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Page added on December 17, 2019
The Worrying Truth About Russia’s Oil Industry
The widespread adaptation of the combustion engine at the start of the 20th century propelled oil into becoming the world’s most important commodity. Resource-rich countries such as Russia were the beneficiaries of the new global energy order. Its predecessors, the Soviet Union and Imperial Russia, were already among the first and most important producers of oil in the late 19th and early 20th century. The country’s oil sector, however, is facing challenges to maintain its current level of production.
Although Russia ranks 8th in terms of proven oil reserves, it is the second-largest producer with 11.2 million barrels per day (mb/d). Only the U.S. produces more with on average 12 mb/d in 2019. While Russia’s proven reserves are almost 70 percent less than Saudi Arabia’s, it is on par when it comes to production. However, a majority of the country’s oil originates from brownfields in Western Siberia that have been in operation for decades. Therefore, Russian energy companies are applying new technologies to reduce decline rates.
Although Moscow has set its eyes on the Arctic to open new frontiers, the majority of its activities are still in Western Siberia. Therefore, the declining output is a major threat to the sustainability of the country’s oil production. Several state-owned energy companies have achieved significantly lower decline rates by applying techniques such as the lengthening of wellbores, side-tracking to restore wellbore integrity and the use of hydraulic fracturing.
Companies such as Yuganskneftegaz and Purneftegaz (both Rosneft subsidiaries) and Surgutneftegas have reduced the decline rates to about 2 percent compared to 5-6 percent on average across the country and 10-15 percent in Western Siberia.
Despite the difficulties Russia’s oil sector is facing in the long term, the country is expected to slightly increase its production capacity in the short term. When taking into account the commissioning of new fields and slower rates of depletion, the country could be producing 11.35 mb/d by the end of 2020. The extension of the OPEC+ agreement, however, could have a negative impact.
Looming threats
In the long run, much depends on the price of oil. Moscow hasn’t made a secret of its ambition to increase production in the Arctic. The harsh climate and lack of infrastructure are impediments to new energy projects in the region. It also increases the costs for investors. Therefore, high oil prices are a necessity to ensure profitability.
Furthermore, Moscow still faces sanctions from Western countries due to its meddling in Ukraine. This has reduced the availability of technological know-how which previously was provided by Western energy firms such as Shell, Exxon, and Total. Although Russian energy companies can drill independently in certain areas, they have not been able to replicate advanced drilling technologies for hard-to-reach oil deposits. Therefore, much will depend on whether these companies can develop the necessary know-how in the coming years or access Western technology due to the lifting of sanctions.
Lastly, Moscow is expanding tax incentives to improve the financial conditions for companies to boost their activities. According to the Russian Energy Ministry, in 2018 half of the country’s oil was produced under tax exemptions. Although it has proven to be necessary for some areas, Moscow is acting reservedly to implement similar measures in other regions because it reduces the state’s revenues.
The strategic calculation
Maintaining its position as one of the world’s biggest oil producers serves Moscow’s two goals. Primarily, the export of oil and gas boosts the state’s coffers. Approximately, 40 percent of Russia’s state budget is provided by the oil and gas sector. Also, the country’s strategic importance is strengthened and ‘a seat at the table’ is ensured by maintaining the position as one of the world’s largest energy producers. The OPEC+ agreement was made possible by the good relations between Riyadh and Moscow that is reflected in other areas of interests such as Syria and arms deals.
Fortunately for Russia, it possesses the world’s largest proven natural gas reserves which are seen as an important bridging fuel during the energy transition towards a more sustainable future. The country is already the world’s biggest exporter of natural gas with plans to significantly increase LNG production. Despite the headwinds, Moscow will remain an integral and important part of the global energy value chain in the foreseeable future.
96 Comments on "The Worrying Truth About Russia’s Oil Industry"
Anonymouse on Tue, 17th Dec 2019 4:17 pm
Fact check for CancerJuice.com’s Vanada Meliksetian:
The amerikan war-state, is not ‘producing’ anywhere near 12mpb of anything like oil. That stat is false on almost all metrics. The last time the uS produced anywhere near those numbers, was during WWII.
