by Low Ee Mien on 10/13/2009
Russia is pumping more oil than ever before, counteracting OPEC production cut efforts to influence the crude price. Russia in September produced 10 million barrels of oil per day [mbpd], a new record for the country that recently surpassed Saudi Arabia as the world's biggest oil producer. The increase is due mainly to the opening of the Vankor field in the Arctic. The Rosneft-operated field is due to reach its peak production of 510 kbpd in 2014; much of its oil will be delivered to China.
OPEC, which accounts for nearly 40% of global crude supply, pumped 26.25 mbpd in Aug 2009, 1.4 mbpd over the production target set a year ago. This comes a few days after British newspaper The Independent reported on a secret plan by China, Russia, France, Brazil and the Gulf states to replace the USD as the pricing currency for oil by a currency basket, which would include the euro, yen, yuan and a future joint currency in the Gulf region. Several OPEC member states and Russia have denied the report.
While this isn't the first time that Russia has overtaken Saudi Arabia in crude oil production figures, and there may be some who are skeptical over the sustainability of their lead, it would be useful to note where Russia's new-found oil reserves are now coming from, the holy grail of new oil discoveries : the Arctic. Compared to Saudi's aged and declining Ghawar field, the Russians now have the upper hand in the energy production game, with their resources in key areas from crude oil to natural gas to uranium. As the peakoiler community has predicted, and I have blogged about, since circa 2006 - move along, Saudi Arabia : Russia is well on its way to becoming a true energy superpower.
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