Eurasia Energy Observer

Welcome to the Eurasia Energy Observer (EEO). Stretching from the North Sea to the Pacific Ocean, covering many of the former Soviet Union states, Eurasia is a vast continent rich in natural resources and one of the worldʼs leading hydrocarbon producers. The EEO provides customised independent analyses and advisory services on Eurasian energy affairs.

Despite the emergence of renewables and a call for less hydrocarbon consumption, most of the world's economies will continue to rely on hydrocarbons as the backbone in their energy mix for decades to come, with natural gas taking the lead. Eurasia is strategically and conveniently positioned to meet growing demand on these markets.

Moreover, the region is becoming increasingly integrated into global markets through new major pipelines and terminals. In particular, the emergence of liquified natural gas (LNG) plants and terminals is generating new and promising dynamics.

For the region to maintain and increase its production output, significant investments will be required to substitute decline in ageing brown fields and develop new untouched areas, both offshore and onshore. In order to maintain and further increase production, more upstream investments and new technologies will be required.

Despite these positive trends and its promising potential, some of the region underlying fundaments remain volatile. Scenarios on Eurasiaʼs future economic, institutional and political models range from economic and political instability and disintegration, to stable and thriving prosperity.

Nevertheless, the regionʼs hydrocarbon industries continue to attract investors. Furthermore, on the stock markets many Eurasian oil and gas companies remain relatively undervalued compared to their 'Western' counterparts, offering an interesting investment potential to those who are willing to take a risk.