106-398: The Obskaya–Bovanenkovo Line is a 572-kilometre long (355 mi) railway line in northern Russia, built and owned and operated by Gazprom . It was opened for traffic in 2010 and was built for the gas fields around Bovanenkovo on the Yamal Peninsula , the Yamal project . In February 2011, it was extended to the Karskaya station , making it 572 km long. Like most railways in
212-418: A joint-stock company . Gazprom began to distribute shares under the voucher method . (Each Russian citizen received vouchers to purchase shares of formerly state-owned companies). By 1994, 33% of Gazprom's shares had been bought by 747,000 members of the public, mostly in exchange for vouchers. Fifteen percent of the stock was allocated to Gazprom employees. The state retained 40% of the shares. That amount
318-538: A 3.8% increase from the 2011 figure which represented 18.4% of the world's reserves. In 2015, the reserves of crude oil were 1.355 billion tons and the reserves of gas condensate were 933.3 billion tons. 59.8 percent of Gazprom's natural gas reserves (Categories A+B+C1) were located in the Urals Federal District (decreasing), 20.5 percent in the Arctic shelf (increasing), and 8.3 percent in
424-643: A 41.4 GW capacity. The UGSS is the largest gas transmission system in the world. In 2008, the transportation system carried 714.3 billion cubic metres (25.23 trillion cubic feet) of gas. Gazprom has claimed the UGSS has reached its capacity. Major transmission projects include the Nord Stream pipelines as well as pipelines inside Russia. In 2021 Russia had two large liquefied natural gas (LNG) production plants, Yamal LNG and Sakhalin-2 LNG both of which Gazprom has an interest in. In March 2021,
530-542: A conversion of 26,4 m per million Btu it would correspond to a price of $ 285 per 1,000 cubic metres . At the same time, based on their respective contracts with Gazprom, German customers paid $ 250 per cubic metre (m ), Polish customers $ 290 per m , Ukraine customers $ 130 per m and Russian customers $ 49 per m . Since the start of the Russian invasion of Ukraine in February 2022 and as a result of falling export revenue,
636-731: A domestic gas industry. In 1965, it centralized gas exploration , development, and distribution within the Ministry of Gas Industry. In the 1970s and 1980s, the Ministry of Gas Industry found large natural gas reserves in Siberia , the Ural region and the Volga Region . The Soviet Union became a major gas producer. In August 1989, under the leadership of the minister of Gas Industry of the Soviet Union (1985-1989) Viktor Chernomyrdin ,
742-520: A fluid resembling petroleum, which when treated in the same way as the seep oil gave similar products. Young found that by slow distillation he could obtain several useful liquids from it, one of which he named "paraffine oil" because at low temperatures it congealed into a substance resembling paraffin wax. The production of these oils and solid paraffin wax from coal formed the subject of his patent dated October 17, 1850. In 1850, Young & Meldrum and Edward William Binney entered into partnership under
848-609: A joint company Shtokman Development AG for development of the field. On 8 April 2013, in Amsterdam, Alexey Miller , chairman of the Gazprom management committee, and Jorma Ollila , chairman of the board of directors of Royal Dutch Shell , signed in the presence of Putin and Mark Rutte , prime minister of the Netherlands , a memorandum outlining the principles of cooperation within hydrocarbons exploration and development in
954-512: A much shallower level. The Athabasca oil sands are one example of this. An alternative mechanism to the one described above was proposed by Russian scientists in the mid-1850s, the hypothesis of abiogenic petroleum origin (petroleum formed by inorganic means), but this is contradicted by geological and geochemical evidence. Abiogenic sources of oil have been found, but never in commercially profitable amounts. "The controversy isn't over whether abiogenic oil reserves exist," said Larry Nation of
1060-470: A north fork to Hungary. On 18 December 2007, Frank-Walter Steinmeier (who was then Foreign Minister of Germany) and Dmitry Medvedev signed an agreement on behalf of BASF to exploit another gas field. At the time, German demand was 40% covered by Russian supply. Some German academics warned that Germany had become too dependent of Russia but Steinmeier, citing the new Ostpolitik , disregarded them. On 11 February 2008 Kuprianov threatened Ukraine with
1166-476: A process known as catagenesis . Formation of petroleum occurs from hydrocarbon pyrolysis in a variety of mainly endothermic reactions at high temperatures or pressures, or both. These phases are described in detail below. In the absence of plentiful oxygen, aerobic bacteria were prevented from decaying the organic matter after it was buried under a layer of sediment or water. However, anaerobic bacteria were able to reduce sulfates and nitrates among
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#17327802283711272-665: A significant amount of petroleum while drilling for lignite in Wietze , Germany. Wietze later provided about 80% of German consumption in the Wilhelminian Era. The production stopped in 1963, but Wietze has hosted a Petroleum Museum since 1970. Oil sands have been mined since the 18th century. In Wietze in lower Saxony, natural asphalt/bitumen has been explored since the 18th century. Both in Pechelbronn as in Wietze,
1378-574: A source of internal and inter-state conflict, leading to both state-led wars and other resource conflicts . Production of petroleum is estimated to reach peak oil before 2035 as global economies lower dependencies on petroleum as part of climate change mitigation and a transition towards renewable energy and electrification . The word petroleum comes from Medieval Latin petroleum (literally 'rock oil'), which comes from Latin petra 'rock' (from Greek pétra πέτρα ) and oleum 'oil' (from Greek élaion ἔλαιον ). The origin of
