Oil in Russia will be over in 28 years. What to do?
Today the head of the Ministry of Natural Resources and Ecology Sergei Donskoi officially announced the results of his department estimated proven of oil reserves in Russia. The conclusion is very disappointing – in Russian oil will be over in 28 years at current production levels and the lack of new fields of geological prospecting.
In addition, the Minister of Natural Resources has warned that production rates will begin to decline sharply in 2020 and this is due to the fact that old and highly profitable field fully exhausted themselves . As a result, if we do not take action on the exploration of new deposits and the improvement of production technology, Russia in 2044 could become from the largest supplier to the buyer of oil.
Authorities are waiting for such assessments at the largest Russian petroleum companies – Rosneft, Lukoil and Gazprom, as well as to exit the program from this situation. However, the Russian commodity giants are in no hurry to pay attention to the MEP forecast. At the moment they are mostly interested in the price of oil and current production volumes. These companies are trying not to look in the future 20-30 years.
The problem of exploration is that the main work in the last decade was made by foreign experts, mainly from Norway and the USA. Due to the fact that these countries have imposed sanctions on the Russian energy sector, companies are prohibited to participate in the development of new fields in our country. Our own large geological surveys have not been conducted since the late 80’s and for this reason it is necessary to re-establish and develop exploration, and this will be engaged in the Russian government in the near future.
What is the role of oil in the Russian economy, you can read in the expert report of Vladislav Inozemtsev.