The Russian Federation is the largest exporter of natural gas. She has the second largest coal reserves. The press is increasingly debating that the Russian Federation has long been on the energy “needle”. Therefore, now even ordinary inhabitants have become interested in how much oil Russia sells per year. The Russian Federation ranks eighth in the world in oil reserves, but the volume of production exceeds that in any country in the world. In this article we will try to figure out how a sharp drop in prices for "black gold" affected the country's economy. We will also discuss the export industries of the Russian Federation, the place of hydrocarbons in its structure, expert forecasts on the depletion of natural resources and the specifics of the government’s energy policy.
How much oil does Russia sell per year
According to December 2015, the Russian Federation produces an average of 10.83 million barrels. This is 12% of world production. Moreover, the state is only in eighth place in terms of reserves. Crude oil exports from the Russian Federation are still the same 12%. In 2015, 396 million tons were sold. Suppose that the price on the market is set at $ 30 per barrel. Consider how much oil Russia sells per year. We get the size of export revenue. This is 87 billion, another 30 can be earned on gas.
Foreign trade of the Russian Federation
On average, from 1997 to 2015, the amount of exports and imports of Russia amounted to 9112.95 million US dollars. The record high was in January 2012, the lowest - in February 1998. If we talk about how much oil and gas per year Russia sells, then the answer will be - 58% of total exports. An important article is also the export of timber. What does Russia sell except wood, oil and gas? Other export items include metals (nickel, iron), chemical products, machinery and military equipment. The main trading partners of Russia are China, Germany and Italy.
How many years will the oil reserves last?
The scientific and technological revolution and progressively increasing demand more and more energy, but does a simple person think that the resources are by no means infinite? At the sunset of the USSR, teachers in Soviet schools said that black coal would last for 150 years, brown coal for 650, oil for 200, gold for 100, and diamonds for 80. However, by the beginning of the 2000s, it became clear that consumption natural resources dramatically increased. The needs of mankind 1.5 times exceeded the planet's ability to renew fossils. At the same time, the inhabitants of developed countries use much more resources than poor countries. Although it is the latter that control 2/3 of the world's oil reserves. Russia in this indicator is in 8th place. At the current level of production in the Russian Federation, it will be enough for 21 years, in the world - for 50 years. As for gas reserves, here Russia comes first. At the current level of production, it will be enough for 80 years in the Russian Federation, for 60 - in the world.
Why is oil getting cheaper?
It turns out, according to experts, the reserves of “black gold” in the world will last only 50 years. It is less than a century, but why, then, is the price so low on the market? According to NEF chief economist James Medway, this situation has quite objective reasons. And the main one is the so-called shale revolution. The uniqueness of the new fuel lies in the fact that at first it was not taken seriously by governments, which is why it was taken over by private companies. Global overproduction of oil arose because huge national corporations did not take into account the emergence of new players on the market, who have their own interests. After the largest investment bank Goldman Sachs published its forecast in September 2015 that “black gold” could drop in price by up to 20 US dollars per barrel, all attention was focused on the Russian Federation. It seemed that the whole world was trying to calculate how much money Russia was losing due to falling oil prices. However, the disaster has not yet happened. The budget for 2016 includes the price of $ 50 per barrel, in reality we have only 30. Considering the volume of exports, about 200 million US currency units are lost on the day of the Russian Federation.
How much did Russia miss?
Financial analysts, having analyzed the situation with record low oil prices and economic sanctions, calculated that the Russian Federation will lose about $ 600 billion from 2014 to 2017. At the same time, they based their research on the price of $ 50 per barrel. Losses of foreign direct investment will also make themselves felt. According to them, residents need to wait for the next round of price increases and a jump in the dollar.
Meanwhile in the world
Russia receives more than half of its income from oil. However, the shale industry of the United States was far more affected than the Russian Federation. According to experts, it is cost-effective at a price of 70-77 dollars per barrel. However, already in the middle of the 21st century, experts expect a sharp decrease in the energy balance. The main consumers of oil may be third world countries, which may not have time to switch to alternative technologies. Therefore, for the 21st century, “black gold” is definitely enough, and its fair price will fluctuate at the level of 70-100 dollars
Energy policy of Russia
For the period until the end of 2020, the Russian Federation has a strategy that came into force in 2003. It sets the following priorities for the country:
- Sustainable development.
- Increased energy efficiency.
- Reducing the negative impact on the environment.
- Energy and technological development.
- Work on efficiency and competitive advantage.
In July 2008, the Russian president signed a law under which the government can produce oil and gas on the continental shelf without a tender. This aroused the indignation of the opposition. In February 2011, Russia signed an agreement with China, according to which, in exchange for a $ 25 billion loan, it will supply large volumes of crude oil in the next 20 years.
Industry challenges
Oil and gas account for 60% of Russian exports and 30% of GDP. The state produces 10.6 million barrels per day. How much oil does Russia sell per year? It covers about 12% of global needs. The Russian economy is highly dependent on hydrocarbon exports. The Russian Federation also uses its position as a supplier of oil and gas in foreign policy. The EU is working to reduce its energy dependence on Russia. Since the mid-2000s, the Russian Federation and Ukraine have had several conflicts during which gas supplies to Europe were cut off. In addition, the construction of the Nabucco gas pipeline was discontinued . Today, EU countries still have not overcome their energy dependence. As for the fair price of oil, experts have not yet reached consensus on this issue.