Putin: in 2015, the oil industry of the Russian Federation has shown steady development

Putin: in 2015, the oil industry of the Russian Federation has shown steady development


MOSCOW, 1 March. The oil industry of Russia in 2015 has shown steady development, reaching record levels at 534 million tonnes of oil, up 1.4% over the 2014 level. This was stated by the President of the Russian Federation Vladimir Putin at a meeting with representatives of the oil industry.

“By the end of 2015 the Russian oil industry has shown that it is steadily growing, – said the head of state. – Last year produced a record 534 million tons, an increase of 1.4% compared to the year 2014”.

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The President stressed that the majority of the produced in Russia crude oil sent to domestic refineries. “More than half of all the oil produced in Russia is sent to domestic refineries for production of products with high added value. This increases the depth of processing of raw materials,” he said.

Putin urged to save the ongoing development of the oil industry. “Our goal is to preserve the stability of the oil industry, to ensure its ongoing development and long-term projects”, – said the President.

The President noted the positive role of government decisions on stimulation of oil production in Eastern Siberia, the far East and offshore, as well as for development of the fields of hard recoverable reserves. The head of state noted the improvement of the ecological situation in the industry. In particular, since 2012 the proportion of associated petroleum gas utilization increased from 76% to 88%. “It’s certainly a very good indicator,” he said.

Putin also reminded that in 2015 the volume of Russian exports of oil increased to more than 241 million tonnes, 9% more than in 2014.

Business agree with freezing oil

Russian business agree with the idea of freezing the level of oil production than Russia have practically agreed in the international arena, said Russian President.

“This (freezing the level of oil production) he (energy Minister Alexander Novak) and agrees almost agreed with its partners in the global market”, – said the head of state.

“And as the Minister reported, all of you agree with this proposal. Some are even more radical proposals,” he added, addressing the participants of the meeting.

Speaking about the dynamics of oil prices, Putin said that in 2015 the price of Urals crude has fallen about three times. “This is a very significant decline and substantial impact on the income of companies,” he said. The President noted that, despite this, capital expenditures of Russian oil companies by oil production in 2015 was 7.8% more than in 2014.

The influence of speculative factors and political risks to the market

Oil prices are influenced by both fundamental and speculative factors, said Vladimir Putin.

Background

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“We see how unstable the global market of hydrocarbons, – stated the head of state – it is influenced by fundamental economic factors, primarily referring to the slowdown of the global economy and speculative moments”. Putin concluded that “all this is felt in the market, including, of course, and political risks”.

Infographics


Oil prices over 40 years

Infographics