Reading the claptrap above, it almost sounds like these guys wish Russia’s oil were ‘better managed’ in some way. Like, I dont know, maybe if the uS! were put in charge of Russias oil and gas. I bet that would fix the ‘worrying’ state of Russia’s oil industry in a big hurry. If that were the case, and the uS has been actively working to make that a reality, rest assured, I bet oilyprice would be reporting headlines like…..
RUSSIAs Oil and Gas Industry is in Good Hand under the benevolent guidance and tutelage of Americks private, for-profit corporate Oil mega-corps.
The fact is, amerika relies heavily on war, violence AND gas revenues besides to pay its bills too. However, the uS severely under-taxes and subsidize its own oil corporations and end-users to an extent which almost criminally negligent. Aparrently, incentives for Russians producers are bad, but, the same type of corporate welfare for uS oil corporations is just fine. Ok. But hey, that makes total sense because the uS basically IS a criminal enterprise writ large, and few in the uS are more familiar with criminality than uS oil corporations.
Another fun fact: The uS also felt another nations oil industry was in a ‘worrying state’ as well. Place called ‘Iraq’, might have heard about it. Apparently, it too was suffering from a bad case of state-ownership, selling oil in Euros instead of uS toilet paper, and was cutting too many deals with countries and entities not under uS and Israli control. However, thanks to the expert guidance, and a helping hand from the pentagon (love ya guys) of the uS and its oil geniuses, Iraq’s oil production has never recovered. Nor has the Iraqi state, such as it sort-of exists these days, ever recovered control of its own oil resources. Nor will it ever if the uS has anything to say about the matter.
Russia should be so lucky…..
makati1 on Tue, 17th Dec 2019 4:58 pm
Anon, that is the best comment I have read here in years. The US is the world’s number one in lies and hypocrisy. Only the most brainwashed and/or stupid could not see it and weep. But then, most Amerikans are both. You describe the Amerika of today perfectly. Amerika needs to be put down and soon.
Larry Laffer on Tue, 17th Dec 2019 6:41 pm
“Russia is a gas station masquerading as a country.”
Davy on Tue, 17th Dec 2019 7:06 pm
For anyone that cares. Larry Laffer is me. It’s just another one of my mutipal personailties.
makati1 on Tue, 17th Dec 2019 7:07 pm
Larry, Oil is about 20% of Russia’s GDP.
Borrow and spend is about 70% of Amerika’s GDP.
Which is more secure and reliable? I choose oil, not debt.
US National Debt in 2018 was 104% of GDP.
“In 2018, the national debt of Russia amounted to about 14.61 percent of gross domestic product.”
https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287
https://www.google.com/search?client=firefox-b-d&q=Russian+national+debt+as+%25+of+GDP
People who live in glass houses should not cast stones.
Anonymouse on Tue, 17th Dec 2019 8:53 pm
Larry gaffer is a dumbass davy masquerading as……someone not davy.
Fail
Lawrence O'Shea on Tue, 17th Dec 2019 9:07 pm
Muzzie did London bridge two years ago with fake suicide vests to get rewards.
Muzzies did London bridge again with fake suicide vest ht whitey supertard david wood
Muzzies did Naval base then muzzies said they’re victims. Muzzies anti rape machine behind gate labeled “muzzies victims”. Muzzies slide victim card and got slammed by robotic arm into muzzie anti rape machine
Muzzies akbar sayeed used low English consistent with the way supremacist muzzies jerk use to refer to infidels. Whitey supertard John Brady died. Very tragic
Muzzies akbar will claim victims status
Larry Temple on Tue, 17th Dec 2019 9:10 pm
Muzzies akbar sayeed used low English consistent with the way supremacist muzzies jerk use to refer to infidels. Whitey supertard John Brady died. Very tragic
Muzzies akbar will claim victims status
Muzzie akbar is pioneer in introducing low English into higher education in the west
Dan Kafferty on Tue, 17th Dec 2019 10:00 pm
3 gorges dam is a huge nothing burger
Satellite images don’t lie
Nothing can be done
fwsmj on Tue, 17th Dec 2019 10:43 pm
Muzzie planned jihad u of new Mexico
Imagine America without muzzies if you can
Imagine all people but without muzzies
All muzzies in muzzies anti rape machine muzzies amputation machine muzzies hamster machines
dissident on Tue, 17th Dec 2019 10:44 pm
Actually oil and natural gas account for less than 8% of Russia’s GDP:
https://data.worldbank.org/indicator/NY.GDP.TOTL.RT.ZS
Resource rents include all other mineral extraction and forestry as well. Hater retards like the thankfully departed McShitStain ran around quipping retarded phrases like “Russia is an oil station posing as a country” because they were sore losers.
