Russia has 80 billion barrels of oil in its reserves and exports 10 million barrels of oil a day
Bond yields climbed after Russia seized the Crimea peninsula in Ukraine in 2014 The conflict led to Western sanctions against Russia and a collapse in the price of oil The resulting economic crisis sent Russian bond yields up to 11 5% Russia turned to China and other Asian countries for financing
WHY DID RUSSIA BECOME AN OIL EXPORTER?
Russia has the third largest proven oil reserves in the world and is the second largest oil exporter A series of discoveries in the 1960s and 1970s in Western Siberia made Russia an oil producer However, Soviet planners and engineers did not build a pipeline to export the oil and gas In the 1980s, they did not have the technology to develop new fields The Soviet Union ended its oil exports in 1991
Former Soviet oil fields began exporting oil and gas again after the collapse of the Soviet Union Russia became an oil exporter in 2004
Russia exports almost all of its oil and gas It supplies about 10% of the world’s oil and about 30% of the world’s natural gas Russia has developed a pipeline system to export oil and gas to Western Europe, Asia, and other parts of the world
Russia’s oil exports have grown Oil exports reached a record of 10 53 million barrels per day in October 2018 Russia’s natural gas exports have been relatively flat
WHY DID RUSSIA BECOME AN OIL IMPORTER?
Oil production in Russia has fallen since the collapse of the Soviet Union Russia produced 10 63 million barrels per day in 2015 Russia’s oil exports fell to 5 13 million barrels per day in 2015
Russia’s oil production fell because of the collapse of Soviet oil fields and lack of investment in new fields Russia has increased its oil production since 2015 Oil production has climbed to 10 86 million barrels per day in 2018
Russia’s natural gas production has fallen more quickly than oil production The Soviet Union used to export natural gas It became an importer in 2008
WHY HAS RUSSIA INCREASED ITS OIL PRODUCTION?
In the early 2000s, Russian oil production declined But the Russian government began to increase its oil production in the 2010s Most of the growth in oil production has come from Western Siberia
why Will Development Of Oil Fields In Siberia Be Important Investments
Russia has abundant oil fields in Siberia, and they can be developed The country has the second largest oil reserves in the world, and the energy industry accounts for 30% of the country’s gross domestic product
According to the U S Energy Information Administration, Russia has the world’s largest reserves of oil and gas
The Kremlin has also promised to develop Siberia’s oil and gas fields in order to boost crude production
The country's economy is heavily dependent on oil, and the government has planned to develop new fields in order to reduce its dependence on oil exports
The country’s oil production has fallen from a peak of over 10 million barrels per day to below 10 million barrels
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