PROSPECTS OF «SHALE REVOLUTION» AND RUSSIAN-CHINESE ENERGY DIALOGUE

The article touches upon the analysis of the prospects of the “shale revolution” at the world gas market and the assessment of influence that could be exerted on the development of the Russian-Chinese energy dialogue by the growing production of this type of fuel. The author examines the advantages and disadvantages of shale gas in comparison with traditional natural gas, considering the practicability of exploring such energy resource for Russia and China. Shale gas may in the future provide significant reserves of natural gas. This will lead to a significant change in the elasticity of demand in all regional markets, including the Asian one. However, the supply of shale gas from the US to Eurasia expected in a few years will not endanger the supply of pipeline gas from Russia to China. Russian gas is more competitive than the American one due to the fact that the costs of production and transportation of natural gas from Russia is much lower than the costs for shale gas from the US. The most important difference is that natural gas unlike shale is environmentally friendly. The potential "shale revolution" will not make serious adjustments in the Russian-Chinese energy dialogue. This is due to a number of circumstances. First, it is important for China to develop its economy based on environmentally friendly fuel. Secondly, from the point of view of geography and convenience of transit of energy resources Russia is an ideal partner for China. Moreover, Moscow has repeatedly proven to be reliable in carrying out commitments on oil and gas contracts.

energy diplomacy, foreign policy, Russia, China, shale gas, fracking, Russian-Chinese energy dialogue, economic security, fuel and energy complex, strategic reserves