Russia is preparing for production of “difficult oil”

Россия готовится к добыче «трудной нефти»

Open in the Soviet era of cheap oil deposits in Russia are almost exhausted.

About it today, speaking in the Federation Council of the Russian Federation, said Deputy Prime Minister Dmitry Kozak, the correspondent “Politnavigator”.

“Cheap, open even in the Soviet era stockpiles, has allowed us to hold leading positions in the production and export of oil in the world and charge some of the highest rental taxes from mining companies – 68% of revenues. However, the overall assessment of the industry experts today, we are approaching the peak of production. The resource of old fields are depleted, an increasing proportion of stranded. Respectively goes up, the cost of production,” said Kozak.

According to him, if the situation in the industry will not change oil production will reach a peak of 570 million tons of oil by 2021, then begin the decrease. By 2035, Russia may lose up to 40% of production volume.

To prevent this the government intends to reduce taxes for oil producers. Decided to hold the 2019 inventory of all fields and to assess the economic feasibility of their development.

“The results we will gain an understanding of what field you need to reduce the fiscal burden. Agreements with companies will include the obligation to use Russian equipment, including digital. Technology will create polygons for the accelerated development of new technologies for the exploration and production of difficult oil” – promised the Deputy Prime Minister.