1484-619: A state-owned company. Some analysts said the amount paid by Rosneftegaz for the stock was too low. The sale was completed by 25 December 2005. With the purchased stock and the thirty-eight percent share held by the State Property Committee, the Government of Russia gained control of Gazprom. The Government of Russia revoked the Gazprom twenty percent foreign ownership rule and the company became open to foreign investment. In September 2005, Gazprom bought 72.633 percent of
1590-701: A stoppage of flow; in January 2009 the threat was executed, beginning the 2009 Russia–Ukraine gas dispute . BASF's Jürgen Hambrecht was concerned about the reliability of his firm's supply but Miller assuaged his worries in a phone call, and the Europeans did nothing to change course for more than a decade. On 1 December 2014, during a visit to Turkey , Putin said the SouthStream project would not proceed and 63 billion cubic metres per year (bcm/y) of gas would be shipped to Turkey instead of Bulgaria . Bulgaria
1696-574: A subsidiary of BP plc , agreed to sell its stake in Kovykta field in Siberia to Gazprom after the Government of Russia questioned BP's right to export gas from Russia. On 1 August 2007, Gazprom's Sergey Kuprianov threatened Belarus with stoppage of their gas flow if the latter failed to pay off their debts and if so they would experience a 300% price increase. Two days later he saw significant progress towards payment and he expected to be paid by
1802-423: A trading loss and the need to increase the price in the domestic market by 34% over 3 years. Gazprom has also opened itself up to compensation claims for failure to supply gas under long term contracts. In 2011, Gazprom produced 513.17 billion cubic metres (18.122 trillion cubic feet) of natural gas, which was 17 percent of the worldwide production and 83 percent of Russian production. Of this amount,
1908-411: A variety of liquid, gaseous, and solid components. Lighter hydrocarbons are the gases methane , ethane , propane and butane . Otherwise, the bulk of the liquid and solids are largely heavier organic compounds, often hydrocarbons (C and H only). The proportion of light hydrocarbons in the petroleum mixture varies among oil fields . An oil well produces predominantly crude oil. Because the pressure
2014-526: A visit to Fort Duquesne in 1750. Early British explorers to Myanmar documented a flourishing oil extraction industry based in Yenangyaung that, in 1795, had hundreds of hand-dug wells under production. Merkwiller-Pechelbronn is said to be the first European site where petroleum has been explored and used. The still active Erdpechquelle, a spring where petroleum appears mixed with water has been used since 1498, notably for medical purposes. There
2120-554: A year before Drake's Pennsylvania operation and could be argued to be the first commercial oil well in North America. The discovery at Oil Springs touched off an oil boom which brought hundreds of speculators and workers to the area. Advances in drilling continued into 1862 when local driller Shaw reached a depth of 62 metres using the spring-pole drilling method. On January 16, 1862, after an explosion of natural gas , Canada's first oil gusher came into production, shooting into
2226-673: Is Russia's honorary consul in Verona, a former Italian communist and a close associate of both Alexey Anatolievich Matveev ( Russian : Алексей Анатольевич Матвеев ; born 21 December 1963) and Vladimir Putin, Italy's gas supplied by Russia had greatly increased from 25 percent in 2004 to 70 percent. In May 2006, the European Union received about 25 percent of its gas supply from Gazprom. In 2006, Gazprom entered several long term gas contracts with European companies. The contract prices were mainly linked to oil prices. In 2014, Europe
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#17327802283712332-531: Is a stub . You can help Misplaced Pages by expanding it . This article about a Russian building or structure is a stub . You can help Misplaced Pages by expanding it . Gazprom PJSC Gazprom (Russian: Газпром , IPA: [ɡɐsˈprom] ) is a Russian majority state-owned multinational energy corporation headquartered in the Lakhta Center in Saint Petersburg. The Gazprom name
2438-616: Is a contraction of the Russian words gazovaya promyshlennost ( газовая промышленность , gas industry). In January 2022, Gazprom displaced Sberbank from the first place in the list of the largest company in Russia by market capitalization. In 2022, the company's revenue amounted to 8 trillion rubles. Gazprom is vertically integrated and is active in every area of the gas industry, including exploration and production , refining , transport , distribution and marketing , and power generation . In 2018, Gazprom produced twelve percent of
2544-477: Is also a large oil producer through its subsidiary Gazprom Neft , producing about 41 million tons of oil with reserves amounting to 2 billion tons. The company also has subsidiaries in industrial sectors, including finance , media and aviation , and majority stakes in other companies. Gazprom was created in 1989, when the Soviet Ministry of Gas Industry was converted to a corporation , becoming
2650-491: Is called diagenesis , a word that means a transformation of materials by dissolution and recombination of their constituents. Kerogen formation continued to a depth of about 1 km from the Earth's surface where temperatures may reach around 50 °C . Kerogen formation represents a halfway point between organic matter and fossil fuels : kerogen can be exposed to oxygen, oxidize and thus be lost, or it could be buried deeper inside
2756-726: Is considered a sticky, black, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow. Venezuela also has large amounts of oil in the Orinoco oil sands , although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil . These oil sands resources are called unconventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570 × 10 ^ m ) of bitumen and extra-heavy oil, about twice
2862-738: Is done after a study of the relevant structural geology , analysis of the sedimentary basin , and characterization of the petroleum reservoir . There are also unconventional reserves such as oil sands and oil shale which are recovered by other means such as fracking . Once extracted, oil is refined and separated, most easily by distillation , into innumerable products for direct use or use in manufacturing. Products include fuels such as gasoline (petrol), diesel , kerosene and jet fuel ; asphalt and lubricants ; chemical reagents used to make plastics ; solvents , textiles , refrigerants , paint , synthetic rubber , fertilizers , pesticides , pharmaceuticals , and thousands of others. Petroleum
