Originally posted by fritzmorgen at Energy Superpower
In the city of Sochi gas pipeline started working, laid there on the bottom of the sea. And that, colleagues, made me very happy.
In Soviet times, we are proud of our hidden in the depths of the riches. Geologists were then popular heroes, singing songs about them and made films. Now the word "oil" and "gas" became almost abusive.
"The oil needle", "raw materials appendage", "eating up resources", "Northern Nigeria" … skillfully launched several viral ideas — and here we are not proud of, and we are ashamed of our wealth. Roughly the work cultists: they first convince convert that money — it is evil, and then help the poor thing to deal with "evil" by the transfer of these "unclean" money by sectarians.
However, no matter how sweet it was whining about being poor and happy about the corrupting oil, the main value in the modern world — it’s just energy.
Did you know that Saudi Arabia is growing for export potatoes and wheat? Saudi Arabia is the same, which is almost entirely made up of deserts and semi-deserts, and which would seem to Gd Himself commanded buy food abroad …
And the solution is simple — energy. In today’s world, the one who possesses the energy, owns everything.
There is an energy — it is possible to pump fresh water almost a kilometer from the depth or desalinate salt water of the Red Sea and the Persian Gulf. No energy? Pray that enough money on diesel fuel for tractors and for gas boilers.
Oil is now converted into any of the products and merchandise, from cucumbers, tomatoes to plastic and titanium. And not converted by the formula "oil — money — commodity", as some readers of the pro-Western media, and is converted directly.
Take the same titanium used to make aircraft, reactors, body armor, wheels, dentures, and much more, starting with paint additives. Ever wonder why the world’s largest manufacturer of titanium — the company VSPMO-AVISMA — is located right here in Russia?
Because of titanium on the planet — even ass eat. But for removal of earth rocks requires so much energy that only energy-rich powers, such as Russia or the same Saudi Arabia can afford to produce it.
Two centuries ago, when slowly began the era of industrialization, universal resource was not oil, and steel. The countries that were able to produce steel, were "a horse." Countries that could not produce steel …
China, for example, tried to become a planetary mill back in time. And — maybe — he would have even succeeded. However, so Generate map coal and iron deposits in China were located too far from each other and from the sea routes. A steel plant were needed for both of these resources. Throw the same to the required deposit railroad Chinese could not — as for the construction of the railroad was required, again, steel.
But rich in iron and coal England, where deposits were often almost a few kilometers away from each other, built near the steel mills of the soul. Which allowed her to hold the title of the greatest nation in the world almost to the middle of the twentieth century …
And so. Currently, no factories, no fresh water, no geographical location has no particular economic significance. Universal Currency — Energy — Need for everybody and can easily be converted into anything.
In the early nineties, Russia was in a very difficult situation. On the one hand, we have owned an extremely valuable energy resources. On the other hand, Russia did not have enough power to protect their property.
Therefore, the "civilized countries", to which I now do not want to point fingers, we decided to provide its energy security at the expense of Russia. That is, buy for next to nothing our oil and gas fields, and then exploit them for his own pleasure, listing for it in the Russian budget symbolic penny.
This plan was partially implemented through the so-called "PSA" — production-sharing agreements. According to which the Russian oil fields to Western companies were given to those from the bounty, shared with us their profits from the exploitation of these deposits. At the same time profit, by the way, it might not be at all: inflate costs and to show if oil production is at a loss — is simple enough.
Not to be unfounded, I will refer to a fun table, painted by one of the supporters of PSA in the midst of mayhem in January of 1998:
As you can see, if by then the current tax system with state oil received in the form of taxes 47% -55%, then the translation of the same fields in the PSA regime battered the state is only 18% -26%. The logic of the defense PSA was extremely cynical: let the state will receive from crude oil three times less in taxes, but we can sell ten times more oil, so the total amount will be saw cut above.
However, in reality, the Russian budget often do not get even 18% of the promised …
Fortunately, in the zero years managed to turn the situation to our advantage. In the political leadership of the country have the strength to ignore vereschanie "independent experts" and give a civilized democratic countries on the hands: we terminate unprofitable production sharing agreement. Oil and gas companies have started to pay taxes in full. All the oil rent has gone into the budget.
Our Western friends, the plans of which Russia has already passed a banana republic with purchased at the root mode, howled with rage. Perhaps if we were Iraq or Libya, we would have difficulty. But — thanks to our Strategic Rocket Forces — an option to connect to the traditional Russian program "oil-for-democracy" is not seriously considered.
What the distribution of oil revenues today?
Oil and gas companies pay the so-called severance tax — a tax on mining. This tax is "clipped" to the state all excess revenues obtained oil workers / gas companies from high oil prices.
For example, in the past (2010), the severance tax revenue totaled 1.377 trillion rubles:
In addition to the mining companies pay a severance tax and other taxes, so that the overall tax burden, such as the Petroleum is now about 65%:
In principle, one could increase the tax burden even further and take away the oil 90% or even more. But then we would have to forget about the development of new deposits, exploration and exploitation of which is very expensive …
By the way, we should also take into account that the major mining companies now belong to the state. So in reality, with the same Gazprom, which owns half of the Russian Federation, the budget is not only taxes but also income. Which, let’s say, in 2010, amounted to nearly a trillion rubles:
Was clear to the scale of these numbers: in 2010, spending on pensions amounted to about 3.4 trillion rubles.
Illustrate spurt in tax collection, which we have done in the zero’s. I compare the 2,000 th and 2,004 th year. The price of oil over the years has risen by only thirty percent, from 26 to 34 dollars per barrel. Oil exports increased by 20%. A Russian budget revenues in U.S. dollar terms over the same period increased … more than four times!
w for every dollar price of a barrel of Urals oil we get to the budget of about three billion dollars in additional revenue. Ten years ago, this figure was several times lower.
However, no matter how important the financial aspect, the oil — it’s not just the money. It is also a politician. Russia is now in a unique position, unlike most other oil-rich countries, we have full control of their resources. Therefore, we are able to seriously affect countries that depend on supplies of our gas and oil.
Just in case, I note that the "depth of processing", which often put Russia in reproach, to put it mildly, not the most significant parameter. Arguments like "wild sell cheap Russian oil from which the cunning Europeans make expensive gasoline" are common demagoguery:
Of course, oil refineries are also needed, but our main economic challenge now — to build the energy infrastructure: pipelines and nuclear power plants. At the same time, of course, very important to lay the strategic "thread" of pipelines abroad, to drive through them trumps the clutches of predatory stealing our gas transit blackmailers.
But even more important — to build the circulatory system of energy supply in our country. Since any economic development is only possible if there is sufficient generating capacity.
Bovanenkovo — Ukhta
Despite the plight of the nineties, Russia still managed to find the strength to fight off the help of democratic countries. We have reserved the right to dispose of our oil and gas. And we continue to develop our energy infrastructure: both external and internal.
Of course, we still have many unresolved problems while starting from the same gasification countryside. However, it’s time to admit the obvious.
Our "civilized" friends did their best, but they have not managed to turn Russia into an obedient raw materials appendage. On the contrary, we have grown into a real energy superpower.