A lot depends on the Deposit type and cycle of exploitation of mineral resources
Deputy Minister of energy Kirill Molodtsov said that Russian companies spend for extraction of one barrel of oil about two dollars. The Russian oil industry “feels confident” even in conditions of low prices for “black gold”, the official said.
photo: Gennady Cherkasov
The cost of oil production in Russia is $ 2 per barrel, said in an interview to “Rossiyskaya Gazeta”, the Deputy head of the Ministry of energy. The cost of production offshore and tight oil reaches $ 20 per barrel.
“The indicators also vary significantly depending on the cycle of mineral development. With dropping production cost is higher because for the same level cost less oil is extracted,” explained Fellows.
The Deputy Minister also said that the Russian oil industry “feels confident”, she’s got a safety margin, so the total investment will remain at the level of the previous year and will amount to 1.4 trillion rubles.
Energy Minister Alexander Novak said earlier that oil production in Russia will remain profitable even with the drop in oil prices to 15 dollars per barrel, reminds RIA Novosti. The head of Ministry of natural resources Sergey Donskoy said that proved oil reserves in Russia at the current level of production will only last for 28 years. Without new discoveries the extraction of conventional reserves begin to decline from 2020.
Due to the fall in oil prices the OPEC countries and Russia have reached a preliminary agreement to freeze production at the level of January 2016. The main enemy of this agreement is Iran. The country intends to increase oil exports until you reach the level that was before the imposition of sanctions and embargoes.
Tatiana Gorina
