• 1 hour UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 5 hours LNG Glut To Continue Into 2020s, IEA Says
  • 7 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 10 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 12 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 14 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
  • 3 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
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 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
  • 5 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
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 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%
Did These Mining Giants Just Confirm The Next Gold Frontier?

Did These Mining Giants Just Confirm The Next Gold Frontier?

After Ecuador’s President removed a…

UK Oil And Gas Costs To Rise 100% If Brexit Fails

UK Oil And Gas Costs To Rise 100% If Brexit Fails

Brexit negotiators’ failure to secure…

Novak Says Russia’s Energy Industry Has Overcome U.S. Sanctions

Moscow

Russia’s Energy Minister Alexander Novak said at this year’s edition of CERAWeek that the country’s oil and gas industry has successfully gotten over the U.S. sanctions, raising crude oil output by 400,000 barrels daily since 2014.

The sanctions, targeting individuals and legal entities close to President Putin, many from the energy industry, were imposed in 2014 by the Obama administration, following Russia’s annexation of the Crimea peninsula and its military involvement in Ukraine.

In his speech, Novak went on to say that unlike many Western companies, Russia’s oil and gas operators fared much better during the crisis, adding that they have managed to bring down production costs to between US$10 and US$15 a barrel on average.

While the latter part of the statement should be taken with a pinch of salt, the former is largely true – Russia’s oil majors had all the government support they needed to weather the worst of the crisis, and they have a lot of experience with slimmer profits, again courtesy of the government, so the shock wasn’t as bad as it was for Western Big Oil and the Middle Eastern Gulf producers.

Asked whether Russia was contemplating OPEC membership, Novak responded in the negative, nevertheless noting that collaboration with the cartel was important for Russia. He added that lack of cooperation over the last few years had resulted in US$500 billion in lost global investments.

Related: Oil Price, Sanctions Weigh On Russian Stocks, Moscow Unfazed

The Energy Minister’s speech comes amid worry that Russia is curbing its crude oil output slower than it should: the country agreed to shave 300,000 bpd off its average output in the first half of the year, but its compliance rate has been less than exemplary compared with Saudi Arabia’s – the initiator of the supply reduction deal.

Riyadh has already cut more than its quota. It slimmed down daily output to 9.78 million barrels last month, versus a quota of 10.06 million bpd. Russia, on the other hand, announced cut of 100,000 bpd. Novak says Russia’s energy industry has overcome U.S. Sanctions
in January and has made no change in this rate of compliance in February. However, Novak said, the 300,000 bpd target will be struck by the end of April.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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