Russia’s Gas Weapon

I’ve written about Peak Oil, and how 2006 could be the year when world oil production declines. However, even if production does keep pace with demand, the oil patch should remain a good investment. North American players should do particularly well, since they provide secure hydrocarbon sources for our increasing energy needs.

The ongoing Ukrainian debacle highlights the problem quite well. After all, Russia is supposed to be one of the more stable suppliers in the marketplace. Yet its autocratic government has proven quite willing to use the country’s natural gas as a political weapon. This really makes me wonder how attractive Gazprom(Nasdaq: OGZPF.PK) will be if they get listed on the NYSE. It also makes me rethink my ownership of PetroChina(NYSE: PTR), given many scenarios where the Chinese government could forsake profits for political gain.