Investment in Russian oil sector may fall by 2 tln rbl till 2035 - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

Investment in Russian oil sector may fall by 2 tln rbl till 2035

MOSCOW, Oct 3 (PRIME) -- Investment in the Russian oil industry may fall by 2.3 trillion rubles until 2035 as compared with the level of 2018 if the taxation system is not changed, the Energy Ministry said in a statement presented on Thursday by Deputy Minister Pavel Sorokin during the Russian Energy Week.

УThe current configuration of the taxation system makes contraction of output inevitable, which will lead to contraction in taxes and investment,Ф the presentation read, adding that output may fall to 339.1 million tonnes in 2035 from 555.8 million tonnes in 2018 with investment falling by 2.3 trillion rubles without stimulation measures.

УOf course, companies adapt to harsh conditions, and we saw examples of that in 2014,Ф Sorokin said.

УIn the U.S., the cost of shale oil production fell by almost two times thanks to higher efficiency, as the majority of СhorizontalТ productions switched into СverticalТ ones, but largely thanks to a reduction in the cost of works of servicing companies. The servicing companies are still unable to recover from the shock of 2014Ц2016, but it helped reduce production costs,Ф he said.

Still, if nothing changes, both output and investment will fall, he said.

(65.4399 rubles Ц U.S. $1)

End

03.10.2019 15:37
 
 
Share |
To report an error select text and press Ctrl+Enter
 
 
Central Bank Official Rate
1W 1M 1Y
USD
EUR 70.7594 +0.0349 07 dec
USD 63.7185 -0.0950 07 dec
Stock Market Indices
1D 1W 1M 1Y
MICEX
rtsi 1448.34 +1.25 18:50 06 dec
micex 2928.76 +1.02 18:50 06 dec
Stock Quotes in RUR
1D 1W 1M 1Y
GAZP
gazp 247.83 +0.60 18:49 06 dec
lkoh 6220.00 +1.61 18:49 06 dec
rosn 446.00 +1.73 18:49 06 dec
sber 235.14 +1.48 18:49 06 dec
MICEX Ruble Trading
1D 1W 1M 1Y
USDTD
EURTD 70.6675 -0.1275 14:59 06 dec
USDTD 63.6775 -0.1050 17:44 06 dec