• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 9 mins Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 1 day Did China cherry-pick the factors that affected the economic slow-down?
  • 3 hours Are you aware of Oil Price short videos on our energy topics?
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 8 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 11 hours NordStream2
  • 4 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 410 days Class Act: Bet You've Never Seen A President Do This.
  • 1 min "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 4 days Forecasts for Natural Gas
  • 4 days Australia sues Neoen for lack of power from its Tesla battery
  • 4 days Nord Stream - US/German consultations
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

Russian Banks To Finance 200,000 Bpd In New Oil Production Capacity

  • At least two Russian banks are lending some $6 billion to the oil industry to drill new wells that could add 200,000 bpd to the country’s production quickly.
  • It is a tactic the Russian companies likely borrowed from its U.S. competitors: drilling but not completing wells to have new production at the ready when prices call for it.

At least two Russian banks are lending some $6 billion to the oil industry to drill new wells that could add 200,000 bpd to the country’s production quickly, unnamed sources have told Reuters.

It is a tactic the Russian companies likely borrowed from its U.S. competitors: drilling but not completing wells to have new production at the ready when prices call for it, so they can bring it online fast--completing an oil well takes a lot less time than drilling the whole thing from scratch.

Energy Minister Alexander Novak said in late April that oil companies may start drilling but not completing wells for future production in order to keep oilfield service providers in the business. Now, another goal would be to help Russia maintain or expand its market share on short notice if demand rebounds.

Russia’s oil production is down by about 2 million from last year’s average of 11.3 million bpd per its agreement with OPEC+. Most of the wells that Russian companies had to shut to effect the production cuts were mature ones and may not be brought back on stream when—and if—prices recover, Reuters noted in its report.

This means that new production will be necessary but, if possible, without the full investment done upfront. Instead, the investment will be distributed over a longer period and only when necessary to complete the wells so they can start producing.

Novak earlier this month said he hoped oil demand could recover next year to pre-pandemic levels. However, he noted that it could take two to three years for this recovery to materialize.

Oil demand has been recovering across the world as pandemic-forced national lockdowns began to be lifted and borders reopened. However, the situation is still fragile, with little clarity as to whether demand will improve to pre-crisis levels.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

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