Source Pravda.Ru

Oil Extraction in Russia at Its Limit

'Russian oil exports are almost at their limit,' said Alexander Arbatov, a member of the board of the International Fuel and Energy Association, and deputy chairman of the Council for Studying Production Capacity of the Russian Ministry for Economic Development, live on air today on Echo of Moscow radio. Commenting on OPEC's decision to increase quotas for oil production by 1.5-2 million barrels per day, Arbatov said that Russia has not yet determined her position on this matter. 'In any case,' he said, 'we cannot play a decisive role on this issue.'

Arbatov explained that in Russia the notion that 'oil exports are at their limit' means that oil extraction rates are practically at their limit. In 2002, oil extraction in Russia increased by 9.1%, and exports by 8%. 'Domestic consumption of oil is growing very slowly, so most of the increase in oil extracted goes for export,' he said. However, Arbatov explained that the limiting factors on extraction are more technical than natural. 'We don't have any ready fields like Iraq which we could quickly put into use. Neither do we have any that we could quickly develop and bring on stream,' said Arbatov. 'As for currently operational fields, we have limits that restrict the volume of oil extracted annually to 2-3% of overall reserves.'

Arbatov believes that 'it's necessary to think about creating an oil reserve.' 'In favourable conditions this oil can be supplied to the market, and in unfavourable conditions the reserve will allow drilling to continue and extraction to continue apace. In between, this highly liquid oil which has already been extracted can be used to secure loans,' he said.

Comments
The horror story called Brazil: Murder and destruction
Russia close to recognising Donetsk and Luhansk republics after Donbass elections
Five years after Maidan revolution, Ukraine remains one of Europe's most corrupt states
Why Trump tries to re-industrialize America
USA plays to pretend a mighty dragon that can no longer breathe fire
US interferes in election of Interpol president, Kremlin believes
US interferes in election of Interpol president, Kremlin believes
Five years after Maidan revolution, Ukraine remains one of Europe's most corrupt states
Brexit: The UK's misunderstanding of Democracy
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Argentina hides the truth about the death of San Juan submarine
Japan ratifies agreement to supply weapons and ammo to warring states
Russia to ban capture of killer whales and belugas in 2019
Russia to raise sunken floating dock
Why Trump tries to re-industrialize America
Kuril Islands dispute between Russia and Japan: The impossible is impossible
Putin dislikes the idea of US army bases coming to Kuril Islands
Argentina hides the truth about the death of San Juan submarine
USA plays to pretend a mighty dragon that can no longer breathe fire
Russians lose faith in their future, get ready for worse
Russians lose faith in their future, get ready for worse