• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours U.S. Presidential Elections Status - Electoral Votes
  • 1 day Evergrande is going Belly Up.
  • 2 days World’s Biggest Battery In California Overheats, Shuts Down
  • 4 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 day Poland Expands LNG Powered Trucking and Fueling Stations
  • 11 hours The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 3 days And now, hybrid electric locomotives...
  • 3 days The Painful Death of Coal
  • 3 days Ozone layer destruction driving global warming
  • 3 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?

Russia Is Struggling To Boost Oil Production

Russia is having trouble reversing an oil production decline it implemented under its agreement with OPEC+, Reuters writes, citing unnamed sources.

According to these sources, Russia has been producing some 10.42 million bpd of crude oil and condensates since the start of the month, which is lower than May’s average of 10.45 million bpd.

The reason for the decline could be related to difficulties with boosting production at older fields, other sources, also unnamed, told Reuters.

There was talk about such difficulties as early as last year when OPEC+ first agreed to take some 7.7 million bpd off the market in response to the demand destruction caused by the pandemic.

“Mass sealing of oil wells is a much more serious thing than short-term idling” in the Russian climate conditions, according to oil industry executive Evgeny Kolesnik, who spoke to Bloomberg in May 2020. “It’s by far not a given that after a well has remained shut-in for so long it will pump at the same levels as before.”

Initially, the report noted, when Russia had joined OPEC members in their production control efforts, its oil companies cut a relatively small portion of production, slowly, and for a few months only. In 2020, these companies were asked to cut much deeper and much faster, as well as for much longer.

Related: Can The Middle East Survive Without Oil?

With such long production suspension, there is the risk of never being able to restart some of the wells. The longer a well sits idle, the more likely pressure changes become, as well as water content changes capable of rendering the well unusable ever again.

OPEC+ is meeting later this week to discuss the next steps in its production control agreement. Early reports said the cartel was mulling over bringing additional supply online from August in response to the fast rebound in demand.

By Irina Slav for Oilprice.com

More Top Reads From 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