2968-473: Is lower at the surface than underground, some of the gas will come out of solution and be recovered (or burned) as associated gas or solution gas . A gas well produces predominantly natural gas . However, because the underground temperature is higher than at the surface, the gas may contain heavier hydrocarbons such as pentane, hexane , and heptane (" natural-gas condensate ", often shortened to condensate. ) Condensate resembles gasoline in appearance and
3074-654: Is majority-owned by the Russian government , via the Federal Agency for State Property Management and Rosneftegaz , while the remaining shares are traded publicly. Gazprom, listed on the Moscow Exchange, had a market capitalization of RUB3.94T (US$ 44.96 billion) in March 2000, which increased to US$ 80.56 billion by September 2019. In 1943, during World War II , the government of the Soviet Union developed
3180-756: Is now called the Drake Well in Cherrytree Township, Pennsylvania .There also was a company associated with it, and it sparked a major oil drilling boom. The first commercial oil well in Canada became operational in 1858 at Oil Springs, Ontario (then Canada West ). Businessman James Miller Williams dug several wells between 1855 and 1858 before discovering a rich reserve of oil four metres below ground. Williams extracted 1.5 million litres of crude oil by 1860, refining much of it into kerosene lamp oil. Williams's well became commercially viable
3286-451: Is similar in composition to some volatile light crude oils . The hydrocarbons in crude oil are mostly alkanes , cycloalkanes and various aromatic hydrocarbons , while the other organic compounds contain nitrogen , oxygen , and sulfur , and traces of metals such as iron, nickel, copper and vanadium . Many oil reservoirs contain live bacteria. The exact molecular composition of crude oil varies widely from formation to formation but
Obskaya–Bovanenkovo Line - Misplaced Pages Continue
3392-526: Is to extend the railway to the Yamal LNG installations at Sabetta . The railway is the northernmost railway in the world, since Bovanenkovo is located at 70°22′30″N 68°40′12″E / 70.37500°N 68.67000°E / 70.37500; 68.67000 , farther north than the Kirkenes–Bjørnevatn Line , previously the northernmost. Plans to construct a more northerly railway to serve
3498-473: Is used in manufacturing a vast variety of materials essential for modern life, and it is estimated that the world consumes about 100 million barrels (16 million cubic metres ) each day. Petroleum production played a key role in industrialization and economic development. Some countries, known as petrostates , gained significant economic and international power over their control of oil production and trade. Petroleum exploitation can be damaging to
3604-812: The Arctic shelf and a section of the deep-water shelf. In 2008, Gazprom carried out 284.9 kilometres (177.0 mi) of explorative well drilling; 124,000 kilometres (77,000 mi) of 2D seismic and 6,600 square kilometres (2,500 sq mi) of 3D seismic survey. As a result, gas reserves grew by 583.4 billion cubic metres (20.60 trillion cubic feet), and crude oil and gas condensate reserves grew by 61 million tons. Gazprom carries out prospecting and exploration in foreign countries such as India , Pakistan , Algeria , Venezuela , Vietnam , Libya , Kazakhstan , Uzbekistan , Kyrgyzstan and Tajikistan . Gazprom's Unified Gas Supply System (UGSS) includes 158,200 kilometres (98,300 mi) of gas trunklines and branches and 218 compressor stations with
3710-643: The Baffinland Iron Mine in Canada have been deferred. Before completion of the railway to Bovanenkovo, the most northerly railway in Russia was the Norilsk railway . Due to all Russian railways being built to gauges other than standard gauge (usually Russian gauge , but a few narrow gauge lines also exist), the lines in Norway can however continue to claim being the northernmost standard gauge railway. This Russian rail transport related article
3816-559: The Baltic Sea for sea transportation westward. It would process ethane -containing natural gas with a capacity of 13 million tons of LNG per year. In 2024, Gazprom faced a significant shortage of LNG tankers, leading the company to use the Marshal Vasilevskiy floating storage and regasification unit (FSRU) for exporting LNG from its Portovaya facility. This shortage occurred because Gazprom's regular tankers, such as
3922-741: The Black Sea . In 1997, the Blue Stream Pipeline agreement between Turkey and Russia was signed. In 2000, the first joint was welded. The pipeline has transported 16 billion cubic meters each year. Exploration of the Yamal peninsula has found reserves of over 10 trillion cubic metres of natural gas and over 500 million tons of oil and gas condensate. About 60 percent of these reserves are located in Bovanenkovo , Kharasavey and Novoportovo. The natural gas production capacity of
4028-591: The China National Petroleum Corporation made a contract worth $ 400 billion over thirty years. The contract was for Gazprom to deliver 38 billion cubic meters of natural gas per year to China beginning in 2018. In August 2014, construction began with pipes for the Power of Siberia pipeline delivered to Lensk, Yakutia. Russia will start supplying natural gas to China through the Power of Siberia pipeline on 20 December 2019 as part of
4134-674: The Earth's crust and be subjected to conditions which allow it to slowly transform into fossil fuels like petroleum. The latter happened through catagenesis in which the reactions were mostly radical rearrangements of kerogen. These reactions took thousands to millions of years and no external reactants were involved. Due to the radical nature of these reactions, kerogen reacted towards two classes of products: those with low H/C ratio ( anthracene or products similar to it) and those with high H/C ratio ( methane or products similar to it); i.e., carbon-rich or hydrogen-rich products. Because catagenesis
