Oil price will not grow – Tyumen Region governor

Credit: Sergey Rusanov | RIAN

The price of oil is unlikely to go up in the near future; so, to maintain economic growth, production costs need to be lowered, the Tyumen Region’s Governor Alexander Moor said at a news conference on Russian Oil and Gas Industry: Development Vectors and Main Industry Issues at TASS news agency.

“The main challenge facing oil and gas companies today is how to cut the cost of oil production. The fact is that the oil price will not rise in the near future, so they need to develop modern technologies to make production cheaper,” the governor said.

He added that the future lies in digitizing the oil industry and developing cross-cutting technologies. According to him, a number of research institutions are being established in the region today; one of them is Gazprom Neft’s oilfield development center.

Such institutions will in the future enable Russia to start creating added value at home rather than just boosting commodity exports,” the Governor said.

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