BTW, to the moron writing this article, look up the Bazhenov Formation. It is Russia’s Bakken and is huge. Russia has not even started extracting this oil. If you are going to wank yourself silly by including non-conventional oil production (e.g. Bakken) as the US production, then you have to do the same for Russia. You know, apples to oranges and all that. But that is asking too much from hater retards.
Dooma on Tue, 17th Dec 2019 10:52 pm
“Furthermore, Moscow still faces sanctions from Western countries due to its meddling in Ukraine.”
More Jew-Merican media propaganda.
It is not as if the United Snakes of America WANTS THE UKRAINE IN NATO SO THEY CAN SURROUND RUSSIA WITH MISSILE BATTERIES.
I would like to second Mak’s comment and say that that is one excellent post, Anonymouse.
Larry The Lounge Lizard on Tue, 17th Dec 2019 10:59 pm
“3 gorges dam is a huge nothing burger
Satellite images don’t lie”
Everything else in that satellite image is also bent out of shape, including the power lines between towers. The image itself is the nothingburger.
dumbass
JuanP is stupid on Wed, 18th Dec 2019 1:15 am
Stupid is on a roll his friends are proud of his creative stupid.
this is from stupid:
Larry The Lounge Lizard said “3 gorges dam is a huge nothing burger Satel…
fwsmj said Muzzie planned jihad u of new Mexico Imagine Ameri…
Dan Kafferty said 3 gorges dam is a huge nothing burger Satellite im…
full woke supremacist muzzies jerk said Newly discovered mass grave killed by muzzies Ht…
full woke supremacist muzzies jerk special news said Muzzie killing during (((supremetard))) season Th…
Well Done Anonymouse said You’re a good man, Anonymouse. I respect you…
fwsmj said Anonymouse on Tue, 17th Dec 2019 9:30 pm Supertard…
REAL Green said Oops, sorry everybody for my other self lied earli…
Anonymouse said Don’t forget, he also has a ‘doomstead…
Davy@liar/hypocrite/fraud.com said DavySkum still socking and committing ID theft fro…
majece majece on Wed, 18th Dec 2019 8:13 am
I can tell you more about hiring professional dissertation writers. On https://dissertation-center.co.uk/dissertation-riters-for-hire you can find more info about it
JuanP on Wed, 18th Dec 2019 12:16 pm
I am very concerned for the Russian people. They have more land, water, food, energy, nuclear bombs, and oceans than they need. The situation is very concerning, particularly because their population has been essentially stable for decades, with minor ups and downs, but averaging close to zero population growth, which is ideal. Plus, now they also have Crimea and its people to worry about! They are going to need like supersonic missiles or hypersonic nuclear gliders to protect themselves and attack their enemies!
JuanP is stupid on Wed, 18th Dec 2019 12:31 pm
You are just stupid, juanPee. You care about nobody but yourself. You are a disgusting example of a human being in every way. I bet you are an ugly little shit too with a short guy complex. I hope the worst for you CUNTFACE.
