Russian Oil Industry Under Pressure

Oil prices are falling and the cost of extraction is rising as resources are becoming exhausted. And then there are the Western sanctions imposed on oil companies as a result of Russia’s actions in Ukraine.

As Opec oil producers meet in Vienna to consider how to respond to falling prices, Moscow is particularly keen for concerted action.

he pressure on Russia’s oil industry is increasing. Oilfields that were within relatively easy reach have already been explored.

“It is becoming harder and harder to extract oil,” says Petr Fedorov, the supervisor on the Salym Petroleum drilling platform.

“We will have to develop new projects in more complex conditions, in particular on the sea shelf and in the Arctic.”

And the sanctions are adding to the problem.

Russia used to import most of the technical equipment needed to mine less accessible reserves.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza