Heroes of Ukraine

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

Saturday, 15 December 11:36 (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 »
 

OPEC and Saudis Are Planning To Back Oil Prices

International experts and governments have been closely watching the drama going on in the international market of crude oil. According to The Wall Street Journal, Saudi Arabia is going to quit the overproduction of crude oil for the sake of preventing oil prices from going down any further and, if possible, backing their new growth.
Publication date: 05 December 11:00 AM

Investing in World's Most Secure and Profitable Stocks in NordFX

Publication date: 02 December 09:32 AM

Golden Medium: Russia Isn't Concerned About Decreasing Oil Prices

Market Leader reports that the global market of rude oil has been seen a prolonged downtrend after a pretty strong rally seen over a couple of months in a row. Not so long ago, a barrel of Brent oil used to cost 86 dollars. At this point, it costs just 70 dollars. Still, the Russian authorities don't seem to be concerned about this price drop at all. Experts say the see no reason to worry about the situation.
Publication date: 12 November 11:57 AM

Apple's Market Cap Drops Below 1 Trillion Dollars

Apple's market capitalization has dropped below 1 trillion dollars. Market Leader reports that this summer, Apple became the world's first company to reach such a stunning result - market cap over 1 trillion dollars. Apparently, all of that became possible due to higher Apple stock prices.
Publication date: 07 November 02:18 AM

Gold Keeps Losing Its Safe-Haven Asset Status

The amount of political and economic crises keeps on growing in the world but gold is still going down in value. International experts have been trying to figure out the reasons why contemporary investors are investing in other assets instead of gold as it used to be ages. It's interesting to note that they are mostly investing in dollar assets.

Publication date: 25 October 11:52 AM

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