THIS IS STUPID:
Davy said I agree with JuanP. I hate this stupid country. Tr…
Davy said STFU JuanP is stupid. Do everyone a favor and put…
JuanP said I am very concerned for the Russian people. They h…
Davy on Wed, 18th Dec 2019 1:01 pm
STFU JuanP is stupid. Do us all a favor and put a gun to yer head.
dumbass
Davy on Wed, 18th Dec 2019 1:11 pm
I have a huge amount of time and energy invested in the collapse of the USA. I’d hate to see my lifelong goals go to waste.
Go Trump!
fwsmj on Wed, 18th Dec 2019 1:17 pm
Davy on Wed, 18th Dec 2019 1:11 pm
Above someone who is owner of vast inventory of lib urns
Not supertard obv.
Davy on Wed, 18th Dec 2019 1:19 pm
You can STFU too fwsmj.
idiot
Cloggie on Wed, 18th Dec 2019 2:17 pm
Today’s news wrap up:
https://vdare.com/posts/it-s-official-diversity-means-just-fewer-white-people-wall-street-journal-demands-national-hockey-league-nhl-increase-non-white-players-or-die
It’s Official—Diversity Means Just Fewer White People: WALL STREET JOURNAL Demands National Hockey League (NHL) Increase Non-White Players or Die
The National Basketball Association (NBA) is 80.7 percent black.
The National Football League (NFL) is 70.1 percent People of Color—26.8 percent white.
The National Hockey League (NHL) is roughly 90 percent white and under assault by the elite corporate press for being too white, a charge never leveled at the NBA or the NFL for their paucity of white athletes.
https://www.dailymail.co.uk/news/article-7806117/Four-men-guilty-sexually-abusing-rape-victim-12.html
“Four men are guilty of sexually abusing rape victim, 12, who was ‘passed around like a piece of meat’ by Asian grooming gang”
After the downfall of the shithole empire at the hands of Europeans, Russians, Chinese and US white nationalists, these muzzies will become practice material to rediscover your inner Roman. They will be passed around like pieces of meat.
JuanP is stupid on Wed, 18th Dec 2019 2:26 pm
more stupidity
This from stupid:
Davy said You can STFU too fwsmj. idiot
fwsmj said Davy on Wed, 18th Dec 2019 1:11 pm Above someone w…
Davy said I have a huge amount of time and energy invested i…
Davy said STFU JuanP is stupid. Do us all a favor and put a…
Davy said ’Trump has made us weak’ https://tinyurl.com/wnls4…
Davy on Wed, 18th Dec 2019 2:31 pm
Get lost JuanP is stupid.
Retard
Cloggie on Wed, 18th Dec 2019 2:33 pm
IBM present promising cobalt-free battery technology:
https://deepresource.wordpress.com/2019/12/18/ibm-present-cobalt-free-battery-technology/
JuanP is stupid on Wed, 18th Dec 2019 2:36 pm
No. You get lost Davy
stupid
REAL Green on Wed, 18th Dec 2019 2:41 pm
JaunP is stupid is write Davy. Were a retard.
Davy on Wed, 18th Dec 2019 2:50 pm
But JuanP is stupid is me REAL Green
REAL Green on Wed, 18th Dec 2019 2:52 pm
That’s write Davy
Go Trump! Make America weak.
JuanP on Thu, 19th Dec 2019 10:19 am
Trump 2020! Gabbard 2020!
I AM THE MOB on Fri, 20th Dec 2019 5:26 am
Wait till the global oil shortage hits.
Then the global uprising begins..
Message to the 1%.
You can run but you can’t hide.
Davy on Fri, 20th Dec 2019 5:32 am
“Message to the 1%. You can run but you can’t hide.”
MOBster does that mean most of the Democratic party higher ups which includes probably all of congress? The bi-coastal blue areas will be overrun too. These places are the center of the 1%’ers. So you uprising dreamers are going to kill your leadership? Sounds like a mess to me. I think people like you are going to be shot down like vermin and thrown in large graves.
Davy on Fri, 20th Dec 2019 5:51 am
“ I think people like you are going to be shot down like vermin and thrown in large graves.”
CW2 Style
REAL Green on Fri, 20th Dec 2019 5:51 am
They should make mention somewhere about the carbon trap and path dependencies. The reason they don’t would be they admit failure.
