Russia forces companies to cut production and exports to comply with OPEC+, despite success in extraction
The Russian government has ordered oil companies to reduce production in the second quarter so that the country can reach its OPEC+ production target of 9 million barrels per day (bpd) by the end of June.
Previously, Russian Deputy Prime Minister Alexander Novak announced that Russia would cut oil production and exports by another 471,000 barrels per day (bpd) in the second quarter, coinciding with production cuts by other OPEC+ members . Thereafter, the country will gradually ease export cuts and focus only on reducing production.
Although Novak has not yet provided the expected production level, Reuters calculated that output will fall to nearly 9 million bpd in June if the country proceeds with its planned production cut.
Private sources not authorized to speak publicly told Reuters that Moscow had given specific targets to each oil company, an indication of its commitment to maintaining the OPEC+ commitment in a bid to support international oil prices.
Russian oil and gas condensate production has fallen from an annual peak of 11.7 million bpd in 2019 to around 10.8 million currently, due to production cuts. The country has not disclosed production or export data since it began the war in Ukraine.
Production also suffered this year due to unplanned disruptions and drone strikes by Ukraine. Novak's statement did not include the six-month ban on Russian gasoline exports, which began on March 1. Russian trade in crude and fuel has been under Western sanctions since Russia launched war in Ukraine two years ago, while the United States has imposed further sanctions on Russian oil major Sovcomflot.
Bloomberg reported , however, that Russia is experiencing a drilling boom, despite concerted efforts by the United States and its allies to limit technology transfer. The withdrawal of major Western oilfield services companies from Russia has left their local subsidiaries to fill the void, which they have so far done enthusiastically and successfully, proving that you don't have to be an international company to succeed in oil production. A bit like what also happens in the USA where there is a myriad of small oil companies.
“Only about 15% of the domestic drilling market depends on technologies from so-called hostile countries,” revealed Daria Melnik, vice president for exploration and production at Rystad Energy. Russia now has its own domestic mining industry. The day they can release production, ini
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The article Russia forces companies to cut production and exports to comply with OPEC+, despite success in extraction comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-russia-impone-alle-societa-di-tagliare-produzione-ed-export-per-rispettare-opec-nonostante-il-successo-nelle-estrazioni/ on Tue, 26 Mar 2024 08:00:35 +0000.