Oil and gas prices could rise sharply if investments in hydrocarbon production cease. This is the reason given by the head of Gazprom Neft, Alexander Dyukov, quoted by TASS.
“Without investment in traditional resources, we run the risk of arriving at a situation of shortage and a sharp rise in energy prices,” he said. Dyukov also added that the share of gas in Gazprom Neft’s hydrocarbon production in the coming years could reach 45 percent.
At the end of February, it became known that Russia’s oil and gas revenues collapsed by 2.3 trillion rubles in 2020 (or by 30.4 percent). Their share in total income decreased from 39.3 to 28 percent. According to the calculations of the Accounts Chamber, the price of a barrel of Urals oil averaged $ 43.3 against $ 63.9 in 2019.
Following the OPEC + meeting on March 4, the countries agreed not to increase oil production by 500,000 barrels per day in April. In turn, Saudi Arabia will maintain its additional one million barrels per day cut. In addition, the countries of the alliance agreed on an increase in oil production in Russia in April by 130 thousand barrels per day.