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ARCTIC POPULATIONS Indigenous people from Alaska to Canada to Siberia rely on fish, polar bears, seals and caribou for food, clothing and trade.  As warming imperils these animals, it also threatens a way of life that has been unchanged for centuries...

Author: /time Magazine | Title: Meltdown! | 11/22/2004 | See Source »

...pressure from investors to find new reserves--now. With near record crude prices and Iraq in turmoil, Russia's vast untapped wealth of oil and gas has never looked more attractive. To be sure, there are production challenges: many of the reserves are located in remote locations deep in Siberia or above the Arctic Circle, and transport depends on clunky Soviet-era railways and pipelines whose leaks are frequently decried by Greenpeace and other environmental activists. Nonetheless, the Western oil companies are eager to export Russia's oil reserves, which are conservatively estimated at 70 billion bbl.--more than double...

Author: /time Magazine | Title: Russia: Power Play | 11/22/2004 | See Source »

...companies are piling in. In addition to the Conoco deal, Britain's BP is investing a whopping $7 billion in a joint venture that controls huge fields in western Siberia, and in September France's Total agreed to pay $1 billion for a 25% stake in Novatek, Russia's largest private gas producer. Many other companies, including ChevronTexaco, PetroCanada and Norway's Statoil, are trying to get a foothold. All three recently signed preliminary agreements to work with state-controlled Gazprom, an oil-and-gas behemoth in which Germany power company E.On holds a 6% stake. There is widespread speculation...

Author: /time Magazine | Title: Russia: Power Play | 11/22/2004 | See Source »

...merging with Russia's seventh largest oil company, state-owned Rosneft, and Alexei Miller, Gazprom's chief executive, has signaled his interest in another oil producer, Zarubezhneft. Most dramatically, Gazprom has emerged as the best-positioned candidate to acquire the company that forms the core of Yukos--a Siberia-based corporation called Yugansk Oil & Gas--if the government auctions it off. Yukos says a forced sale of Yugansk, which reportedly may be priced way below market value, would violate Russian statutes that stipulate that noncore assets be sold first in the event of tax claims. "This has nothing...

Author: /time Magazine | Title: Russia: Power Play | 11/22/2004 | See Source »

...collapse of the Soviet Union was accompanied by a slide in Russian oil production, from a peak of almost 11 million bbl. per day in 1987 to just 6 million in 1996. Yukos blazed the trail--and helped reverse the oil slump--by investing heavily in existing fields in Siberia, bringing in Western technology and dozens of American and other experienced foreign managers. Partnering with Schlumberger, a U.S.-based oil-field-services company, Yukos became the biggest Russian player, accounting for 20% of total production. At a presentation at a Lehman Bros. energy conference a month before Khodorkovsky was arrested...

Author: /time Magazine | Title: Russia: Power Play | 11/22/2004 | See Source »

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