EPRS Admin By / February 17, 2022

Russian oil gas production exports

Russian oil, gas production, exports
In tonnes (oil)/cubic metres (gas); 2013 = 100

Russian oil, gas production, exports In tonnes (oil)/cubic metres (gas); 2013 = 100

Specifically, sanctions restrict cooperation on Arctic, deepwater and shale oil fields. Traditionally, Western companies play a key role in developing these promising but hard-to-access reserves, given that Russia does not always have the requisite capital and innovative technology. In 2014, ExxonMobil ended cooperation with Russian oil producer Rosneft on a recently discovered huge oil field in the Kara Sea. Sanctions also bar loans and investment in Russian energy majors such as Rosneft. Hit by low oil prices and unable to re-finance its debts on Western markets, in 2014 the heavily indebted company was forced to seek a government bailout.
Since then, however, the Russian energy sector has not only survived but even prospered. Financing costs may have risen, with Asian lenders such as Chinese banks demanding higher interest rates, but on the other hand, profits have risen with recovering oil prices and lower operating costs due to the devaluation of the rouble. From 2014 to 2019, prior to a pandemic-related drop in 2020, oil and gas output rose to record-high levels, increasing by 7 % and 15 % respectively; natural gas exports to the EU, which are not restricted by sanctions, have also grown (Figure 3).

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