The petroleum industry in Russia is one of the largest in the world. Russia has the largest reserves, and is the largest exporter, of natural gas. It has the second largest coal reserves, theeighth largest oil reserves, and is the largest producer of oil. It is the third largest energy user.
Russia is the largest oil producer in the world, producing an average of 9.93 million barrels (1,579,000 m3) of oil per day in 2009 for a total of 494.2 million tons.It produces 12% of the world's oil and has a same share in global oil exports. In June 2006, Russian crude oil and condensate production reached to the post-Soviet maximum of 9.7 million barrels (1,540,000 m3) per day. Exceeding production in 2000 by 3.2 Mbbl/d (510,000 m3/d). Russian export consists more than 5 Mbbl/d (790,000 m3/d) of oil and nearly 2 Mbbl/d (320,000 m3/d) of refined products, which go mainly to the Europe market. The domestic demand in 2005 was 2.6 Mbbl/d (410,000 m3/d) in averaged.It is also the main transit country for oil from Kazakhstan.
The Russian oil industry is in need of huge investment. Strong growth in the Russian economy means that local demand for energy of all types (oil, gas, nuclear, coal, hydro, electricity) is continuing to grow.
Oil reserves in Russia
There are several different estimates of proven oil reserves in Russia. Most estimates include only Western Siberian reserves, exploited since the 1970s and supplying two-thirds of Russian oil, and not potentially huge reserves elsewhere. In 2005, the Russian Ministry of Natural Resources estimated that another 4.7 billion barrels (0.75×109 m3) of oil exist in Eastern Siberia.
Following the collapse of the former Soviet Union, Russia’s petroleum output fell sharply, and has rebounded only in the last several years. Russia reached a peak of 12.5 million barrels per day (1.99×106 m3/d) in total liquids in 1988, and production had fallen to around 6 million barrels per day (950×103 m3/d) by the mid-1990s. A turnaround in Russian oil output began in 1999, which many analysts attribute to the privatization of the industry. Higher world oil prices, the use of Japanese technology, and the rejuvenation of oldoil fields also helped. By 2007 Russian production had recovered to 9.8 million barrels per day (1.56×106 m3/d), but was growing at a slower rate than 2002-2004. In 2008, production fell 1 percent in the first quarter and Lukoil vice president Leonid Fedun said $1 trillion would have to be spent on developing new reserves if current production levels were to be maintained. The editor in chief of the Russian Petroleum Investor claims that Russian production had reached a secondary peak in 2007.
In 2007, Russia produced roughly 9.8 million barrels per day (1.56×106 m3/d) of liquids, consumed roughly 2.8 million barrels per day (450×103 m3/d) in liquids, and exported (in net) around 7 million barrels per day (1.1×106 m3/d). Over 70 percent of Russian oil production was exported, while the remaining 30 percent was refined locally. In early 2008 Russian officials were reported to be concerned because, after rising just 2% during 2007, oil production started to decline again in 2008. The Russian government proposedtax cuts on oil in an attempt to stimulate production.
By 2011, Russian oil production had increased to 10,540,000 bbl/day. It is the largest producer and exporter of oil in the world (other than the Arab League, a group of 22 countries).
