Economy 05-10-2018

Moscow and Riyadh have the greatest potential to increase oil extraction

Russia and Saudi Arabia have the greatest potential to increase oil production among the other signatories of the oil cut, Russian Energy Minister Alexandr Nóvak told Sputnik.

"Russia and Saudi Arabia now occupy the top positions in oil extraction, we produce approximately the same amount, about 11 million barrels per day [b / d], and of course, the greatest potential is Saudi Arabia and Russia," he said. in the margins of the Energy Week of Russia held in Moscow from October 3 to 6.

He added that within the framework of the agreements, the two countries are the ones with the most possibilities to increase oil extraction.

Nóvak said they also have the potential to increase oil extraction in the UAE, Kuwait, Iraq and, to a lesser extent, other countries.

Russia and Saudi Arabia were the key players and initiators of the OPEC + agreement but achieving the common goal, he said, is possible only through joint cooperation of all involved.

"The total volume of oil extraction of the 14 countries of OPEC amounts to about 32 million b / d or a third of the world volume, if we add Russia and other countries outside OPEC, this volume already reaches 50 million barrels, "he recalled.

According to the results of the first two months after agreeing to increase oil extraction by one million b / d, 12 of the 24 OPEC + countries increased production, while in the other members of the agreement, extraction continued to decrease.

Total extraction increased in that period by some 500,000 b / d, he said.

At the end of 2016, the nations that make up OPEC and 11 producers outside the cartel, including Russia, agreed in Vienna to reduce joint production by 1.8 million barrels per day, starting from the level of October 2016.

The pact, which seeks to stabilize hydrocarbon prices, is in force until the end of 2018.

At the end of last June, when the agreed cut exceeded 50%, the parties set the goal of raising production by one million b / d.


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