The Ministry of energy estimated the prospect of a decline in oil production of Russian companies

В Минэнерго оценили перспективы снижения добычи нефти для компаний РФ

The rise in oil prices, which will occur as a result of implementation of the agreements of the oil-producing countries to reduce output, with a large margin can cover the losses of Russian companies from reducing production, and revenues will increase by approximately 600 billion rubles, said the head of the Directorate “Analytical center of energy” Ministry of energy of the Russian Federation Pavel Sorokin.

OPEC on Wednesday reached an agreement on the reduction from 1 January 2017 oil production by 1.2 million barrels per day — up to 32.5 million. The agreement implies participation of countries outside the cartel. Their production needs a total decline of 600 thousand barrels per day, of which a decrease of 300 thousand barrels per day agreed to provide Russia. The agreement is for six months with possibility of extension for another six months.

“The growth rates can with a large margin to cover the losses of Russian companies from the decline in production. In addition, without a deal, the price of oil could fall to $ 40 per barrel if not lower. In the current situation each additional $ 5 to the price per barrel ensure an increase of daily revenue of $ 55 million. Even with the strengthening of the national currency the increase in revenues in the budget of the Russian Federation will be about 600 billion rubles. Our company as a whole support this initiative”, — quotes the words energy, Sorokin in his blog on the social network Facebook.

According to the expert, Russia has acted in the role of “consolidator” in the process of reaching an agreement. “Was done enormous work on the development of negotiating positions, which not only opened the maximum potential for Russia’s participation in the transaction, but also contributed to the rapprochement of positions within OPEC, all the way to the achievement of this historic agreement until the last moment”, — said Sorokin.

The main risk factors in the implementation of the agreement to reduce oil production, the expert called compliance by its participants, as well as the possible increase of production by the producers of shale oil.

“However, many countries-participants of the agreement are now at a historic peak of production, and maintaining this level comes at a cost, so the gain in the price a small more substantial decline in production. As for shale producers, this factor will be with us for a long time. Increase the efficiency of production of shale oil is about 12-15% per year. The reduction of the breakeven point is a continuous process, but to focus only on him and not to take any steps to stabilize the situation on the market, in my opinion, it would be wrong,” — said Sorokin.

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В Минэнерго оценили перспективы снижения добычи нефти для компаний РФ