Earth Equity News

Has Russian Oil Output Peaked? By Fred Weir, CSM, May 28, 2008. "The Kremlin often touts Russia's image as an 'energy superpower,' but now the country's oil production is declining. Some say Russia may have already reached peak oil output... As the world's second-largest oil exporter, Russia joins a growing number of top oil suppliers wrestling with how to address declining or peaking production. Like Venezuela and Mexico, Russia is heavily dependant on oil, which accounts for more than two-thirds of government revenue and 30% of the country's gross domestic product. Now, Moscow is trying to remedy a situation caused in part by outdated technology, heavy taxation of oil profits, and lack of investment in oil infrastructure... After rising steadily for several years to a post-Soviet high of 9.9 million barrels per day in October, Russian oil production fell by 0.3% in the first four months of this year, while exports fell 3.3% -- the first Putin-era drop. Russia's proven oil reserves are a state secret, but Oil & Gas Journal, a U.S.-based industry publication, estimates it has about 60 billion barrels -- the world's eighth largest -- which would last for 17 years at current production rates. Energy Minister Viktor Khristenko recently admitted the decline, but suggested it might be overcome by fresh discoveries in under-explored eastern Siberia or in new Arctic territories recently claimed by Russia."