Friday, November 4, 2011

Russia oil output hits new record

Cuts in export duty pushed Russia's oil production, the world's largest, to a post-Soviet high of 10.34 million barrels per day (bpd) in October, the Energy Ministry said on Wednesday.
This compared with a previous record high of 10.30 million bpd hit in September.
But gas output at the world's top producer, Gazprom , slumped year-on-year on high gas prices for buyers.
Russia has kept ahead of Saudi Arabia as the world's largest crude producer. Last month the kingdom's output declined to 9.4 million bpd from 9.5 million bpd, according to a Reuters survey.
Russia Oil Production Consumption 

October was the first month of the new "60-66" taxation regime for the Russian oil industry, which cut duties on crude oil and some refined products to stimulate output of high-grade oil products and crude.
Hydrocarbons are a major source of state revenue, which must be replenished after a rise in spending ahead of parliamentary elections in December and a presidential vote in March.
Russia's third-largest oil company TNK-BP , half-owned by BP , contributed the most to the crude production increase, with output edging up 0.2 percent month-on-month to 6.27 million tonnes.
Russian Top Oil Importers 
Small producers -- a category which includes joint ventures such as Salym Petroleum, operated by Shell (RDSa.L) and Gazprom Neft -- also made a significant impact with a 2.2 percent increase to 3.6 million tonnes.
According to the West's energy watchdog, the International Energy Agency, Russia's oil production peaked at 11.41 million bpd in 1988, when it was still part of the Soviet Union.
Analysts polled by Reuters at the end of last year, expected Russian oil output would increase by 1.1 percent to 10.26 million bpd this year.
Year-to-date, output has averaged at 10.25 million bpd.

Russia Oil Production By Region

Russia's overall daily natural gas production increased by 13 percent to 1.80 billion cubic metres (bcm) last month from 1.59 bcm in September. Gas output at Gazprom rose 15 percent to 1.35 bcm a day month-on-month.
But Gazprom's output dropped 9.2 percent from October 2010 as buyers in Europe struggled to cope with high gas prices -- approaching $500 per 1,000 cubic metres -- and had bought volumes in advance.
"It is the lowest October production in the history of Gazprom," Mikhail Korchemkin of East European Gas Analysis said.
The state corporation has been suffering from competition with independent producers including Novatek , whose production jumped by 54 percent year-on-year to an all time high of 4.8 bcm last month.
Oleg Maximov from Troika Dialog brokerage said non-state gas producers were gaining the upper hand on the domestic market.
"We estimate that over 9 months in 2011, Russian consumption increased by 10 bcm y-o-y, while the output by the independents rose by 12 bcm, hence leaving no room for Gazprom to participate in growth on the domestic front," he said.

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