• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 4 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 10 hours CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 5 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 3 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 7 hours NordStream2
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 4 days 2019 - Attack on Saudi Oil Facilities.
  • 4 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years
  • 6 days Peak oil - demand vs production
Why Bitcoin’s Energy Consumption Is Worth It

Why Bitcoin’s Energy Consumption Is Worth It

It’s no secret that bitcoin’s…

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

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