Thursday, March 4, 2010

More on Gazprom...

...and then I'll stop.  Before then, I wanted to share an interesting editorial I read on the Russian energy giant Gazprom's woes.

Having touched on Gazprom twice in a week, I'm starting to feel like I'm harping on the company a bit (especially for a site looking at LA/TX), but it represents a really interesting story to me. Gazprom is the Old Guard in so many ways.  It is a vestige of the post-Soviet world:  it had so much power, but it was unprepared for changes caused by the market.  It became a giant machine that can't see its own feet.  Now it will have to scramble to stay relevant.

The energy industry, especially the natural gas business, is changing rapidly in front of our eyes.  How these changes erode the power of the lead footed giants like Gazprom is really fascinating.  As the editorial points out, it can survive and thrive, but to do so it will have to change significantly. 

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