Recently, the question of the world's major energy companies entering the oil sector of Iraq's Kurdish autonomy and as a consequence, the deterioration of relations between the central government of Iraq and the Kurdish administration has become more and more topical. READ MORE

BP’s latest annual Statistical Review of World Energy has revealed Turkmenistan’s proven gas reserves as even bigger than previously assessed (see accompanying article). From Ashgabat’s perspective, European gas markets must look more lucrative and reliable compared with Turkmenistan’s existing export markets in China, Russia, and Iran (let alone the proposed trans-Afghan export route). The westward direction remains the only missing direction for Turkmenistani gas exports. Turkmenistan has started construction of the East-West pipeline, to run from its eastern gas fields to the Caspian coast, there to connect with a westbound trans-Caspian pipeline. Ashgabat proposes to deliver 30 billion cubic meters (bcm) annually through this line, and another 10 bcm annually from its Caspian offshore fields, for onward transportation to Europe after 2016. Turkmenistan plans to finance the overland pipeline from its own budget, but is running into problems with funding and subcontracting some of the work. READ MORE

The Prime Minister of Hungary Viktor Orbán reported that, Hungarian company MOL withdraws from the consortium on NABUCCO gas pipeline construction. According to the estimations of the experts, withdrawal from NABUSSO proves the fact that Hungary is more involved with Russian project “South Stream”. Yet in 2009 ex Prime Minister of Hungary Gyurcsány Ferenc said that Hungary should stand up for the construction of the both pipelines – NABUCCO and “South Stream” - with all its might. However as we see they didn’t manage to preserve this line: current Prime Minister of Hungary Viktor Orbán has made the priority not policy but “simple economic solutions”. “Through the territory of Hungary it is planned to pipe one of the branches of “South Stream” gas pipeline, which directly –  along the bottom of the Black Sea should connect Russia with the EU, - comments on the situation “Deutsche Welle”. – This project, which is lobbied by Gazprom, is considered to be the rival of NABUCCO. That is why in Budapest they could consider that it’s more beneficial to promote cooperation with Russia than force the construction of NABUCCO ". But earlier also the Prime Minister of Bulgaria Boyko Borisov during the meeting with the President of the Council of Europe Herman van Rompuy declared that “Bulgaria has no possibility to accomplish NABUCCO project”, although recently Sophia have given this project the status of state priority. READ MORE

Potential large shale gas deposits in Europe have raised hopes that the old continent may in the future rely less on oil and natural gas imports from Russia. However, fears of potential environmental effects of hydraulic fracturing and the lack of a clear policy by the European Union have led to the suspension of shale gas exploration in France and Bulgaria in the past year. In April, environmental protests spread to Romania raising concerns that shale gas exploration could be stalled in yet another EU state. READ MORE