Cost of Production of Russian Oil Is $2 per Barrel
March 23, 2016
According to the Deputy Minister of Energy of Russia Kirill Molodtsov, "the average production cost of a barrel of Russian oil is about $2. The cost of producing hard-to-recover and offshore reserves is above $20. The rates also vary significantly depending on the cycle of mineral development. With declining production, the cost is higher, since at the same cost level less oil is extracted," - said the official.
Earlier the president of "Rosneft" Igor Sechin said that because of financial speculators oil prices could fall to $10 per barrel. According to him, the annual decline in average daily production in the world is estimated at 3 million barrels a day. Meanwhile, according to Sechin, the excess of supply of oil over demand is between 1.5 and 1.7 million barrels a day, according to RBC.
Saudi Arabia is ready to sign an agreement on limiting oil production, even if Iran does not.