4240-530: The Nord Stream 2 contracts were signed, and by July 2021 the pipeline was commissioned. Following the Russian invasion of Ukraine in February 2022, the threat by Russia of reducing the supply of gas to Europe risked the Gazprom export market. When it was implemented, exports by Gazprom fell from the 185Bcm achieved in 2021 to 100Bcm in 2022 and fell again in 2023. The revenue of Gazprom, whilst initially supported by high prices collapsed in 2023 resulting in
4346-490: The Orinoco Belt . While significant volumes of oil are extracted from oil sands, particularly in Canada, logistical and technical hurdles remain, as oil extraction requires large amounts of heat and water, making its net energy content quite low relative to conventional crude oil. Thus, Canada's oil sands are not expected to provide more than a few million barrels per day in the foreseeable future. Petroleum consists of
Obskaya–Bovanenkovo Line - Misplaced Pages Continue
4452-611: The Russia-Ukraine gas dispute , Gazprom ceased the supply of gas to the Ukrainian market. Gazprom called on the government of Ukraine to increase its payment for natural gas in line with increases in global fuel prices. During the night of 3 January 2006, and early morning of 4 January 2006, Naftogas of Ukraine and Gazprom negotiated a deal that temporarily resolved the long-standing gas price conflict between Russia and Ukraine. On 3 April 2006, Gazprom announced it would triple
4558-773: The Russian President , appointed Viktor Chernomyrdin , Gazprom's Chairman, his Prime Minister , the company's political influence increased. Rem Viakhirev took the chairmanship of Gazprom's Board of Directors and Managing Committee. Following the Decree of the President of the Russian Federation of 5 November 1992, and the Resolution of the Government of Russia of 17 February 1993, Gazprom became
4664-628: The Southern Federal District and North Caucasus Federal District . Gazprom has invested about 480 billion rubles ($ 20 billion) in new major projects in order to maintain supply. Nearly 37 percent of Gazprom's reserves are located in the Yamal Peninsula and in the Barents Sea . One of Gazprom's major projects is the Blue Stream Pipeline. The Blue Stream Pipeline delivers natural gas to Turkey via
4770-748: The Soviet Union in total output. In 1973 , Saudi Arabia and other Arab nations imposed an oil embargo against the United States, United Kingdom, Japan and other Western nations which supported Israel in the Yom Kippur War of October 1973. The embargo caused an oil crisis . This was followed by the 1979 oil crisis , which was caused by a drop in oil production in the wake of the Iranian Revolution and caused oil prices to more than double. The two oil price shocks had many short- and long-term effects on global politics and
4876-540: The United States , but is responsible for only one percent of electricity generation. Petroleum's worth as a portable, dense energy source powering the vast majority of vehicles and as the base of many industrial chemicals makes it one of the world's most important commodities . The top three oil-producing countries as of 2018 are the United States, Russia , and Saudi Arabia . In 2018, due in part to developments in hydraulic fracturing and horizontal drilling ,
4982-742: The Yamburg subsidiary produced 41 percent, Urengoy 23.6 percent, Nadym 10.9 percent, Noyabrsk 9.3 percent and others 15.2 percent. In addition, the company produced 32.28 million tons of oil and 12.07 million tons of gas condensate. The majority of Gazprom's fields are located in the Nadym-Pur-Taz region (near the Gulf of Ob ) in Yamalo-Nenets Autonomous Okrug in Western Siberia . Historically,
5088-455: The actinomycetales order of bacteria also produced antibiotic compounds (e.g., streptomycin ). Thus the action of anaerobic bacteria ceased at about 10 m below the water or sediment. The mixture at this depth contained fulvic acids, unreacted and partially reacted fats and waxes, slightly modified lignin , resins and other hydrocarbons. As more layers of organic matter settled into the sea or lake bed, intense heat and pressure built up in
5194-585: The 12th century. It has also been present in Romania since the 13th century, being recorded as păcură. Sophisticated oil pits, 4.5 to 6 metres (15 to 20 ft) deep, were dug by the Seneca people and other Iroquois in Western Pennsylvania as early as 1415–1450. The French General Louis-Joseph de Montcalm encountered Seneca using petroleum for ceremonial fires and as a healing lotion during
5300-503: The American Association of Petroleum Geologists. "The controversy is over how much they contribute to Earth's overall reserves and how much time and effort geologists should devote to seeking them out." Three conditions must be present for oil reservoirs to form: The reactions that produce oil and natural gas are often modeled as first order breakdown reactions, where hydrocarbons are broken down to oil and natural gas by
5406-516: The Baltic states. Gazprom received about 60 percent of its revenue from its sales to European customers. In 2008, the average gas price paid by Russian industrial customers was $ 71/mcm, while households paid $ 54/mcm. Since 2000, Natural gas prices have fluctuated. In late 2007, the price of natural gas at the New York NYMEX was $ 7.53 per million British thermal units ($ 25.7/ MWh ). At
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#17327802283715512-468: The Bovanenkovo field was estimated to be 115 billion cubic metres per annum (4.1 trillion cubic feet per annum), with potential to increase to 140 billion cubic metres per annum (4.9 trillion cubic feet per annum). The Shtokman field is one of the world's largest natural gas fields. It is located in the central part of the Barents Sea , 650 kilometres (400 mi) northeast of
5618-544: The Chinese to build the remaining pipeline. In January 2023, as a result of the sanctions imposed on Russia (as a result of the invasion of Ukraine in 2022), Gazprom announced its exports of gas fell 45% from 185Bcm to 101Bcm, mainly due to the loss of the European market. During 2023 exports fell again, with Europe purchasing just 28Bcm, a level not seen since the 1970's. On 1 January 2006, at 10:00 (Moscow time), during
