• 55 mins Exxon Starts Production At New Refinery In Texas
  • 2 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 20 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 20 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 21 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 22 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 22 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 23 hours VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 8 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
New Tech Is Transforming Japan’s Energy Sector

New Tech Is Transforming Japan’s Energy Sector

The tech that built bitcoin…

The Next Big Digital Disruption In Energy

The Next Big Digital Disruption In Energy

Blockchain technology is transforming the…

Exxon Signs Deal to Help Rosneft Develop Huge Bazhenov Shale Play in Siberia

Vladimir Putin’s power in Russia is underpinned by oil boom that he has overseen. Unluckily for him the oil boom has passed and reserves are declining, threatening the production capacity so important for the revenue his government earns, and for maintaining his grip over the nation.

Russia’s Bazhenov shale play in Siberia is one of the largest in the world, 80 times larger than the Bakken shale play in North Dakota. It offers the potential for securing Putin’s power and returning Russia to the top as the world’s largest oil and natural gas producer.

However the Siberian climate in which the Bazhenov exists makes fracking much more difficult. This has lead Russia’s state controlled oil company, OAO Rosneft, to form a partnership with Exxon Mobil Corp who have vast experience fracking for tight oil in the US. As part of the deal Rosneft has also acquired 30% of a Texas tight oil project in order to receive direct experience with fracking technology.

Hopes that the Bazhenov will one day match the growth of North Dakota’s Bakken field depend on Putin offering tax breaks in order to make the projects profitable. Putin may be reluctant to offer the tax breaks as it will see the nation’s income from petroleum revenue fall.

As Ronald Paul Smith, an oil and gas analyst from Citigroup Inc., said, “if the government is serious about promoting tight oil production, it is within their grasp.”

Rex Tillerson, the CEO of Exxon, is excited by the potential of the Bazhenov play, but admits that the tax breaks will be vital. “The in-place potential is enormous -- billions of barrels. The real issue is can we develop it in a cost effective way? -- same as the issue we have with tight oil and unconventional resources in North America.”

Other companies are also working on the Bazhenov field, including Russia’s second largest oil producer OAO Lukoil, and OAO Surgutneftegas, both of who already have the resources to access the billions of barrels in the formation.

By. Charles Kennedy of Oikprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News