Russia: Oil Production Declines For 4th Straight Month

The country’s oil production fell for a fourth straight month in April, confirming pessimistic forecasts for the year, while exports rose on the back of improved weather.

Industry and Energy Ministry data released Sunday showed that production stood at 9.72 million barrels per day, down from 9.76 million bpd in March and more than 2 percent lower compared with the post-Soviet high of 9.93 million bpd in October.
In absolute figures, March production was more than 6 million barrels — the size of six large tankers — down from October.

Since October, oil production in Russia has been varying between decline and stagnation, prompting many analysts to revise down their production forecasts for 2008. A fall in output this year would come after a decade during which production by the world’s second-largest oil exporter soared by more than half from the post-Soviet low of 6 million bpd.

Producers mainly blame heavy taxation amid rising costs for the production decline.

The authorities still expect production to grow by around 1 percent this year after an increase of 2.3 percent in 2007 and much bigger spikes in previous years, including a record 11 percent in 2003.

Moscow Times