuss this issue in greater detail.
