Russia’s oil and gas output is likely to increase strongly by 2030, with government planning to invest heavily in the sector as well as anticipated increase in overseas demand.
According to the projection of the Russian government, oil production in Russia is expected to reach up to 535 Million Tons while natural gas production is likely to hit the mark of 880-940 Billion Cubic Meters per annum by 2030, reported
Oil & Gas Eurasia.
Most of the oil and gas production is to be spent on the domestic market. Here it is noteworthy that by 2030, country’s energy consumption is predicted to increase by 80% as compared to mid 1980s.
This anticipated surge in oil and gas production is in line with the government’s plan to invest heavily in Russia’s energy sector. By 2030, investment in the country’s fuel sector is anticipated to reach 60 Trillion Rubles ($1.9 Trillion). In addition to this, from 2013, the energy fuel sector will receive almost 5.5% of the country’s GDP.
Growing international demand will also favor the future growth of the sector. Countries like China, Japan, USA and Europe are expected to pose increasing demand, as their domestic production will be insufficient to meet their future requirements; as a result, export of oil and gas will emerge as a profitable trade for Russia, reveals “
Russian Oil and Gas Industry Analysis”, a latest industry research report by
RNCOS.
As per the estimates of the Russian government, oil exports are likely to increase to 329 Million Metric Tons by 2030, mainly on account of a planned growth in supplies of crude oil to the east, of 20-25% from the present 6%.
It is learnt that Russia’s oil output in 2008 was recorded at 488 Million Metric Tons while the natural gas production increased 1.6% to 663 Billion Cubic Meters. The country is likely to produce 620-644 Billion Cubic Meters of gas this year.
According to a Research Analyst at
RNCOS, “In spite of several supportive factors, Russia’s oil and gas sector still faces some challenges. The country could encounter a shortfall in expansion of its production capacity in lack of foreign investment. Moreover, increasing state ownership in the sector is limiting the latest western technologies for exploration and production. Growing use of substitutes of petroleum products can also put negative impact on the oil demand.”
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