Russia's oil reserves might run out in 2080

RUSSIA / FSU POLITICS - In Brief 12 May 2021 by Alex Teddy
On May 11 the Ministry of Natural Resources said that the country's oil reserves will last until 2080. However, gas will last until 2124. There might be more hyrdocarbons than this but they have not been found.Prospecting in the Arctic could lead to more finds. Rosneft is exploring there. A USD 110 billion investment program is underway in the far north. The aim is to pump 100 million tons of oil per annum. That would be 20% of Russia's current oil output. Oil exploration and production in the far north is expensive and Rosneft has sought tax exemptions to make it financially feasible.The Natural Resources Ministry said that only a third of the known hycrocarbon reserves will be profitable. That is because Russia lacks the latest tech which would make such projects profitable. Since 2014 US and EU sanctions on the energy sector have prohibited Western companies from selling its extraction technology with Russia.40% of Russia's GDP depends on minerals. The move to green energy therefore represents a major headache for Russia. The EU's carbon border tax will be a serious problem for Russia according to the Central Bank of Russia.The Energy Ministry said that oil output shall never return to its pre-coronavirus high. In 2029 it is predicted to start its terminal decline.

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