During an open dialogue in the Federation Council, Deputy Prime Minister Alexander Novak stated that in 2023, Russia’s oil exports went down by 3.3% to 234.3 mln tons, as opposed to 242.2 mln tons in 2022. According to the data presented by Alexander Novak, oil and gas condensate production reached 530.6 mln tons in 2023, or 0.9% lower than in 2022.
Primary oil refining increased by 1.2% to 275 mln tons in 2023, as opposed to 271.9 mln tons in 2022, according to Alexander Novak’s presentation. Petroleum production grew by 3.1% year-on-year to 43.9 mln tons, and diesel fuel production grew by 3.5% to 88.1 mln tons.
The Deputy Prime Minister also noted that the Russian Government had taken all necessary measures to supply enough fuel to the domestic market. Petroleum supplies grew by 7% and diesel fuel by 17% in January.
“Based on the experience of the late Soviet Union, we can tell that until oil production drops by about half, nothing horrible will happen,” notes Sergei Khestanov, economist and Associated Professor at the Russian Academy of National Economy and Public Administration (RANEPA).
Experts stress that the resource potential of the oil deposits is now significantly worse than in the late Soviet era. Oilfield service technologies can compensate for this problem. However, they are expensive; therefore, if oil prices drop, production quickly becomes unprofitable.