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Tuesday, April 15, 2008
Second Largest Oil Producer Posts Production Decline
Russia, the world's second-largest oil producer, indicated that it has hit a plateau in production. In fact, Russia’s oil production last month, 9.76 million b/d, declined 1.3% compared to March 2007. Compared to last October’s high-water mark of 9.93 million b/d, production has declined 2.4%.
Previously, the Russian Natural Resources Minister warned that a drop in oil production was likely for 2008 compared to 2007. The downturn in Russian oil production did not come as a surprise within the country, since various Russian experts during 2004-2005 vocalized concerns about future slowdowns.
The lack of sufficient pipeline capacity, high decline rates from aging fields, and tough new tax regimes all grab some share of the blame for the stagnant oil production rates. It is predicted that Russia will cut taxes on oil companies to encourage development of new, harder-to-reach deposits and thereby alleviate the market stagnation.
The full text of this article appears in the April 14, 2008 edition of Peak Oil Review, courtesy of ASPO-USA. To link to the article, click here.
Previously, the Russian Natural Resources Minister warned that a drop in oil production was likely for 2008 compared to 2007. The downturn in Russian oil production did not come as a surprise within the country, since various Russian experts during 2004-2005 vocalized concerns about future slowdowns.
The lack of sufficient pipeline capacity, high decline rates from aging fields, and tough new tax regimes all grab some share of the blame for the stagnant oil production rates. It is predicted that Russia will cut taxes on oil companies to encourage development of new, harder-to-reach deposits and thereby alleviate the market stagnation.
The full text of this article appears in the April 14, 2008 edition of Peak Oil Review, courtesy of ASPO-USA. To link to the article, click here.
Labels: oil supply, peak oil
posted by Amanda Voss at 2:15 PM
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