Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Saturday, 20 October 05:59 (GMT -05:00)



Stock and commodities markets

Unfavorable Prospects of Russian Oil Production


Despite a range of negative conditions, the Russian oil industry increased its oil production all the way up to another record in 2016. Still, a lot of experts assume that this tendency is likely to reverse in the near future. If that’s the case, the oil production volume in Russia will start dropping.

 

 

 

 
All in all, Russia produced 540 million barrels of crude oil in 2016. This was 11,2 million barrels of crude oil a day, or a new production record for Russia. Even relatively low oil prices didn’t prevent the local oil companies from producing that much oil. In the meantime, many experts predict that the Russian oil production is doomed to start shrinking in the coming months.
 
Yet, the experts’ predictions now seem to be starting to get real as they are confirmed by the stats coming from the corresponding Russian agencies. Any production and export cuts may become cause problems for the Russian economy. You see, for many years, oil export has been the bread and butter of the Russian economy, and that’s why the Russian government got used to it. Some high-ranking Russian politicians are still feeding the public with an excessive amount of anti-crisis optimism taken out of thin air.
 
On March 27, the Russian Minister of Natural Resources said that he was surprised with all those spookies you can find online and offline about the doomsday scenarios for the Russian oil industry. According to him, the government is still financing in the exploration and production of fossil fuels while innovating the related industries. He is sure that even in 30 years, Russia’s oil and natural gas fields will be plenty of resources to extract and export.
 
However, making long-term production forecasts is not something reliable. To prove it, let’s remember the recent U.S. shale boom. Up until the mid 2000s, many experts predicted the end of the oil era in the USA. But then the shale oil was discovered and they learned how to extract it, which made the experts revise their forecasts.
 
As for the current tendencies in the Russian oil industry, they are not that optimistic. Mining companies often overestimate the discovered oil fields. However, even the experts from Rosnedr calculated that it’s impossible to sustain the same level of oil production after 2020.
 
Officially, Russia is one of the leading countries in terms of oil reserves. At this point, Russia is said to have over 15 billion tons of crude oil. This means that Russia still can produce crude oil at the same level for the next 30 years. The thing is that more and more oil fields contain crude oil that’s hard to extract. At the current prices, extracting such oil is not a profitable business at best. At this point, most oil fields are at the stage of declining production.
 

 

Only new oil fields are seeing an increase in oil production. Even though some of the biggest Russian oil companies are still increasing their production, the overall tendency is already starting to show and over the next couple of years it is expected to become clearer.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

USA Leaves China Without Crude Oil, Russia Is Ready To Compensate

The trade war between the United States and China is still underway. Earlier this month, America made another attempt to undermine the Chinese economy. The thing is, that up until recently, America used to be one of the biggest exporters of crude oil to China. In summer, the U.S. export of crude oil to China used to be equal to 10,5 million barrels a month. At this point, America has almost suspended the export of crude oil to China. Last month American oil companies shipped as little as 600K barrels, with no oil shipping planned for this month.

Publication date: 17 October 10:29 AM

Evgeniy Filichkin: FortFC Launches pre-ICO

While skeptics armed with political axioms, and complicated math formulas, are trying to persuade the world that sooner or later, the cryptomarket industry is doomed to exhaust its potential at some point in the future, the cryptomarket itself is becoming a part of the global economy.

Publication date: 03 October 09:10 AM

Trump is helpless: oil prices keep going up

Oil prices keep going up. Brent oil has just exceeded $83/b. Obviously, Donal Trump's attempts to urge the OPEC to increase their oil production have filed so far. For those of you who don't know, not so long ago Donald Trump threatened the OPEC in general and Middle-Eastern oil producers in particular with consequences if they refuse to start increasing their oil production to dump international oil prices as soon as possible. However, those threats seem to have had no impact on the OPEC and the prices are still going up. 

Publication date: 01 October 10:15 AM

Trump Will Take Revenge on Middle East because of Crude Oils

Donald Trump threated some Middle Eastern oil producers to take revenge on them because of crude oil prices. This is not the first time the American president is criticizing the Middle East in Twitter for being reluctant to contribute to lower oil prices. 

Publication date: 24 September 10:02 AM

China declares crude oil war on USA

Beijing is now considering the opportunity to cut down on the export of crude oil from the United States in response to Washington's decision to raise the import duties on Chinese products. The energy war between the USa and China may also affect Russia.

Publication date: 11 September 11:55 AM

China's dependence on crude oil increases fast

Over the last few years, China has been getting more and more dependent on the import of crude oil and some other energy carriers. Most of those oil imports are of Russian origin. the thing is that CHina's domestic oil and natural gas production has been contracting over the last few years while the country's production capacities have increased and are now in high demand of more energy.

Publication date: 11 September 10:40 AM

Trump Is Close to His Goal - Oil at $50/b

According to Finanz, President Trump is close to making oil prices drop down to $50/b like never before. Last week was bearish for the global market of crude oil. This happened mainly due to the agreement between the U.S. president and the King of Saudi Arabia.

Publication date: 23 August 11:36 AM

Investment Banks Raise Their Oil Forecasts

The world's biggest investment banks have raised their oil forecasts again, for the 10th month in a row, The Wall Street Journal reports. 

Publication date: 02 August 12:00 PM

Oil Prices May Skyrocket to $400/b if Iran Blocks the Strait of Hormuz

Blocking the Strait of Hormuz will inevitably trigger a global energy crisis while pushing oil prices to unseen heights, maybe even all the way up to $400/b. This is what the experts interviewed by PRIME think about the situation.

Publication date: 19 July 09:45 AM

Higher OPEC+ Production Quotas Won’t Raise Oil Prices, Kudrin Says

Chairman of the Russian Accounts Chamber Alexei Kudrin assumes that the OPEC+ participants’ decision to increase the daily oil production quotas won’t affect international oil prices.

Publication date: 16 July 09:58 AM