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Trending Channel – Russia was the largest producer of oil in 2012
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Russia was the largest producer of oil in 2012

Russia was the largest producer of oil last year

Russia was the largest producer of oil in the world in 2012, surpassing Saudi Arabia, but natural gas production declined in terms of lower sales in Europe, writes AFP.

Russia’s oil production rose by 1.3% last year compared to 2011, to 518 million tons (10.4 million barrels per day), according to the Russian Ministry of Energy. Russian government wants to maintain production above the level of 10 million barrels per day by 2020. oil and gas sector, are dominated by state-owned companies, contributing about half of Russia’s budget revenues.

But analysts do not believe that last year’s performance could be repeated in 2013, as 80% of Russia’s oil production comes from mature fields, that are from long while in operation. Furthermore, although Russia has surpassed Saudi Arabia in the top oil producers, the title was won in terms of the maximum extraction capacity. Unlike Russia, the United Arab has the ability to increase production to adapt quickly to higher demand when the global economy returns to growth, or in the case of turbulence in the Middle East.

Saudi Arabia has very limited extraction activities to stabilize crude oil prices, which reached record levels last year. Brent oil price stood on average at $ 111 per barrel in 2012.

Rosneft, the state-controlled company, represented 22.8% of the Russian market of oil last year. According to the experts, Rosneft share will exceed 40% this year, after taking full control of the company TNK-BP from British group BP and a consortium of Russian investors. Following the transaction, which will probably be completed in the first half of the year, Rosneft will become the largest company listed on “oil and gas”,  after his production exceeded U.S. group ExxonMobil.

Gazprom produced less gas, due to lower demand in Europe

In contrast to the oil, gas production in Russia fell by 2.3% to 655 billion cubic meters. Giant Gazprom, witch is state-controlled, announced a production of 478.8 billion cubic meters, well below the result of 513.1 billion cubic meters in 2011.

Sharp decline highlights the essential role played by exports in Europe and the former Soviet states, regions witch now registered the slowest growth in the world, for Gazprom businesses. The group hesitated to move out production of liquefied natural gas, which could sell in emerging markets in Asia and South America.

European Union, which covers about 30% of gas consumption by imports from Russia, made it a priority to diversify gas suppliers, in the idea of ​​reducing their dependence on Moscow policy.

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