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Russia to Keep Oil Output Stable in 2014

Tuesday, 21 Jan 2014 10:12 AM

Russia will at least keep its oil production at record-high levels this year thanks to strong performance at new fields but there is little chance of significant further gains in output, analysts and officials said.

Russia, the world's top oil producer, relies on oil export revenues to fill state coffers and keep its economy growing. Output rose 1.4 percent last year to a post-Soviet high of 10.51 million barrels per day thanks to greenfields launched a couple of years ago.

But the fields now ramping up production, such as Rosneft's Vankor deposit in Eastern Siberia, were discovered by Soviet geologists. Newer discoveries are years away from coming on stream and that will constrain growth potential.

And, although Russia is the world's second-largest oil exporter behind Saudi Arabia, its crude surplus is being squeezed by a massive round of refinery upgrades that will cut oil flows abroad.

The Energy Ministry predicts that domestic oil production will be at least unchanged this year, with so-called "old greenfields" such as Vankor or Surgutneftegas's Talakan fields helping offset declines at older brownfields.

Russia has three times more oil in the ground than the United States, but it stands to lose its lead in production as soon as next year due to the U.S. shale energy revolution, the International Energy Agency predicts.

Reflecting the lack of dynamism, state oil firm Rosneft said it replaced 180 percent of its production in reserves last year. Yet Russia's largest oil producer plans annual output growth of only 1 percent in the years to come.

© 2017 Thomson/Reuters. All rights reserved.

 
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Russia will at least keep its oil production at record-high levels this year thanks to strong performance at new fields but there is little chance of significant further gains in output, analysts and officials said.
Russia,oil,Saudi Arabia,export
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2014-12-21
Tuesday, 21 Jan 2014 10:12 AM
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