5724-455: The Earth's surface. Unusual magma intrusions, however, could have created greater localized heating. Geologists often refer to the temperature range in which oil forms as an "oil window" . Below the minimum temperature oil remains trapped in the form of kerogen. Above the maximum temperature the oil is converted to natural gas through the process of thermal cracking . Sometimes, oil formed at extreme depths may migrate and become trapped at
5830-946: The Gazprom Neft shares for $ 13.1 billion. Gazprom's ability to supply natural gas to domestic market and for reexport has relied to a large extent on imports from Central Asia . In 2007, Gazprom imported a total of 60.7 billion cubic metres (2.14 trillion cubic feet) from Central Asia: 42.6 billion cubic metres (1.50 trillion cubic feet) from Turkmenistan , 8.5 billion cubic metres (300 billion cubic feet) from Kazakhstan , and 9.6 billion cubic metres (340 billion cubic feet) from Uzbekistan . In particular, Gazprom purchased seventy-five percent of Turkmenistan gas exports in order to supply gas to Ukraine . In 2008, Gazprom paid $ 130/mcm to $ 180/mcm for gas from Central Asia. In 2015, Gazprom's proved and probable reserves of natural gas were 23.705 trillion cubic metres (837.1 trillion cubic feet),
5936-537: The Government of Russia received little in dividends . Gazprom managers and board members, such as Chernomyrdin and the Gazprom Chief Executive Officer , Rem Viakhirev , engaged in asset-stripping . Gazprom assets were shared amongst their relatives. Itera , a gas trading company also received Gazprom assets. In March 1998, for reasons unrelated to his activities at Gazprom, Chernomyrdin was fired by Yeltsin. On 30 June 1998, Chernomyrdin
6042-628: The Ministry of Gas Industry was renamed the State Gas Concern Gazprom , and became the Soviet Union's first state-run corporate enterprise. In late 1991, when the Soviet Union dissolved , gas industry assets were transferred to newly established national companies, such as Naftogaz and Turkmengaz . Gazprom kept assets located in Russia and secured a monopoly in the gas sector. In December 1992, when Boris Yeltsin ,
6148-539: The Pskov, were involved in extended voyages to Asia, avoiding the Suez Canal and Red Sea due to security threats from Houthi attacks . In 2006, Gazprom sold 316 billion cubic metres (11.2 trillion cubic feet) of gas to domestic customers; 162 billion cubic metres (5.7 trillion cubic feet) to the rest of Europe; and 101 billion cubic metres (3.6 trillion cubic feet) to CIS countries and
6254-497: The Russian Government authorised a long-term programme to develop and expand the liquefied natural gas industry in Russia with nine more LNG plants, to address the growing global LNG market. In August 2021 Russia's first LNG bunkering vessel, Dmitry Mendeleev , was completed for Gazprom. In October 2021, Gazprom and RusGazDobycha announced they would build a new plant, Baltic LNG , at Ust-Luga , with access to
6360-525: The Soviet Union included the goal to capture the Baku oilfields , as it would provide much-needed oil supplies for the German military which was suffering from blockades. Oil exploration in North America during the early 20th century later led to the U.S. becoming the leading producer by mid-century. As petroleum production in the U.S. peaked during the 1960s, the United States was surpassed by Saudi Arabia and
6466-576: The United States became the world's largest producer. About 80 percent of the world's readily accessible reserves are located in the Middle East , with 62.5 percent coming from the Arab five: Saudi Arabia , United Arab Emirates , Iraq , Qatar , and Kuwait . A large portion of the world's total oil exists as unconventional sources, such as bitumen in Athabasca oil sands and extra heavy oil in
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#17327802283716572-450: The air at a recorded rate of 480 cubic metres (3,000 bbl) per day. By the end of the 19th century the Russian Empire, particularly the Branobel company in Azerbaijan , had taken the lead in production. Access to oil was and still is a major factor in several military conflicts of the 20th century, including World War II , during which oil facilities were a major strategic asset and were extensively bombed . The German invasion of
6678-434: The area around modern Baku , Azerbaijan . These fields were described by the Persian geographer Abu Bakr al-Razi in the 10th century, and by Marco Polo in the 13th century, who described the output of those wells as hundreds of shiploads. Arab and Persian chemists also distilled crude oil to produce flammable products for military purposes. Through Islamic Spain , distillation became available in Western Europe by
6784-500: The city of Murmansk and 1,000 kilometres (620 mi) west of the Yamal Peninsula. The field is estimated to contain up to 3.7 trillion cubic metres (130 trillion cubic feet) of gas. Potential production is 71 billion cubic metres per annum (2.5 trillion cubic feet per annum) in the initial phases, with a potential increase to 95 billion cubic metres per annum (3.4 trillion cubic feet per annum). Gazprom, TotalEnergies (France) and Statoil (Norway) created
6890-474: The coal industry dominated the petroleum technologies. Chemist James Young in 1847 noticed a natural petroleum seepage in the coal mine at riddings Alfreton , Derbyshire from which he distilled a light thin oil suitable for use as lamp oil, at the same time obtaining a more viscous oil suitable for lubricating machinery. In 1848, Young set up a small business refining crude oil. Young eventually succeeded, by distilling cannel coal at low heat, in creating
6996-403: The contract, Russia was to supply 38 billion cubic meters of gas annually over 30 years at a cost of $ 350 per thousand cubic meters beginning in 2018. In 2013, the average price of Gazprom's gas in Europe was about $ 380 per thousand cubic meters. China offered a loan of about $ 50bn to finance development of the gas fields and the construction of the pipeline by Russia up to the Chinese border, with
