Page 101 - RusRPTOct23

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
Russia has outlined its production goals for 2023, with plans to produce 527mn tonnes of oil, a slight decrease from the 535mn tonnes produced in 2022. Deputy Prime Minister Alexander Novak provided insights into these projections, highlighting factors such as Russia's collaboration within the OPEC+ framework and other considerations.
Novak noted that despite external sanctions, Russia managed to increase its oil production by 2% in 2022 compared to the previous year. However, for 2023, the country anticipates a modest reduction in oil production to 527mn tonnes.
In terms of oil exports, Novak emphasized that the redirection of supplies will primarily target the Asia-Pacific region, with a focus on countries like China and India.
Regarding gas production, Russia has maintained stable operations throughout the year. Since the beginning of 2023, the country has already produced 410bn cubic meters of gas. The goal for the year's end is to reach a total production of 642bn cubic meters, reflecting Russia's commitment to maintaining a robust gas industry.
9.1.1b Oil sector news
● Production
American oil production will likely reach a remarkable milestone in the fourth quarter, with Rystad Energy expecting a record of more than 13mn barrels a day. For a country that’s agonized over shortages for 50 years, it’s an astounding number — the highest of any country in the world and more than double the level of a decade ago. Yet it hasn’t been enough to ease prices. Expensive gasoline — up 7% since July to an average of $3.85 per gallon — threatens to stoke inflation, which is the central economic challenge for President Joe Biden as he seeks reelection next year. For all of US shale’s efforts, OPEC and its allies have a firm grip on the market. Global demand reached unprecedented levels of 103mn barrels a day earlier this year and supply from outside the cartel is suffering from years of underinvestment. Saudi Arabia’s voluntary cuts to the end of the year have sent crude prices
101 RUSSIA Country Report October 2023 www.intellinews.com