Russia: Production to rise, but more slowly

AFTER SPECTACULAR gains in 2003, it looks as if Russian oil output will continue to climb this year and in the coming decade, albeit at a more moderate pace. But the government is likely to demand a larger share of the windfall gains reaped by producers thanks to fast growth and high world oil prices. According to preliminary results, oil production soared by 11% last year, averaging 8.4m barrels a day (b/d), compared with 7.6m b/d in 2002. By December, output had reached 8.8m b/d. Most of the extra oil is coming from fields in western Siberia, where the application of sophisticated enhanced oil-recovery technology at established developments in recent years has yielded positive results. It