7102-399: The domestic market will see price rises of 34% by July 2025. Gazprom delivered gas to 25 European countries. Its main export arm is Gazprom Export LLC, founded in 1973 and before 1 November 2006 known as Gazexport, which has a monopoly on gas exports to countries outside of the former Soviet Union. The majority of Russian gas in Europe is sold on 25-year contracts. In late 2004, Gazprom
7208-466: The earliest Chinese writings, cites that oil in its raw state, without refining, was first discovered, extracted, and used in China in the first century BCE. In addition, the Chinese were the first to record the use of petroleum as fuel as early as the fourth century BCE. By 347 CE, oil was produced from bamboo-drilled wells in China. In the 7th century, petroleum was among the essential ingredients for Greek fire , an incendiary projectile weapon that
7314-469: The environment and human health. Extraction , refining and burning of petroleum fuels all release large quantities of greenhouse gases , so petroleum is one of the major contributors to climate change . Other negative environmental effects include direct releases, such as oil spills , as well as air and water pollution at almost all stages of use. These environmental effects have direct and indirect health consequences for humans. Oil has also been
7420-425: The fact that it happened at relatively low temperatures (when compared to commercial pyrolysis plants) of 60 to several hundred °C. Pyrolysis was possible because of the long reaction times involved. Heat for catagenesis came from the decomposition of radioactive materials of the crust, especially K , Th , U and U . The heat varied with geothermal gradient and was typically 10–30 °C per km of depth from
7526-415: The families of sailors who died during the Kursk submarine disaster and additional criticism of Putin's handling of the Second Chechen War . Gusinsky then fled Russia which Gazprom taking over NTV. In June 2005, Gazprombank , Gazpromivest Holding, Gazfond and Gazprom Finance B. V., subsidiaries of Gazprom, sold a 10.7399% share of their stock for $ 7 billion to Rosneftegaz [ ru ] ,
7632-479: The first state-run corporate enterprise in the Soviet Union . After the Soviet Union's dissolution , Gazprom was privatized, retaining its Russia-based assets. At that time, Gazprom evaded taxes and state regulations and engaged in asset stripping . The company later returned to government control in the early 2000s, and since then, the company has been involved in the Russian government's diplomatic efforts, setting of gas prices, and access to pipelines. The company
7738-552: The former Russian Empire, it is built to Russian gauge . The railway contains a 3.9-kilometre long (2.4 mi) bridge, the Yuribey Bridge . It starts at Obskaya, branching off the Salekhard–Igarka Railway . The rail distance between Moscow and Bovanenkovo is 2,906 kilometres (1,806 mi). There are plans to extend the railway to Kharasavey making the railway 678 kilometres (421 mi) long. Another plan
7844-815: The global economy. They led to sustained reductions in demand as a result of substitution to other fuels, especially coal and nuclear, and improvements in energy efficiency , facilitated by government policies. High oil prices also induced investment in oil production by non-OPEC countries, including Prudhoe Bay in Alaska, the North Sea offshore fields of the United Kingdom and Norway, the Cantarell offshore field of Mexico, and oil sands in Canada. About 90 percent of vehicular fuel needs are met by oil. Petroleum also makes up 40 percent of total energy consumption in
7950-433: The global output of natural gas, producing 497.6 billion cubic meters of natural and associated gas and 15.9 million tonnes of gas condensate . Gazprom then exports the gas through pipelines that the company builds and owns across Russia and abroad, such as Nord Stream 1 and TurkStream . In the same year, Gazprom has proven reserves of 35.1 trillion cubic meters of gas and 1.6 billion tons of gas condensate. Gazprom
8056-408: The heavier end of the range, paraffin wax is an alkane with approximately 25 carbon atoms, while asphalt has 35 and up, although these are usually cracked in modern refineries into more valuable products. The lightest fraction, the so-called petroleum gases are subjected to diverse processing depending on cost. These gases are either flared off , sold as liquefied petroleum gas , or used to power
8162-658: The invention of the modern kerosene lamp (1853), the introduction of the first modern street lamp in Europe (1853), and the construction of the world's first modern oil "mine" (1854). at Bóbrka , near Krosno (still operational as of 2020). The demand for petroleum as a fuel for lighting in North America and around the world quickly grew. The first oil well in the Americas was drilled in 1859 by Edwin Drake at what
8268-446: The large number of co-eluted hydrocarbons within oil, many cannot be resolved by traditional gas chromatography. This unresolved complex mixture (UCM) of hydrocarbons is particularly apparent when analysing weathered oils and extracts from tissues of organisms exposed to oil. Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish, reddish, or even greenish). In
8374-411: The lower regions. As a consequence, compounds of this mixture began to combine in poorly understood ways to kerogen . Combination happened in a similar fashion as phenol and formaldehyde molecules react to urea-formaldehyde resins, but kerogen formation occurred in a more complex manner due to a bigger variety of reactants. The total process of kerogen formation from the beginning of anaerobic decay
8480-899: The matter to H 2 S and N 2 respectively by using the matter as a source for other reactants. Due to such anaerobic bacteria, at first, this matter began to break apart mostly via hydrolysis : polysaccharides and proteins were hydrolyzed to simple sugars and amino acids respectively. These were further anaerobically oxidized at an accelerated rate by the enzymes of the bacteria: e.g., amino acids went through oxidative deamination to imino acids , which in turn reacted further to ammonia and α-keto acids . Monosaccharides in turn ultimately decayed to CO 2 and methane . The anaerobic decay products of amino acids, monosaccharides, phenols and aldehydes combined into fulvic acids . Fats and waxes were not extensively hydrolyzed under these mild conditions. Some phenolic compounds produced from previous reactions worked as bactericides and
