Gazprom's Empire at the End of the Earth

The priest in the seat next to me is gripping a Bible on his lap as our helicopter flies north over desolation. A man could die out there, in the hard Arctic that passes by the portholes. And yet our traveling companions don’t appear disturbed. The roughnecks of the gas industry drowse in their parkas to the restful cadence of the helicopter blades clipping overhead. These men carry another faith. They are heading toward its tangible confirmation, Bovanenkovo, one of the largest gas fields the world has ever known.

The development of Bovanenkovo is critical to the fortunes of Gazprom—the most valuable company in Russia, the world’s largest producer of natural gas, and an indispensable instrument of Prime Minister Vladimir Putin’s power. Gazprom accounts for 15 percent to 20 percent of global natural gas production. In addition to its deliveries across the former Soviet Union, it supplies a quarter of Europe’s natural gas. The company has posted record earnings the last two years: $35.2 billion in 2010 and an estimated $42.2 billion in 2011. Gazprom’s mammoth tax payments bolster the Russian economy, allowing the Kremlin to dole out subsidies and keep a lid on popular discontent.