Energy Ministry insists that oil production rate is maintained in 2015-2016

Russia’s Energy Ministry sees no reason for revising the oil recovery forecasts in Russia in 2015-2016. Talking to reporters, Alexey Teksler, First Deputy Minister of Energy, said the recovery will total 533 million tons of oil annually in 2015-2016. “We hope to maintain that level,” he said.

The recovery reduction will start in 2017. It may make up about 10 million tons annually. The deputy minister explained that about three dozens of projects (licenses) have been postponed.

The ministry’s conservative forecast of oil recovery in 2017 is 527 million tons.

The final version of the forecast says the oil recovery in 2015 will total 531 million tons, which is 0.8% more than in 2014. Gas recovery forecasts are 626 billion cubic meters (down 2.2%). As to 2016, the Government of Russia has envisaged 533 million tons of oil recovery and 635 billion cubic meters of gas recovery in the state budget 2016.

Earlier Deputy Prime Minister Arkady Dvorkovich said in case the oil prices remain low for a long period of time, the oil recovery in Russia may fall by 5%-10%.  He said the recovery may fall as the investment programs will decrease under influence of the low oil prices.