• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 6 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 3 hours Let’s Try This....
  • 3 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 8 mins New Aussie "big batteries"
  • 8 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 1 hour China to Impose Dictatorship on Hong Kong
  • 30 mins Would bashing China solve all the problems of the United States
  • 1 hour Monetary and Fiscal Policies in Times of Large Debt:
  • 10 mins 60 mph electric mopeds
  • 23 hours Iran's first oil tanker has arrived near Venezuela
  • 1 day Nothing can shake AMLO’s fossil-fuel fixation
  • 1 day US-China tech competition accelerates: on Friday 05/15 new sanctions on Huawei, on Monday 05/18 Samsung chief visits China
Is The U.S. Prepared For War With China?

Is The U.S. Prepared For War With China?

Just as before World War…

Is Dieselgate Finally Over?

Is Dieselgate Finally Over?

Five years after Volkswagen’s dieselgate…

Russia Oil Output Rises To New Heights In September

Russian crude oil production in September rose to a new high of 11.11 million barrels per day, up 4 percent on August, figures from the Energy Ministry showed. Production will continue to grow next year as well, according to UBS analysts quoted by Reuters.

At the forefront of the rise were giants Rosneft, which recorded a 2.6-percent production increase last month, and Gazprom Neft, which did even better, raising output by 5.2 percent. Conventional fields accounted for the bulk of overall production but non-conventional deposits’ contribution also expanded, despite Western sanctions concerning technology and know-how about shale oil and gas extraction.

Russia’s all-time record daily output was achieved in 1988, during Soviet times, and stood at 11.41 million bpd, Reuters notes.

The September rise, which reflected a bit better international oil prices, came amid talks with OPEC on capping production, which Russian Energy Minister Alexander Novak said the country is ready to do if it reaches an agreement with OPEC. For now, the question remains hanging, which could be a big part of the reason Russia is doing its best to pump as much as possible – a production cut is not on the table at the moment, so making sure the ceiling is as high as possible is a tactic that would make sense for Russia, just as it did for Iran.

Meanwhile, Russian oil companies are demonstrating a surprising resilience: in S&P Platts’ latest Top 250 Companies for 2016, there were four Russian E&Ps in the top 10: Gazprom, Lukoil, Rosneft, and Surgutneftegaz.

In an article for the Financial Times, Citigroup’s chief Russia analyst Ronald Smith notes that in this situation, no one should bet big on Russia joining the market rebalancing efforts of OPEC. Its oil industry, Smith pointed out, has mechanisms that make it possible for players in the field to withstand “almost any price environment.” He added, however, that the increase in production will start slowing down in the months to come, as the current rate of increase is unsustainable.

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