TRANSIT CONDITIONS OF PETROLEUM IN DIFFERENT REGIONS AND COUNTRIES   by Anis

Transit of oil and such oil as fuel oil, diesel fuel and gasoline in the modern world is a complex integrated system, the formation of which has been and is influenced by many factors. Among the most significant must recognize the geopolitical , economic and environmental . The concretization of these factors lead us to such concepts as energy security, political and economic relations with countries of transit , route optimization and strategy of internal development , as well as socio -ecological constraints. They are all in varying degrees shaped patterns of changes of the transit of petroleum products. Now you can distinguish the following modes of transportation of crude oil and petroleum products: pipes , tankers , rail and road transport. In Russia, the main transportation of oil fall to the share of pipeline transport , and petroleum products – the share of rail . Outside the Russian oil fall through the world’s largest pipeline system, as well as through seaports .
General conditions for the transit of oil products
The general conditions of transit include the direction and distance of transit routes , the method of transportation and transit pricing participants . The method of transit is assessed by comparing cost-effectiveness, and here the primacy of the restraint system of pipelines as the price of oil transportation by rail is more than 30 % of the final price, while the cost of transportation on the pipeline – about 10-15%. However, the extensive railway lines on the background of tight -binding system of pipelines to oil refineries (refinery ) provides the dominant position of rail transport in the domestic market of transit services. There is no doubt that some of the country through which pass transit routes, skillfully using their geographical position when negotiating the price of transit . Therefore, pricing , and even more unauthorized sampling of petroleum products, as was recently the case with Belarus, seriously affect the environment and, above all , the intensity of transit.

The direction of transit routes represent a mixture of economic viability and political strategy. At the moment, is a traditional Central European focus: petroleum products transported by two routes : the north – in Poland and Germany, and south – to refineries Czech Republic, Slovakia , Hungary, Croatia and Yugoslavia. Also actively used the Black Sea ports : Tuapse and Novorossiysk. This direction ( Caspian-Black Sea -Mediterranean ) applies and the transit of petroleum products within the Russian territory from Azerbaijan, Turkmenistan and Kazakhstan. Northbound Druzhba pipeline goes to the Baltic countries and is regarded as the scope of the sharing of Russia – to transport its oil , the CIS countries – for a possible increase in transit through the territory of Russia.

Pipeline
Pipeline system in our country largely defined and established in the time of the USSR. Suffice it to recall the giant complex pipeline “Druzhba” , linking the major at the time the oil fields to refineries and seaports in the Middle and Far Abroad . Now Russia has the longest pipeline system in the world , whose length is 48 708 km ( May 2007 ). This giant system is controlled by Transneft , the principal owner of which at present remains the state. Pipelines stretched across the country from oil-producing regions such as Timan- Pechora, to seaports and oil refineries at the end point of transit routes , such as Poland or Slovakia. Conditions of transit of petroleum products through pipelines are made up of transit tariffs – if transit passes through the territory of Russia, the prices are regulated Transnefteprodukt , a subsidiary of Transneft , if the territory of other countries, tariffs are set by agreement with these countries. Scheme of such agreements include contracts for the transportation of oil products concluded between buyers and sellers and Transnefteproduct . On the whole pipeline system provides transit of oil products in western and north -westerly direction : through Ukraine and Belarus , the Latvian port of Ventspils , the St. Petersburg port on the Baltic Pipeline System (BPS ) through the port of Primorsk , in a southerly direction : to the Black Sea ports and through the Caspian Pipeline Consortium (CPC).

Rail transit of petroleum products
Transporting oil by rail mostly serves domestic needs . Also, liquid tank ply the rails where you want to transfer oil from the end- point oil pipeline systems for oil refineries, as is the case with transit through Ukraine for exports of petroleum products in third countries. The main advantage of rail transit is its capacity , mobility, and extensive network . The main drawback , as already stated , recognizes the high cost of transit tariffs of railway transport in comparison with the pipeline.

Shipping
Maritime transit of oil products is underdeveloped in Russia , but is now recognized as one of the main development priorities in the field of transportation of petroleum products. Russia is planning to expand the use of Black Sea ports as a base for the transit of oil through the straits. Completion of the BTS has established certain prerequisites for the increase in maritime transit through the Baltic Sea . Terms of maritime transit construction costs are determined by the tanker fleet , and in that area experts say the decline , and the cost of freight vessels , which , on the contrary , in recent years has been increasing steadily . In general, the marine transit – a good possibility of political and economic diversification of oil transportation

About the Author

I am CFO of a group of companies Hozpromtorg, business profile sale of petroleum products
Transition Networks BBWF 2011 with Connect Data.mov