Oil production in Russia falls to ten-year low

Oil production in Russia falls to ten-year low

According to the data of the Central Dispatching Department of the Fuel Energy Complex,  oil and gas condensate production in Russia decreased by 8.6% - to 512.68 million tons in 2020.

Thus, the largest reduction was documented in December - production fell by 11.1% to 42.5 million tons.

In 2020, Russia broke the post-Soviet production record, producing 568 million tons of oil and condensate per year. In 2020, the oil market was shaken by a drop in demand amid the Covid-19 coronavirus pandemic, while the supply of raw materials was in excess.

To restore the situation in the market, the OPEC + countries agreed to reduce production by almost 10 million barrels per day. Russia and Saudi Arabia have the largest quota restrictions. As a result, oil production in Russia dropped almost to the ten-year low: in 2010 it amounted to 512.3 million tons.

Since the beginning of the year, Rosneft reduced production by 9.8% to 196.4 million tons (in December - by 12.3%, to 16.2 million tons), Lukoil - by 10.6% to 73.7 million tons (in December - by 13.4%, to 6 million tons), Surgutneftegaz - by 9.9% to 54.75 million tons (in December - by 14.7%, to 4, 4 million tons), Gazprom Neft - by 6.2% to 56.7 million tons (in December - by 6.6%, to 4.66 million tons), Tatneft - by 12.7%  to 26 million tons, Novatek - by 0.5% to 11.8 million tons (in December, the company produced 1 million tons, an increase of 3.4%).

The operators of the production sharing agreement reduced oil and condensate production by 4.1% to 14.1 million tons (in December - by 1.7%, to 1.22 million tons).

The Central Dispatching Department of the Fuel Energy Complex report informs that oil exports from Russia in 2020 amounted to 232.5 million tons, which is 12.7% less than in 2019. At the same time, in December 2020, supplies of Russian oil abroad fell by 15.3%, to 18.58 million tons.

Since the beginning of 2020, oil exports from Russia to non-CIS countries fell by 11.8% to 219.16 million tons (in December - by 15.9%, to 17 million tons), to neighboring countries - by 24% to 13.35 million tons (in December - by 8.6%, to 1.55 million tons).

Since the beginning of the year, oil transit decreased by 0.7% to 19.7 million tons (in December it increased by 0.8% and reached 1.8 million tons). At the end of the year, supplies to the domestic market decreased by 5.2% to 274.9 million tons. At the same time, 23.4 million tons of oil were supplied in December, which is 6.9% less than in 2019.


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