Russia closing another door of oil availability to the United States

Another door of oil availability for the United States and other major oil consumers may be rapidly closing, as president Vladimir Putin’s Russia is retaking control of his nation’s vast energy resources.

After a decade of privatizing its state-owned enterprises in the wake of the Soviet Union’s breakup, Russia is rapidly reverting to state ownership under the aegis of its National Resources Ministry.

The latest multi-national oil oligarchy to feel President Putin’s heavy hand is Royal Dutch/Shell (the majority stakeholder in the huge Sakhalin-2 field).

Since Royal Dutch must now cede its interest to Gazprom, the Russian monopoly has achieved near total control of Russian oil and natural gas supplies. The decade of private investments in Russia’s giant oil industry is rapidly coming to an end.

The Desert Sun