“7 Challenges for Global Energy Transformation — Rocky Mountain Institute Report”
https://tinyurl.com/v69tn3h clean technica
https://tinyurl.com/sjm3wrj image
https://tinyurl.com/stj8uaq image
“Our analysis and experience suggest that there is another way to get to the goal. This is a path of emergence, sparked by bold and decisive actions on the part of citizens, corporations, philanthropic institutions, subnational leaders, regulators, and policymakers. Meaningful progress to address the climate crisis can emerge quickly from an upwelling of actions taken by leading institutions in the next two to three years—provided these institutions have the will and the capacity to work together in new ways.” RMI recommends taking a systems approach, a willing collaborative action on the part of industry, government, civil society, and philanthropy. “Because action on these challenges will be strongly synergistic, having a view of the whole can ensure we work more effectively…A press release about the report highlights a handful of core areas of importance: Harnessing leapfrog improvements in urban systems and infrastructure to transition to secure, resilient and clean energy communities. This can deliver $2.8 trillion returns by 2030 and $7 trillion by 2050, annually, while reducing emissions by up to 90% over the same time frame. Greater electrification of efficient buildings and transportation systems offers primary pathways for cities to reach these goals and can be accelerated by stronger global networks of cities to support innovation and share best practices. Leveraging state-of-the-art data collection and analysis systems to improve the transparency, accountability and actionability of climate and energy data. A revolutionary “big bang” of innovations can occur by creating an integrated, open-source, global climate data system that puts powerful information in the hands of key actors. Redesigning industry to accelerate emissions reductions in heavy industry, long-haul transportation and aviation to set these sectors on decarbonization pathways. Climate-aligned financial sector commitments, plus policy incentives and market shifts that reward low-carbon solutions, are urgently needed. Accelerating the retirement of fossil fuel assets and increasing investment in clean assets via new tools and methods to manage risk, ensure access to clean energy, reduce transition costs and mitigate negative impacts on affected industries and communities in order to maximize net value creation from global clean energy transformation.”
JuanP is stupid on Fri, 20th Dec 2019 5:55 am
I was wondering when you were going to finally get up stupid
this is from stupid
Davy said “ I think people like you are going to be shot dow…
JuanP is stupid on Fri, 20th Dec 2019 6:00 am
“Majority of Americans Say U.S. Is Nearing Civil War”
https://tinyurl.com/wy9kmjf we’re fucked
“Unfortunately, they’re right”
“Georgetown University poll released on October 23 reports that 67 percent of Americans believe that America is “on the edge of civil war.” The partisan antipathy in the nation has reached an all-time high and, in the face of the upcoming 2020 presidential elections, will only get worse”
REAL Green on Fri, 20th Dec 2019 6:01 am
This has a great animation on wind power. European chauvinists might not like it though.
“Fascinating animation: Watch how wind generation has grown country-by-country over the past 32 years”
https://tinyurl.com/rnz3vvh renewable energy world
Cloggie on Fri, 20th Dec 2019 9:31 am
Windpower 2018
China 217 (1350m)
EU 189 (500m)
US 96 (330m)
Note that the EU is FAR more energy efficient than the US and China.
https://images.app.goo.gl/MaYRPoijCT8GBe7o6
Duncan Idaho on Fri, 20th Dec 2019 10:08 am
“Another weak regional manufacturing report.”
https://www.calculatedriskblog.com/2019/12/kansas-city-fed-tenth-district.html
Kansas City Fed: “Tenth District Manufacturing Activity Decreased Further in December”
Hint: The Fat Boy has been bankrupt 6 times.
Duncan Idaho on Fri, 20th Dec 2019 10:47 am
Even too crazy for our Repug friends:
Spokane, Washington — A Washington state lawmaker took part in “domestic terrorism” against the United States during a 2016 standoff at a wildlife refuge in Oregon and trained young people to fight a “holy war,” according to an investigative report released Thursday.
