Invest or consume? This very good NYTimes article discusses the search for government revenue in Russia vs. long term oil production: http://www.nytimes.com/2016/03/24/world/europe/russia-light-on-cash-weighs-risks-of-a-heavy-tax-on-oil-giants.html
“Things have become so tight, insiders say, that the Kremlin is considering cracking open the one piggy bank that was always considered sacrosanct, one that carries long-term consequences for the Russian economy: taxing the funds that oil companies need to invest to ensure future oil production.”
Expecting a peak in production next year:
““The situation is very serious,” Mikhail I. Krutikhin, an energy analyst at the consultancy RusEnergy, said in a telephone interview. He estimates that Russia’s oil production, now at a post-Soviet record high of 10.8 million barrels a day, will peak at some point next year and begin a long-term decline.
“The only question is the slant of this line,” he said. “The oil companies are not investing at all in exploration of new deposits because profits on these projects will only come in 10 years. Nobody will invest in these projects.””
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