• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 42 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days The United States produced more crude oil than any nation, at any time.
  • 9 days e-truck insanity
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 8 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 9 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 12 days Bankruptcy in the Industry
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Novak Sees Russia Oil Output Shrinking 8%

  • Russian Deputy PM Novak sees crude oil production fall by around 8% in 2022.
  • Novak: The total oil output of the country this year could be between 480 and 500 million tons.
  • Novak: Russia’s oil output declined by about 1 million bpd in April and is already recovering.
Novak

Crude oil production in Russia could shrink by up to 8 percent this year, Deputy Prime Minister Alexander Novak said today, as quoted by RIA Novosti.

The total oil output of the country this year could be between 480 and 500 million tons, Novak said, which would be a 5-8-percent decline from 2021. But this forecast could change depending on the situation, Novak said.

Earlier this year, the Russian economy ministry forecast a sharper decline in oil production, of about 9.3 percent to 475.3 million tons, under its base scenario. This rises to 17.2 percent in the ministry’s conservative scenario, or 433.8 million tons.

Novak said that the actual decline in production would be smaller, noting that in April, Russia’s oil output declined by about 1 million bpd and is already recovering. Novak added that the recovery would likely continue.

According to analysts, Russia’s oil output could yet shed as much as 3 million bpd in the second half of the year as a result of sanction action from the West. The sanctions will also continue to affect production trends in the future, too, as there is virtually no chance of the sanctions being lifted anytime soon.

Rosneft, Russia’s largest oil producer, is also the producer to suffer the biggest decline in production, according to industry data from the Russian Energy Ministry.

As of mid-May, Russia’s oil production was 830,000 bpd lower than it was in February. Rosneft—the top producer and the top refiner in Russia—accounted for 560,000 bpd of this drop, according to the ministry’s data, as cited by Bloomberg.

This means that Russia’s current production is below 10 million bpd, at around 9.16 million bpd, according to the Bloomberg calculations, and more than 1 million bpd below its quota under the OPEC+ production recovery agreement.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on May 26 2022 said:
    If Russian Deputy Prime Minister Alexander Novak says that Russia’s crude oil production in 2022 could be 5%-8% lower than in 2021, then his figures should put an end to unsubstantiated claims by the hapless IEA and analysts about a decline of 3.0 million barrels a day (mbd).

    Mr Novak expects Russia production this year to range from 9.64-10.04 mbd or 380,000-780,000 barrels a day (b/d) shy of Russia’s OPEC+’s allocated production quota of 10.42 mbd.

    This is a spectacular achievement given the harshest and most comprehensive Western sanctions in history against Russia.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News