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Press ReleaseFrontier Strategy Group Senior Vice President Stephen Bailey Discusses Russian-Iranian Cooperation on Natural Gas on ROBTv CAMBRIDGE, Mass. – (BUSINESS WIRE) – February 7, 2007 – Frontier Strategy Group Senior Vice President and natural resources expert Stephen Bailey discussed Russian-Iranian cooperation on natural gas and the possible development of an OPEC-like natural gas cartel on ROBTv's "SqueezePlay." Mr. Bailey discussed the likelihood of Russia and Iran developing an OPEC-like cartel that could be used to manipulate natural gas prices. "Structural factors such as the 10-20 year length of current gas contracts, Russia's unwillingness to submit to production controls, and the regional nature of gas markets as opposed to the global oil market make the development of such a cartel unlikely in the near future," Mr. Bailey noted. "Over the longer-term, the practicality of such a cartel might increase as liquid natural gas technology creates a more fluid and global market for natural gas by allowing gas to be more easily transported over long distances without the need for traditional pipeline infrastructure." Mr. Bailey pointed out that a greater short-term concern should be current discussions between Russia and Algeria to cooperate on their shipments of gas to Western Europe. Mr. Bailey noted that "the Western Europeans have cause for concern given the fact that Algeria and Russia, which combined account for 35% of the Western European gas market, have the market presence and leverage to significantly affect the price of European natural gas." Mr. Bailey also discussed the short-term geopolitical ramifications of Russian-Iranian gas cooperation, even if such cooperation falls short of a full-blown cartel. "Despite the unlikelihood of a full-blown natural gas cartel, any form of natural gas cooperation between Russia and Iran does have significant geopolitical ramifications as the West seeks to deter Iran from developing nuclear weapons by persuading Russia and the other members of the UN Security Council to agree to significant economic sanctions if Iran continues its nuclear program." A webcast of Mr. Bailey's presentation can be accessed at: http://www.robtv.com/shows/past_archive.tv?day=tue About Stephen BaileyStephen Bailey is a Senior Vice President at Frontier Strategy Group and heads the Americas Mining & Energy practice at the Frontier Strategy Group. About Frontier Strategy GroupFrontier Strategy Group is a global consulting and advisory firm focused on the natural resources industries. Key practices include country-entry and growth strategies, M&A advisory, political risk assessments and permitting assessments. The firm is based in Cambridge, Massachusetts, and has offices in New York and Washington DC. Media Contact:
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