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Media: Russian Energy Ministry recognized the possibility of falling oil demand

2019-10-08T08:37:18.348Z

The Russian Ministry of Energy acknowledged that a slowdown in global oil demand could be replaced by a drop in consumption after the 2030s.



This was reported by the newspaper "Vedomosti" with reference to the updated draft of the Energy Strategy of Russia until 2035.

According to the publication, the draft strategy presented on September 21 predicted a slowdown in global oil demand after 2025, reaching a peak in consumption earlier than the 2030s. During the discussion of the project on September 24, it was clarified that the peak in oil demand will be in the 2030–2040s, and the decline after the 2040s.

It is indicated that the world's largest players, such as Statoil and Saudi Aramco, are already preparing to reduce demand for oil.

"The competition between oil and natural gas and power generation will intensify, this will limit not only coal demand, but also the growth in oil demand," the publication quoted Dmitry Marinchenko, senior director of the Fitch Corporation department.

He added that in terms of the full cycle costs, the projects of the Russian oil industry “look very good and lose only to the Middle East.”

“Operating costs and capital investments per 1 barrel of production do not exceed $ 15-20,” said Marinchenko.

According to him, Russian oil companies are still asking the state for benefits on existing projects to finance projects with high risks, which means that "the state takes upon itself the risks of profitability in the face of uncertain oil prices."

Earlier, the head of the Ministry of Energy of Russia Alexander Novak said that the agency notes a slowdown in oil demand growth, in 2019 it will increase by 1-1.1 million barrels compared to 1.5 million barrels in 2018.

Venezuelan Oil Minister Manuel Quevedo linked the fall in oil production in the country below 1 million barrels per day with attacks on energy infrastructure.

On October 3, Novak predicted a record drop in oil demand growth over the past seven years - in 2019, global oil demand growth may reach a minimum level, due to a slowdown in the global economy.

In 2015, it was reported that the energy strategy project until 2035 would be adjusted.

Source: russiart

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