Kemp: The Big One - Russia's Bazhenov Shale

The immediate aim would be to compel Russia to heed Western concerns over Ukraine. The longer-term objective would be to deny Russia access to the expertise - especially in complex horizontal drilling, seismic and oilfield visualisation - needed to develop shale deposits, entrenching U.S. superiority in shale energy.

So far, however, Western companies have lowered their profile and successfully lobbied against the imposition of broader sanctions on investing in Russia's oil and gas sector.

The stakes are just too big. Bazhenov is one of the most promising oil and gas plays anywhere in the world and a key component of future supplies.

With Western oil companies still largely shut out or heavily restricted from producing oil in Saudi Arabia, Iran and Venezuela, and struggling to find low-cost projects in other areas, Bazhenov is simply too important to lose.

(Editing by Dale Hudson)

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