Oil and Gas thread Only. Please post comments on all other subjects on the “Other Subjects” thread below.
Russian oil output, one of the world’s largest, reached a new post-Soviet monthly high of 10.74 million barrels per day (bpd) in September thanks to foreign-led projects and Rosneft, Energy Ministry data showed on Friday.
Output rose from 10.68 million bpd in August and eclipsed the previous record of 10.71 million bpd reached earlier this year, adding to a global glut that has battered oil prices.
This answers a question I have been asking for years, “why is Russian reported production always at least half a million barrels per day higher than EIA or JODI reported Russian production”? Russia is reporting foreign production as if it were produced in Russia! What if the United Kingdom were to do this? Then the BP Alaskan production and much of the production in the Gulf of Mexico would be reported as United Kingdom production. But then the US would get to count all the oil Exxon produces around the world.
Oil production in Russia may fall to 310 million tons from the current 525 million tons by 2035 given a tougher tax regime amid low oil prices and sanctions, according to LUKoil Vice President Leonid Fedun.
That is a 2.6 percent drop per year. That’s what Lukoil is saying will happen if Russia keeps the current tax structure. Of course they are lobbying for a much lower tax rate, saying that is the only way they can have enough money to invest in enough new production to hold production to only a slight decline, down to only 502 million tons a year.