Oil could lose 95% of its value by 2050 – expert

Credit: Evgeniy Biyatov | RIAN

Oil and gas stocks could lose 95% of their value by 2050, while coal is likely to be completely phased out, head of FinExpertiza consultancy Yelena Trubnikova said at the Go Global Summit.

Commodities account for one-third of Russian exports today; we are constantly boosting supplies, which are bringing less and less income. Meanwhile, by 2050, oil and gas may lose 95% of their value. Coal is likely to be completely phased out. And this is not so far away,” Trubnikova noted.

According to her, the volatility of hydrocarbon prices combined with an increase in shipments will lead to an inevitable decline in Russia’s export earnings.

Russia needs to develop exports of other goods and find new points of growth. The country already has such growth points: for example, Russia is now the world leader in wheat exports. Wheat accounts for 70-80% of Russia’s food exports, followed by fish. Timber exports are faring well enough, with the biggest revenue coming from treated wood shipped to the CIS countries,” the expert added.

Weapons are also a major export product, she pointed out.

However, we have reached the ceiling in this area because the global arms market is saturated, with ever growing competition. Russia is losing ground: even now, we are seriously behind the United States, the world leader in arms exports,” she concluded.

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