ABSTRACT

The largest energy companies such as Chevron, ConocoPhillips, ExxonMobil and Shell, signs production-sharing agreements and starts to invest billions of dollars in Russia's energy sector. The growth of U.S-Russia trade and investment during this period is explained by high economic potential and low geopolitical tensions. Western companies came to Russia to invest in many areas of the economy, including large oil and natural gas exploration projects. In mid of 1990s, major international companies signed PSAs, creating more than one hundred joint ventures in the Russian energy sector. The ESPO pipeline reduces the transportation distance by ocean tankers between Russia and the United States. Similar to Chevron and ExxonMobil, ConocoPhillips also emphasizes its strong adherence to Russia's environmental and safety regulations in oil and natural gas production processes aimed at zero-incident operation of hazardous oil and gas production facilities in the extreme climatic conditions of the North. Matlock emphasizes Russia as defeated enemy in the Cold War detrimental to U.S-Russia cooperation.