• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 6 hours 1 in 5 electric vehicle owners in California switched back to gas because charging their cars is a hassle, new research shows
  • 17 mins U.S. Presidential Elections Status - Electoral Votes
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours *****5 STAR Article by Irina Slav - "The Ugly Truth About Renewable Power"
  • 6 hours Сryptocurrency predictions
  • 10 hours Cyberattack Forces Shutdown Of Largest Gasoline Pipeline In United States - Zero Hedge
  • 4 days Americans are not agreement capable.
  • 4 hours Joe Biden's Presidency
  • 3 days How US Capitalism Uses Nationalism
  • 3 days Forecasts for Natural Gas
  • 3 days The Painful Death of Coal
Chinese Oil Imports Dropped 11% In April

Chinese Oil Imports Dropped 11% In April

China’s crude oil imports in…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

New Tax Break to Encourage Shale Oil Boom in Russia

The US and Russia had long been in a secret war to try and discover a method to access and extract hydrocarbons locked in tight rock formations such as shale. Both led failed programs that saw nuclear bombs detonated underground in an attempt to crack open the rocks; then Russia left the race to concentrate on its abundant, easily accessible reserves, and the US moved on to eventually develop hydraulic fracturing.

Having watched the success of the US shale boom Russia is keen to re-enter the field; although this time they will be looking to imitate rather than compete against.

The Russian government has been wary of fracking technologies being exported out of the US due to fears that it could enable European countries to develop their own tight natural gas reserves, and threaten the export volumes of the state-owned Gazprom.

Related Article: How Big a Role Will Shale Gas Play in America’s Energy Future?

The idea of developing shale oil, however, is very attractive to the Kremlin.

The US Geological Survey has estimated that Russia could contain between 80 billion and 140 billion barrels of crude oil in shale formations in West Siberia. Being able to extract even a fraction of this volume would significantly add to their overall, conventional reserves of 67 billion barrels.

Before the end of the year the Kremlin is expected to propose a large tax break for all companies working in the offshore industry, or in tight oil formations. The tax break will make shale oil economically viable in Russia.

Ahead of this, Exxon Mobil has entered a joint venture with the state-owned oil company Rosneft, to start testing for shale oil in Siberian formations.

Successful exploration could see Rosneft’s existing oil reserve estimates of 23 billion barrels increase by five billion. With the hope of the tax credit to increase the profitability of the shale oil, Bank of America Merrill Lynch is advising its clients to buy into Rosneft.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

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