The report prepared for the state Legislature said Representative Matt Shea, a Republican from Spokane Valley in eastern Washington, traveled throughout the West meeting with far-right extremist groups, condoned intimidating opponents and promoted militia training by the Patriot Movement for possible armed conflict with law enforcement.
Shea was suspended from the state House Republican Caucus Thursday evening, advised by members of both parties to resign and will be removed from his committee assignments.
Duncan Idaho on Fri, 20th Dec 2019 10:55 am
From NASA Administrator Jim Bridenstine was this tweet:
“Because #Starliner believed it was in an orbital insertion burn (or that the burn was complete), the dead bands were reduced and the spacecraft burned more fuel than anticipated to maintain precise control. This precluded @Space_Station rendezvous.
”
“He is being nice about saying that Boeing’s attempt to go to the Space Station was a failure”
this is JuanP stupid on Fri, 20th Dec 2019 10:56 am
Cloggie on Fri, 20th Dec 2019 9:31 am
Windpower 2018
China 2
this is bazarre insane JuanP on Fri, 20th Dec 2019 12:36 pm
fwsmj on Tue, 17th Dec 2019 10:43 pm
Muzzie planned jihad u of new Mexico
Cloggie on Fri, 20th Dec 2019 10:50 pm
We need a total trade war against the US!
https://www.rt.com/business/476541-nordstream-sanctions-bill-pipeline/
“Big bully at work: Firm laying Nord Stream 2 pipeline halts all ‘activities’ faced with ‘crushing sanctions’ by US”
“Allseas, a Swiss-Dutch company laying the Nord Stream 2 pipeline off the Danish coast, has announced it’s suspending its work and will pull out from the project after being faced with an avalanche of sanctions by the US.”
Total boycott of US-products, no deal Brexit, U-turn towards Eurasia. Europa has only one real enemy and that is ZOG.
more lonely insanity JuanP on Fri, 20th Dec 2019 10:55 pm
Cloggie on Fri, 20th Dec 2019 10:50 pm
We need a total trade war against the US!
Cloggie on Fri, 20th Dec 2019 11:02 pm
“Boris Johnson puts himself on a collision course with the EU as he rules out following Brussels rules after Brexit”
https://www.dailymail.co.uk/news/article-7815879/EU-braced-harder-Brexit-Boris-Johnson-rules-following-Brussels-rules.html
A deal is not in the EU’s interest, let them bleed.
China and Russia have offered the EU an alliance, the EU should accept this offer with both hands, because it is a winning alliance.
– first: EU, Russia and China should withdraw from the UN, IMF, WB, etc.
– second: crminalize the use of dollar and GBP throughout Eurasia
– third: blockade of Britain
– fourth: stationing of Russian nuclear missiles in western Europe
Davy on Fri, 20th Dec 2019 11:43 pm
“China’s Diplomatic Ties Surge In 2019, Overtaking US”
https://tinyurl.com/tb95ocs zero hedge
“With a growing number of nations in the world of the belief that China is now the world’s foremost superpower, America’s hegemonic hold on the world is slipping further. In 2019, China was the country with the most diplomatic missions, overtaking the U.S..”
makati1 on Fri, 20th Dec 2019 11:57 pm
China is number one today. all USMSM lies are just that.
China GDP PPP 2018 : $27.3 Trillion
US GDP PPP: $22.7 Trillion
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)
Even if you use the lowest numbers, there is still a ~$3 Trillion gap between China and the US. PPP is the only real way to compare economies. What the local $1 will buy.
As I said, $2 will buy me a haircut in the Philippines vs $15 in the US. $15, a doctor visit vs $?? in the US. Etc.
usual lonely bazzare JuanP on Sat, 21st Dec 2019 12:19 am
makati1 on Fri, 20th Dec 2019 11:57 pm
China is number one today. all USMSM lies are just that.
China GDP PPP 2018 : $27.3 Trillion
REAL Green on Sat, 21st Dec 2019 12:24 am
Can we please go to sleep now Davy? This hole JuanP thang of ours is gettin to be weigh to much.