Novak: Russia’s oil output may increase slightly in 2021

MOSCOW, Jan 14 (PRIME) -- Russia’s oil production may grow slightly in 2021 as compared with 2020, Deputy Prime Minister Alexander Novak said on Thursday during the Gaidar Forum.

“We are unable to give any definite numbers now because we will decide on recovery during the year. The range may be slightly higher than last year,” he told reporters.

Russia’s compliance with the OPEC+ oil output reduction deal amounted to 95–96% in December 2020, according to independent sources. Russia always stands for 100% compliance with the deal, and it will try to maintain the same compliance in January, Novak said.

He explained higher prices for natural gas in Europe and Asia by cold weather that resulted in higher Russia’s coal exports.

“You said that coal power generation is subsiding now. Events of the past several days and months when low temperatures resulted in higher prices for gas in the Asia–Pacific region due to a deficit of resources in the cold time,” he said.

“What is the result? They started loading to the coal power plants. Coal exports, even from Russia, grew significantly. … It was also unprofitable for us to export to Europe, but coal exports to Europe restated during these days of low temperatures.”

Still, demand for natural gas will continue rising in the world as power consumption increases, and power generation running on renewable sources will not replace it. The world is in a transition state from fossil fuels to renewable energy sources, and different estimates show demand for oil and gas reaching its peak in at least 10–20 years.

“The lifespan of gas is longer as it is also an ecologically-friendly and competitive product,” Novak said.

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