IEA: Russia’s oil output to reach its peak in 2020
Russia’s oil and gas condensate production will grow in the next few years, peak in the early 2020s and then begin to fall due to the sanctions and the industry’s taxation scheme, the International Energy Agency (IEA) said in an oil market report.
The IEA said that a tax reform in Russia’s oil industry, including the so-called tax maneuver and introduction of an additional income taxation system, could become the key drivers of oil production growth in the long-term, Prime agency reported.
In 2017, Russia hit a record oil output of nearly 11 million barrels per day despite its participation in a production cut agreement between OPEC and non-OPEC states. According to the agency, further growth is possible in the next few years if restrictions envisaged by the agreement are lifted and new projects are launched.