8586-426: The new price levels. Petroleum Petroleum is a naturally occurring yellowish-black liquid mixture. It consists mainly of hydrocarbons , and is found in geological formations . The term petroleum refers both to naturally occurring unprocessed crude oil, as well as to petroleum products that consist of refined crude oil. Conventional reserves of petroleum are primarily recovered by drilling , which
8692-410: The next week. On 23 June 2007, the governments of Russia and Italy signed a memorandum of understanding towards a joint venture between Gazprom and Eni SpA to construct a 558-mile (900 km) gas pipeline to carry 1.05 trillion cubic feet (30 km ) gas per year from Russia to Europe. This South Stream pipeline would extend under the Black Sea to Bulgaria with a south fork to Italy and
8798-754: The oil company Sibneft for $ 13.01 billion. Sibneft was renamed Gazprom Neft . The purchase was aided by a $ 12 billion loan. Gazprom became Russia's largest company. On the day of the deal the company worth was valued at £ 69.7 billion (US$ 123.2 billion). In July 2006, On Gas Export was enacted with nearly unanimous vote from the State Duma . This law gave Gazprom the exclusive right to export natural gas from Russia. In December 2006, Gazprom signed an agreement with Royal Dutch Shell , Mitsui and Mitsubishi , to take over fifty percent plus one share of Sakhalin Energy . In June 2007, TNK-BP ,
8904-520: The power to vote out Viakhirev. Chernomyrdin and Viakhirev were replaced by Dmitry Medvedev and Alexei Miller . They were Putin's prior employees in Saint Petersburg . Putin's actions were aided by the shareholder activism of Hermitage Capital Management Chief Executive Officer William Browder , and the former Russian Finance Minister Boris Fyodorov . Miller and Medvedev were to stop asset stripping at Gazprom and to recover losses. Itera
9010-578: The price of natural gas to Belarus after 31 December 2006. In December 2006, Gazprom threatened to cease supply of gas to Belarus at 10 am Moscow time on 1 January 2007, unless Belarus increased payments from $ 47 to $ 200 per 1,000 cubic metres or to cede control over its distribution network. Some analysts suggested Moscow was penalising Alexander Lukashenko , the President of Belarus, for not delivering on pledges of closer integration with Russia , while others noted that other countries like Armenia were paying as much for their gas as Belarus would with
9116-556: The proportion of chemical elements varies over fairly narrow limits as follows: Four different types of hydrocarbon appear in crude oil. The relative percentage of each varies from oil to oil, determining the properties of each oil. The alkanes from pentane (C 5 H 12 ) to octane (C 8 H 18 ) are refined into gasoline, the ones from nonane (C 9 H 20 ) to hexadecane (C 16 H 34 ) into diesel fuel , kerosene and jet fuel . Alkanes with more than 16 carbon atoms can be refined into fuel oil and lubricating oil . At
9222-644: The refinery's own burners. During the winter, butane (C 4 H 10 ), is blended into the gasoline pool at high rates, because its high vapour pressure assists with cold starts. The aromatic hydrocarbons are unsaturated hydrocarbons that have one or more benzene rings . They tend to burn with a sooty flame, and many have a sweet aroma. Some are carcinogenic . These different components are separated by fractional distillation at an oil refinery to produce gasoline, jet fuel, kerosene, and other hydrocarbon fractions. The components in an oil sample can be determined by gas chromatography and mass spectrometry . Due to
9328-412: The reservoir it is usually found in association with natural gas, which being lighter forms a "gas cap" over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in a semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen . In Canada, bitumen
9434-518: The same time the world's first, small, oil refinery was opened at Jasło in Poland (then Austria), with a larger one opened at Ploiești in Romania shortly after. Romania (then being a vassal of the Ottoman empire) is the first country in the world to have had its annual crude oil output officially recorded in international statistics: 275 tonnes for 1857. In 1858, Georg Christian Konrad Hunäus found
9540-523: The second half of the 19th century, the term became commonly known for the liquid form of hydrocarbons. Petroleum, in one form or another, has been used since ancient times. More than 4300 years ago, bitumen was mentioned when the Sumerians used it to make boats. A tablet of the legend of the birth of Sargon of Akkad mentions a basket which was closed by straw and bitumen. More than 4000 years ago, according to Herodotus and Diodorus Siculus , asphalt
9646-408: The term stems from monasteries in southern Italy where it was in use by the end of the first millennium as an alternative for the older term " naphtha ". After that, the term was used in numerous manuscripts and books, such as in the treatise De Natura Fossilium , published in 1546 by the German mineralogist Georg Bauer , also known as Georgius Agricola. After the advent of the oil industry, during
9752-572: The three largest fields are Medvezhe, Urengoy and Yamburg . After more than twenty years of production, the fields are now in decline. Production from the fields has decreased by twenty to twenty-five bcm per year. The production at Zaporliarnoe , Gazprom's fourth largest field, increased until 2004, offsetting the decline in the other fields. Since 2004, Gazprom has maintained production by activating new smaller fields and by purchasing production assets from other companies. Gazprom Neft produces crude oil. In 2005, Gazprom purchased 75 percent of
9858-539: The title of E.W. Binney & Co. at Bathgate in West Lothian and E. Meldrum & Co. at Glasgow; their works at Bathgate were completed in 1851 and became the first truly commercial oil-works in the world with the first modern oil refinery. The world's first oil refinery was built in 1856 by Ignacy Łukasiewicz in Austria. His achievements also included the discovery of how to distill kerosene from seep oil,
