Russia draws up a new oil strategy: "before the end of the oil age, all that can be sold will be sold"

Russia's new master plan for the development of the oil industry before 2035 should consider the possible reduction of global oil demand other issues, delaying the development of the Arctic in order to create the easiest oil field to exploit, the independent website reported on April 15. On the eve of the Russian government's approval of the plan, the State Duma (lower house of parliament) introduced relevant work priorities to people in the oil industry on the 14th. The main idea of this plan is: in the context of energy transition, everything that can be sold should be sold.

"The energy transition around the world has only begun, it's moving forward at full speed," said Pavel zavaline, chairman of the State Duma Energy Commission

Last year, the world's new installed capacity of thermal power generation was 40 GW, while the new installed capacity of renewable energy generation was 150 GW in the same period.

In another 30 years, no one will want Russian oil, he said. "Oil companies are moving oil companies to energy companies," he cautioned. As a result, many of the world's banks are no longer financing oil projects. "

According to the report, the hydrocarbon property of world energy will last at least until 2035. This means that Russia still has time to adjust its industries change its economic direction.

The goal of the adjustment is to monetize the existing reserves resources to a large extent. "To extract sell everything, our task is to turn the extracted things into money put the money back oil gas exports into the direction of the economy that is about to grow," zavaline explained. Our [oil] companies will become more more like energy companies rather than oil companies. "

According to the new master plan for the development of the oil industry, the peak of oil demand will appear before 2030-2035. The novel coronavirus pneumonia epidemic has played a role in boosting the negative impact of global consumption on oil consumption, which may last until 2023 to 2024.

"The long-term extensive growth of the oil industry over the past 25 years is close to the depletion of its natural potential," the draft plan says In addition, the EU may impose cross-border carbon controls on hydrocarbon imports after 2025. Therefore, the Russian oil industry should be ready for the world oil market to enter a state of long-term depression declining demand. This will only intensify the international competition for the sales market, but also reduce the investment attraction of the oil industry.

The draft plan predicts that Russia may explore more oil reserves in the future. On average, the proven oil reserves should be 1.2 times the oil production. "In order to keep oil production at a stable level by 2035, we need to expand oil reserves to more than 10.4 billion tons between 2021 2035," the draft said

According to the report, the main growth areas of Russian oil reserves will continue to be West Siberia, Lena Tunguska, Caspian coast, Ziman berchaola Volga ural oil gas accumulation zones. In addition, the development of continental shelf oil gas fields will also bring more reserves growth.

The report also pointed out that at present, Russia has studied 60% of the domestic oil reserves that can be exploited technically. This part of the total reserves of 17.2 billion tons, 36% to 64% of which can still bring profits. The contribution of new oil fields to total oil production will continue to expand. Andong rubzov, director of the oil natural gas processing Department of the Russian Federal Ministry of energy, said in a speech at the State Duma Energy Commission on the 14th that the share of new oilfield production will reach 21% to 25% by 2025 34% to 43% by 2035.

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Source: International Petroleum Network