Tsirelson, M: Gazprom‘s Reliability as a Gas Supplier

The energy question is a crucial one in the European Union (EU) of 27 member states. As the population continues to grow (479 million in 2007) also the gas demand and the gas consumption grows. While the demand and the consumption have never been as large as present, the EU is running out of gas reserves and also its gas production is decreasing. Therefore, 35% of gas is being imported (statistics 2006). The Russian energy giant Gazprom remains EU‘s main gas supplier as it has the worlds‘ largest reserves and an extended gas transportation system to Western Europe. Quarrels with former Soviet countries over gas prices have caused a stall in gas supplies of some EU countries, amid a harsh winter in 2006. In a time when the reliance on gas from Russia is increasing, the stability and security of energy sources is a key element in the EU. But is Gazprom able to guarantee these issues? Or should the EU countries focus more on diversification of energy supplies, to be less dependent on Gazprom‘s gas? This work gives a clear insight in all these questions.