Russian paper Pravda asks whether Russian only has seven years before they face an oil crisis:
Britain’s largest bank HSBC forecasts that Russian revenues from oil exports will drop significantly in the next seven years, as the bank foresees a decline in oil production by 13 percent in the period from 2020 to 2025.
It is thought that in 2021 the budget will experience the first losses amounting to approximately $2.1 billion, while the negative trend in the following years will only increase. Russia will have to increase its oil production at least by 40 million tons just to compensate from the decrease.
Currently, the reserves of the opened oil fields are estimated at 10 million tons, which is about 67 percent of the substitution. According to experts, the oil production in Russia will grow by two percent a year between 2016 and 2018, while the peak of oil production will occur in 2018-2019.
According to Deputy Minister of Energy Kirill Molodtsov, this year the level of oil production in Russia should reach 520 million tons of oil; in 2012, this number was slightly lower, 518 million tons of oil. Some regions in Russia are already showing declines in oil production.
For example, in the Khanty-Mansi Autonomous District, a leading’s oil producing region, production has been decreasing since 2008. In 2011 the production level fell by two percent compared to the previous year. The decrease is because the old fields have been depleted, and the development of major new fields with reserves of over 300 million tons of oil is not being put into action.
Russia is one of the most significant world leaders in the production of oil, but traditional fields do not last forever. There is little doubt that there is certainly a need to find new large oil resources.
The full article can be found at: http://english.pravda.ru/business/companies/13-09-2013/125651-russia_oil_crisis-0/
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