• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 6 hours Oil prices going down
  • 24 mins Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 10 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 2 hours Sell out now or hold on?
  • 9 hours Two Koreas Agree To March Together At Asian Games
  • 1 min What If Canada Had Wind and Not Oilsands?
  • 8 hours Oil and Trade War
  • 1 hour When will oil demand start declining due to EVs?
  • 1 hour Correlation Between Oil Sweet Spots and Real Estate Hot Spots
  • 47 mins venezuala oil crisis
  • 14 hours Australia mulls LNG import
  • 10 hours Geopolitical and Political Risks make their strong comeback to global oil and gas markets
  • 5 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 19 hours No LNG Pipelines? Let the Trucks Roll In
  • 19 hours China & India in talks to form anti-OPEC
  • 7 hours Trump Renews Attack On OPEC Ahead Of Group's Production Meeting
Rig Count Falters Amid Oil Price Correction

Rig Count Falters Amid Oil Price Correction

The rig count slipped on…

New Shale Oil Developments will Keep Russia at the Top

Russia, the world’s second largest oil producer after Saudi Arabia, has been in a declining state for some years now, its economy is weak, its population is shrinking, and its geopolitical power is not what it once was; add to all that the fact that its oil industry is quickly set to enter decline, and the future does not look too promising.

The FT has reported good news for the Kremlin. According to Leonid Fedun, the vice-president of Lukoil, ‘Russia, the world’s second-largest oil producer after Saudi Arabia, will be able to maintain crude output of 10m barrels a day for years to come as output from western Siberia’s Bazhenov Shale offsets declines in the country’s mature oilfields.’

The Bazhenov fields are estimated to be five times larger than the Bakken shale play in the US, so Russia looks set to have a long and healthy future if they can be successfully developed. Russian companies don’t currently have the technology to set up horizontal drilling rigs sued in the US shale boom, and are therefore pushing the Kremlin to offer further tax breaks before any exploration is begun.

Relative article: Will Rising Natural Gas Prices End the US Shale Revolution?

The US is pleased that Russia is set to begin extracting its shale reserves, as more oil on the world markets will help to keep prices low, reduce dependence on the Middle East, and increase security of global supplies. The Russians also tend to become more malleable politically when their finances are tight, which is likely to occur if the oil companies are granted their tax breaks.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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