Thursday, December 31, 2009

Vladimir Putin Completes $14 Billion East Siberia-Pacific Ocean (ESPO) Oil Pipeline and Kozmino Port to Conquer Asian Energy Markets

Why are we not building ports and pipelines like this to revitalize our economy? When we spend our billions, the money only goes to bankers and not to improving our infrastructure. Instead, Russia gets the shiny, brand new oil pipelines and ports to gain advantages in the Asian energy markets!

Prime Minister Vladimir Putin pressed a button to get Siberian oil flowing into the first tanker for delivery to an Asian customer, in Hong Kong, from Russia’s Pacific coast. In addition to China, supplies will also target Japan and South Korea...

The Kozmino port, near Vladivostok, cost $2 billion to build and has the capacity to handle 300,000 barrels of crude per day (15 million tons per year), with oil quality comparable to that of Middle Eastern blends now dominating the market.

Transneft, the state pipeline monopoly, spent another $12 billion to lay the 2,694-kilometer ESPO pipeline through east Siberian wilderness to connect the area’s greenfields, being developed by oil majors Rosneft, TNK-BP and Surgutneftegaz, to the railway station of Skovorodino. The link has the capacity to carry 30 million tons a year.

Once again, I will ask, why is America not spending billions on infrastructure projects such as this Russian energy project?

Source: The Moscow Times

Image Source: David Dees

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