9964-583: The two countries' $ 400 billion energy pact. Beijing and Moscow are now negotiating over a second Far Eastern gas pipeline. In June 2014, Gazprom negotiated with the International Petroleum Investment Company (IPIC of Abu Dhabi ) over a 24.9 percent stake in the Austrian oil and gas firm OMV . In July 2014, Gazprom acquired Central Partnership , one of the largest film distributors in Russia. In September 2015
10070-468: The volume of the world's reserves of conventional oil. Petroleum is a fossil fuel derived from fossilized organic materials , such as zooplankton and algae . Vast amounts of these remains settled to sea or lake bottoms where they were covered in stagnant water (water with no dissolved oxygen ) or sediments such as mud and silt faster than they could decompose aerobically . Approximately 1 m below this sediment, water oxygen concentration
10176-634: Was activity in various parts of the world in the mid-19th century. A group directed by Major Alexeyev of the Bakinskii Corps of Mining Engineers hand-drilled a well in the Baku region of Bibi-Heybat in 1846. There were engine-drilled wells in West Virginia in the same year as Drake's well. An early commercial well was hand dug in Poland in 1853, and another in nearby Romania in 1857. At around
10282-829: Was being sued by the European Union for signing a contract with Russia, which was not aligned with European Union regulations. The president of Bulgaria, Rosen Plevneliev , pressured the European Union and Russia to quickly resolve the matter. On 4 September 2012, the European Commission announced an anti-trust investigation into Gazprom's activities. This was based on "concerns that Gazprom may be abusing its dominant market position in upstream gas supply markets." In late November 2013, Gazprom expanded its media interests by acquiring Profmedia from Vladimir Potanin . On 21 May 2014, in Shanghai , Gazprom and
10388-414: Was closed off from external reactants, the resulting composition of the fuel mixture was dependent on the composition of the kerogen via reaction stoichiometry . Three types of kerogen exist: type I (algal), II (liptinic) and III (humic), which were formed mainly from algae , plankton and woody plants (this term includes trees , shrubs and lianas ) respectively. Catagenesis was pyrolytic despite
10494-507: Was denied access to Gazprom's pipelines and came close to bankruptcy . In 2006, Itera agreed to return stolen assets to Gazprom for a fee. Browder was deported from Russia, in 2005, and the Russian arm of Hermitage Capital Management was seized two years later. In April 2001, Gazprom acquired NTV , Russia's only nationwide state-independent television station, from Vladimir Gusinsky 's company, Media-Most Holdings. Gusinsky fell out of Putin's favor after using NTV to publish criticism from
10600-468: Was gradually lowered to thirty-eight percent. Trading of Gazprom's shares was heavily regulated. Foreigners were prohibited from owning more than nine-percent of the shares. In October 1996, 1% of Gazprom's equity was offered for sale to foreigners as Global Depository Receipts . In 1997, Gazprom offered a bond issue of US$ 2.5 billion. Chernomyrdin, as Prime Minister of Russia , ensured Gazprom avoided tight state regulation. Gazprom evaded taxes, and
10706-423: Was low, below 0.1 mg/L, and anoxic conditions existed. Temperatures also remained constant. As further layers settled into the sea or lake bed, intense heat and pressure built up in the lower regions. This process caused the organic matter to change, first into a waxy material known as kerogen , found in various oil shales around the world, and then with more heat into liquid and gaseous hydrocarbons via
10812-586: Was made Chairman of the Board of Directors of Gazprom. When, in June 2000, Vladimir Putin became the President of Russia, he acted to gain control over Russia's oligarchs , and increase the Government of Russia's control in important companies through a program of national champions . Putin fired Chernomyrdin from his position as the Chairman of the Gazprom board. The Russian Government's stock in Gazprom gave Putin
10918-586: Was the sole gas supplier to Bosnia and Herzegovina, Estonia, Finland, Macedonia, Latvia, Lithuania, Moldova, Serbia and Slovakia. It provided 97 percent of Bulgaria's gas, 89 percent of Hungary's gas, 86 percent of Poland's gas, nearly 75 percent of the Czech Republic's, 67 percent of Turkey's, 65 percent of Austria's, about 40 percent of Romania's, 36 percent of Germany's, 27 percent of Italy's, and 25 percent of France's gas. By December 2010 with strong support from Alexander Medvedev and Antonio Fallico, who
11024-534: Was the source of 40% of Gazprom's revenue. The proportion of Europe's gas bought in the spot market rose from 15 percent in 2008 to 44 percent in 2012. In September 2013, during the G20 summit, Gazprom signed an agreement with CNPC that the Henry Hub index would not be used to settle prices for their trades. On 21 May 2014, Putin met with Xi Jinping and negotiated a $ 400bn deal between Gazprom and CNPC. Under
11130-479: Was used by Byzantine Greeks against Arab ships, which were then attacking Constantinople . Crude oil was also distilled by Persian chemists , with clear descriptions given in Arabic handbooks such as those of Abu Bakr al-Razi (Rhazes). The streets of Baghdad were paved with tar , derived from petroleum that became accessible from natural fields in the region. In the 9th century, oil fields were exploited in
11236-544: Was used in the construction of the walls and towers of Babylon ; there were oil pits near Ardericca and Babylon, and a pitch spring on Zakynthos . Great quantities of it were found on the banks of the river Issus , one of the tributaries of the Euphrates . Ancient Persian tablets indicate the medicinal and lighting uses of petroleum in the upper levels of their society. The use of petroleum in ancient China dates back to more than 2000 years ago. The I Ching , one of
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