Prime Minister Vladimir Putin several times mentioned that the oil industry reached its peak. This was described as an ordinary event, although in reality it reflects recognition of strategic mistakes once made.
In 2011 the trend of gradual shift in investment activities of Russian companies towards upstream-projects abroad became vivid. The problem of offsetting declining production in Western Siberia is becoming more apparent.
Eastern Siberian and shelf projects may fail to comply with forecasted parameters. The state is carried away by creation of the export infrastructure as if ignoring problems accumulating in the production segment.
Meanwhile, the government’s general mood of dealing with the state budget’s dependence on exports of hydrocarbons remains, while the demand for financial resources for state authorities is rising amid a sharply deteriorated political situation. These resources can be provided only by the oil and gas industry. Being trapped it currently urgently needs investments and state regulation incentives. Yet, the sector is needed as a cash cow only.
A new report elaborates on the following issues:
Production results of the oil and gas industry
- Dynamics of oil and gas production
- Main changes in export policies
- Situation in geological prospecting
- Analysis of the new 60-66-90 system
- Continuation of the “patchwork” fiscal policy
Struggle for assets
- One of the most important consequences of changes in the political situation will be sharpening of struggle for undistributed assets, including deposits in the undistributed reserve
Domestic fuel market
- The year has been characterized by constant interruption of fuel supplies and growth in prices of crude and processed products
- Main reasons and real tasks of the state and large companies
Medium-term forecast of developments taking into account the future formation of a new system of state regulation of the sector and growing state problems
Authors of the report are leading experts in oil and gas industry.
Chapter 1. Preliminary Production Results
Chapter 2. Domestic Fuel Market
2.1. ÂReasons for Petrol Deficit and Growth in Prices of Oil Products
2.2. Domestic Gas Market: Struggle for Equal Profitability
Chapter 3. Taxation Regulation of the Sector
Chapter 4. Struggle for Production
Chapter 5. Changes in Export Policies
Chapter 6. Prospects of Developments