16 Mar, 2023 16:49
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Russian oil and gas production to shrink – minister
Output will slow as Moscow reroutes EU-bound flows to other markets, the official said
Russian oil and gas production to shrink – minister
© Getty Images / Bloomberg Creative
Russia projects a decline in its oil and gas output this year compared to 2022, Energy Minister Nikolay Shulginov said on Wednesday.
In February, Russia announced it would respond to Western sanctions by halting sales to countries imposing the so-called price cap, and voluntarily reduced oil production by 500,000 barrels per day. Moscow said the move was designed to restore market relations shattered by the scheme, which it branded “illegal.”
Addressing the Russian Parliament, Shulginov said that for 2023 he expected “oil production levels to be slightly lower, because of the voluntary reduction in output.” The minister added that “gas production volumes will continue to decline, both due to the abandonment of the European market and the timing of the rerouting of energy flows to the East.”
Russia’s decision to reduce its oil production this month will help balance the global oil market, which is in a surplus now, Alexander Dyukov, the chief executive of Russian oil company Gazprom Neft, a subsidiary of Gazprom, said last month.
Oil production in Russia rose to 535.1 million tons last year from 524.5 million tons in 2021. Gas production dropped to 674 billion cubic meters (bcm) in 2022 compared to 763 bcm in the previous year.
In January Russia’s oil exports surged to an all-time high previously reached in February 2020 despite the Western embargo on Moscow’s seaborne crude as customers were rushing to boost their stocks of the commodity, a report by the International Energy Agency showed.
Meanwhile, other major oil producers like Saudi Arabia and Algeria have warned that Western sanctions such as the price cap on Russian oil will spark uncertainty and disrupt global trade flows.
(https://www.rt.com/business/573093-russian-oil-gas-production-drop/)
Eu leaders discuss the price caps right after they place the 10th sanction package of Russia, which had no effect on Russia.
Ursula, “Lets put a price cap on their gas and oil so we can afford it since all EU country economies are sinking!”
Minister says, “I’m pretty sure thats not a good idea, Russia said they wouldn’t sell to us if we do it. And we really need their gas and oil.“
Ursula says, “nonsense, they are on their knees to us or will be soon, lets cap the amount we pay”.
Minister, “how are they on their knees, their economy is doing 4x better than us and they are getting major contracts with Asia and India?”
Ursula “Trust me I know how to deal with Putin!”
Minister, “This is stupid!”
The very next day the minister runs into Ursula’s office, “did you hear what happened?”
She says, “what?”
Minister, “Russia blew up any of their last remaining pipelines to EU so they can never be threatened again”