• 3 hours UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 7 hours LNG Glut To Continue Into 2020s, IEA Says
  • 9 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 12 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 14 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 15 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 5 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 6 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 days VW Fails To Secure Critical Commodity For EVs
  • 7 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
Alt Text

Canada’s Pipeline Industry Takes Another Hit

Canada’s struggling oil industry has…

Alt Text

Europe Stands Divided On Gazprom’s Nord Stream 2 Pipeline

Gazprom’s Nord Stream 2 megaproject…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

‘’Russia Could Add Another 4 Million Bpd To Daily Output’’

Russian Roughnecks at work

Russia could boost its already record-high crude oil production by another 4 million barrels daily, said Rosneft’s head Igor Sechin. Sechin, speaking at the 5th Eurasian forum in Verona, Italy. He added that the increase will be pursued “if the market needs it.”

Russia recorded an average daily production rate of 11.11 million bpd last month, up 4 percent from August. Reuters recalls that in 2015, Sechin made another bold statement, saying that Russia’s output could increase by more than 14 million bpd over the next 20 years.

The production raise suggestion made by Rosneft’s chief, coming amid negotiations with OPEC on an output freeze or cut, is better understood in light of his forecast that by mid-2017, the persistent glut on international oil markets will have disappeared and prices will average $55 a barrel.

Russia daily Kommersant quotes Sechin as saying that despite the pickup in drilling activity in the U.S., the country’s total output will remain below 2015 heights, which will push prices above US$55 next year. He added that various fundamentals estimates, including Rosneft’s own, suggest that by 2040, consumption growth will hit 15 million barrels daily, which would warrant a matching rise in production.

In line with growing optimism about a concerted market-rebalancing effort on the part of OPEC and non-OPEC producers, Russia’s Economy Ministry revised last month its base scenario for 2016-2019 oil prices from US$25 a barrel to US$40 a barrel, Kommersant reports.

Russia made it clear in September that it was willing to join a production freeze, but only a freeze, not a cut. Still, a cut may still be on the table but it, as well as a potential freeze, would depend on OPEC reaching a consensus first. Russia’s Energy Minister and Saudi Arabia’s Oil Minister Khalid al-Fatih are meeting over the weekend to discuss the progress of negotiations.

Meanwhile, Rosneft, along with Gazprom Neft and Lukoil, are all launching new production projects next year, and Lukoil has even announced its plan to spin off or sell its downstream operations in Europe to focus exclusively on exploration and production.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • frank on October 20 2016 said:
    this is a warning for opec countries which do not want to sign the deal. Russia has the ability to ruin all of you, if you do not follow the deal.
  • zorro6204 on October 20 2016 said:
    He's probably right about some things, but 15M bpd by 2040? Try practically zero. It's amazing how someone could be so short sighted about what's going on right under his nose.

Leave a comment




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