The Russian surge
Rising oil production in the past two years defied expectations. The market should expect more of the same in 2017
Russian oil output has shocked the market over the past two years. Many analysts expected depletion at Soviet-era fields in Western Siberia - home to more than 60% of the country's production - to lead total supply lower. Weak oil prices, an economic crisis and sanctions would also conspire to crimp production. Wrong. In 2015, Russia's producers pumped 10.7m barrels a day, a 1.4% rise on the year. In 2016, the growth accelerated and will come in at 2%, leaving output above 11m b/d, a post-Soviet record. The outlook for 2017 is similarly rosy. Production will stay slightly above 11m b/d. Three reasons explain why. First, upstream investments made when oil prices were higher, especially in so-
Also in this section
23 April 2026
The addition of an oil pipeline to the Power of Siberia 2 gas project could ensure deliveries of Russian oil to China, materially shorten logistics lines between West Siberia and final customers, and—amid disruption in the Strait of Hormuz—offer a land-based export route that reduces exposure to maritime chokepoints
23 April 2026
There is a clear push to bolster exports to Asia amid uncertainty around its North American neighbour, but there are limits to the benefits from the energy crisis
23 April 2026
Shell made the play-opening discovery in Namibia’s Orange basin back in 2022, but its next well could decide whether the project can actually be commercialised
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
