Template-Type: ReDIF-Paper 1.0
Author-Name: Bobylev Yuri
Author-Name-First: Yuri
Author-Name-Last: Bobylev
Author-Workplace-Name: Gaidar Institute for Economic Policy
Title: The oil and gas sector in Russia in 2019
Abstract: The oil and gas sector is among the basic ones of the Russian economy and is playing an important role in the income generation for the state budget and Russia’s trade balance. Implementation of the OPE, Russia and a number of other countries agreement on the production cut with a simultaneous global crude oil demand growth in 2019 has resulted in the world crude oil prices stabilization in the range of $60–70 per barrel. In 2019, the volumes of crude oil production peaked for the entire post-Soviet period and the extraction of the natural gas hit an all-time high. Under the effect the tax maneuver in force in the oil industry, the crude oil refining volumes have stabilized and significantly increased the refining depth, production of fuel oil and its exports have contracted. March 2020 revealed a crucial discrepancy between the positions taken by Russia and the OPEC member states regarding the deal parameters for the subsequent period. Hence, there were no new agreements, the current deal was not extended and Saudi Arabia notified about the intention to ramp up production. In the wake of coronavirus pandemic and a plunge of the global oil demand the crude oil prices have collapsed.
Classification-JEL: L71, L72
Keywords: Russian economy, oil and gas sector, oil production, oil prices, oil and gas export
Creation-Date: 2020
Revision-Date: 2020
Length: 12 pages
File-URL: https://www.iep.ru/files/RePEc/gai/ppaper/ppaper-2020-1050.pdf
File-Format: application/pdf
File-Function: Revised Version, 2020
Handle: RePEc:gai:ppaper:ppaper-2020-1050