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Even as the decision to stop gas supplies to Ukraine aggravates tensions with the U.S. and Europe, Russia faces a dilemma: it still needs Exxon Mobil Corp. (XOM), Halliburton Co. (HAL) and BP Plc (BP/) to maintain output from Soviet-era oil fields and develop Arctic and shale reserves.
Russia will require Western companies to provide the modern drilling and production gear -- and techniques such as hydraulic fracturing -- that are essential to unlocking its $8.2 trillion worth of barrels still underground.
The cutoff to Ukraine’s gas supply adds another layer of complexity for energy companies navigating a shifting geopolitical landscape in the search for new oil and gas supplies. Decision-makers from some of the West’s biggest oil explorers are gathering in Moscow this week at the World Petroleum Congress to pave the way to new deals.
“There’s certainly a prize there,” said Alexander Robart, a principal at PacWest Consulting Partners LLC, a Houston-based consultant that tracks fracking service providers. “For the big guys, it’s certainly one of the top priority future growth markets they’re looking towards, without a doubt.”
Russia’s latest aggression toward Ukraine can only heighten the political tensions companies already feel as they seek to justify broadening business ties to the country, said Fadel Gheit, an analyst at Oppenheimer & Co.
“It will move the scale a tad against Russia,” Gheit said, raising the chance the U.S. and Europe will push for additional sanctions.
At what point will our leaders, of ALL nations, understand the concept that the days of one nation being able to run the table are over with?
Don't you think it is time you give up this anti-Russia thing you have going? You're clearly ill.
Sanctions have had no impact on working in Russia yet, BP BP Chief Executive Officer Bob Dudley said in Moscow today.