Due to sanctions Russia will be forced to cut oil production in the coming years – report «SKOLKOVO»

The Russian company «Rosneft» and «Gazprom oil» because of sanctions in the long term will begin to reduce production. This follows from the March report of the energy centre SKOLKOVO.

It is noted that oil production in Russia from 2012 to 2016 increased by 6% to 548 million tons a year. In 2014-2017 due to the investments made before the entry of sanctions was launched more than a dozen new fields. They ensured the growth of production by 25 million tons of oil.

If sanctions are strengthened, and the price of oil drops to $40 a barrel, oil production will begin to fall in 2019, experts say. In 2020 it should amount to 580 million tons, and in 2025 – 505 million tons.

Under the baseline scenario the decline in production is projected by 2025 to 540 million tons.

The production decline could be offset by the development of unconventional resources onshore and offshore fields. But offshore projects, usually develop with the participation of foreigners. In this regard, the sanctions effectively froze the development of this segment, the study said.

Restrictive measures will affect the development of shale fields in Russia in the coming years will not be supplied by the equipment used for hydraulic fracturing in the extraction of shale oil. Russia now has about 80 facilities for such works, of which only 3% – domestic. In 2014, when sanctions were imposed, Russia has not made any such fleet.

A lack of technology may affect existing conventional deposits, experts stress.

The forecast of the International energy Agency says that by 2023, the U.S. will become the largest oil producer in the world, ahead of Russia.

Due to sanctions Russia will be forced to cut oil production in the coming years – report «SKOLKOVO» 17.03.2018

Март 17th, 2018 by
36 queries