Russia is ahead of Saudi Arabia in oil production and is second only to the United States, reports RIA News…
According to the chief analyst of the financial company Esperio Lev Kravets, it will be unlikely to catch up with the United States in terms of production in the near future, but it is possible – within three to five years. This is due to the fact that, despite joining the OPEC + deal to reduce oil production until 2022, the United States is not bound by obligations and may change volumes.
“The Joseph Biden administration does not grant subsidies and tax breaks to oil workers. Prefers green technologies. Most likely, investors will reduce funding for shale projects, ”added Kravets.
At the same time, Russia, having reduced exports by almost 12 percent (to 11.4 million tons), is fulfilling its obligations under the OPEC + deal. It is noted that it makes sense for domestic oil companies to increase production only if the global demand is at least 100 million barrels per day, since production is not cheap. In the second quarter, the cost of oil reached 20.4 thousand rubles per ton – the maximum in ten years.
According to the forecast of the Norwegian consulting company Rystad Energy, Russia may well reach a record level of oil and gas condensate production by July 2022.