Oil in Russia is becoming more difficult to extract


Almost all oil production in Russia will consist of so-called hard-to-recover reserves unless the country accelerates and stimulates exploration of new fields, Russian Deputy Energy Minister Pavel Sorokin said on Wednesday.


Almost 100% of our production will be hard-to-recover within the next ten years. This is a serious deterioration in the quality of raw materials.

- said Sorokin.

According to the Deputy Minister of Energy, the cost of extracting hard-to-recover reserves will be much higher than that of traditional ones.

According to the American publication OilPrice, this will become a significant problem for Russia, one of the largest oil producers in the world, as the quality of its reserves will decrease, and oil production will become much more expensive than it is now.

Russia needs to stimulate exploration in order to replace hard-to-recover reserves with new, potentially cheaper to operate deposits.

In May of this year, Russian Minister of Natural Resources Alexander Kozlov said that the country's internal oil reserves would be sufficient until 2080 at the current rate of annual production. The actual reserves of oil and gas in Russia may even grow if it intensifies exploration in areas that are difficult to drill for drilling, the minister added.

Russian oil and gas exploration volumes fell to their lowest level in five years in the first half of 2021 after last year's pandemic crisis led to sharp cuts in exploration capital expenditures, according to global data published by analyst firm GlobalData data.

According to GlobalData estimates, in the first half of this year, Russian companies discovered oil and gas in six very small fields, increasing their reserves by just 36 million barrels, which is equivalent to less than four days of daily oil production in Russia.

While Russian oil export revenues this year have rebounded significantly on the back of high oil prices due to recovery in global demand, exploration continued to suffer from the 2020 COVID crisis, which forced companies to cut their exploration drilling capex.

To maintain its place as one of the leading oil and gas producing countries, Russia needs to ensure a stable pace of exploration to replace depleting fields. Otherwise, Russian oil workers will begin to feel the consequences of the COVID-19 pandemic long before the complete victory over the virus.

- writes GlobalData.
7 comments
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Cherry Offline Cherry
    Cherry (Kuzmina Tatyana) 25 November 2021 11: 33
    +3
    unless the country accelerates and stimulates the exploration of new deposits,

    That is? What should the country do? Pay for exploration and drill wells? And then there will be new Khodorkovsky who will start pumping "well fluid" from them and not pay taxes? And Mr. Pavel Sorokin, Deputy Energy Minister of Russia, does not want to introduce foreign experience? Let those who wish take a loan, get a permit for exploration, find, drill and pump. Like all over the world! The freebie is over! It must end!
  2. Alexndr p Offline Alexndr p
    Alexndr p (Alexander) 25 November 2021 11: 39
    0
    I will tell the author a secret - this is the case all over the world, where the extraction of minerals is carried out and no matter what - gas, oil, ore.

    This is logical.

    Only in Russia is a storehouse in the northern Trans-Urals unopened. The road will be built - and the reconnaissance will work. And many countries do not have such a stash.
  3. gorenina91 Offline gorenina91
    gorenina91 (Irina) 25 November 2021 13: 16
    -4
    Oil in Russia is becoming more difficult to extract

    - I read here ... here ... here comments on this topic and ............
    - And just - "I am stunned and cut down - from these Russians" ...
    - They say - come, people are kind - scout, download ... - And then everything will be "shared in a brotherly way" ...
    - This number ... is the "prerogative of the" backward "banana-pre-banana" seedy backward republic ... - and not for Russia; who just ate a dog in this field ... - And then suddenly - just today - "without helpers" Russia - well, just "no way" - invest, "aliens", and use ... - Damn - invest a pretty penny - and then they leave - without underwear ...
    - Russia ... what else hasn't "drank enough" from such "co-founders-partners" ???
    - Isn't it easier then "deeply and civilized" for Russia to get involved in the development of "Iranian oil" - and start raking in money with shovels ... - How great it is ... - when everything is "civilized" like that ... - Why something is not very successful in Russia with such a "business" ...
    - And in Africa, Russia kept trying to invest; both in Latin America and in Syria - "I invested in many places" ... - But decades passed and - "And we haven't seen milk yet" ... - only losses and debt cancellation ...
    - And how tiny Norway is; which for a time - neither gas nor oil - has never been produced ... - But she took it herself (Norway) coped with it and raised her country - "out of mud - and into riches" ??? - Yes, even in such difficult and difficult places ... - from the bottom of the sea ... - I had to build platforms and drill ... - into the bottom of the sea ...
    - Maybe we can call this "huge and mighty Norway" to help us ???
    - And we will divide the profit - 50/50 ... - And what ??? - Norway, just too - is running out - and oil and gas - and the Norwegians need - for production - to drill into other depths of the sea ... - They will easily agree ... - Well, so they "found a way out" .. ...
    1. Cherry Offline Cherry
      Cherry (Kuzmina Tatyana) 26 November 2021 04: 59
      -1
      I read here ... here ... here are comments on this topic and ............
      - And just - "I am stunned and cut down - from these Russians" ...
      - They say - come, people are kind - scout, download ... - And then everything will be "shared in a brotherly way" ..

      And where did you read this in two comments?
      1. gorenina91 Offline gorenina91
        gorenina91 (Irina) 26 November 2021 05: 35
        -2
        That is? What should the country do? Pay for exploration and drill wells? And then there will be new Khodorkovsky who will start pumping "well fluid" from them and not pay taxes? Doesn't Mr. Pavel Sorokin, Deputy Energy Minister of Russia, want to introduce foreign experience?

        - On-those ...
        - For you personally - so "gifted" (or who you are there - he or she) ...

        Pay for exploration and drill wells?

        - Namely, namely - the state company - must "at its own expense" (at the expense of its state, which maintains this company) - must carry out exploration (without the participation of "import co-founders"); officially go through the procedure for state registration of entrepreneurial activity with an authorized body. It is necessary to hand over a package of required permits, as well as pay a state fee for the performance of legally significant registration actions and register the company (without the participation of "import co-founders"); "to make drilling" (without the participation of "import co-founders"); and start producing oil (gas, etc.) - without the participation of "import co-founders" !!! ...
        - And no "import co-founders" here ... here ... here - it is not necessary at all !!!
        - These "import co-founders" - you just need to drive a nasty broom from all Russian mining, industrial and other enterprises ...
        - As Russian "swindlers at the state level" - they love all kinds of "import investors-co-founders" !!! - These investors bring certain investments - what a joy for our "fraudsters at the state level" - you can always "cut off the nth amount" from these investments ... "invested investments" and then for them the profitable "colonial activity in Russia" begins ...
        - Little Norway had enough fortitude and courage not to follow "this path" ... - only the absolute nationalization of all its mining mines !!! - And no "import investors-co-founders" - grabber !!! - So she "rose" ... - from a small inconspicuous "country of fishermen" - became an economically developed state - with a high standard of living !!!
  4. Evgeny Vinokhodov (Evgeny Vinokhodov) 26 November 2021 07: 52
    0
    I read that Russia will run out of oil in 2015. So not everything can be trusted.
    1. psergeev2 Offline psergeev2
      psergeev2 (Peter Sergeev) 21 December 2021 03: 23
      0
      Baku oil "ran out" about 50 years ago))