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Page added on May 6, 2017
Russia announces oil production milestone above Arctic Circle
Nearly 200 tankers have left an oil field above the Arctic Circle in Russia that’s passed the production milestone of 35 million barrels, Gazprom Neft said.
A subsidiary of Gazprom Neft, the oil arm of Russian energy company Gazprom, said Friday total cumulative production from the Novoportovskoye field above the Arctic Circle has reached 5 million metric tons, or around 35 million barrels.
“The Novoportovskoye oil and gas-condensate field is one of the most significant in the Yamal Peninsula,” the company said in a statement. “Eighty-five wells are currently in operation at the field, producing between 50 and 1,100 tonnes of oil per day.
A total of 19 wells at the field have been constructed so far this year at the field. Pilot projects were completed in 2014 and shipments facilitated by an icebreaking-vessel made it so the company could start delivering oil from the extreme north about a year ago.
Recently, the company revised its production schedule higher after a review of data found annual peak production rates could reach 35 million barrels. Development of the fields above the Arctic Circle is costly, however, with most Russian operators waiting for oil to move above $75 per barrel to review further opportunities.
The price for Urals crude oil, the Russian benchmark for the price of oil, was trading around $47 per barrel early Friday.
Russian Minister of Natural Resources Sergei Donskoi said earlier this year that, while the market was prohibitive of further development, the Arctic region was still a strategic development opportunity.
Gazprom Neft made its first winter shipment of oil from the Novy Port field to the European market in early 2015.
5 Comments on "Russia announces oil production milestone above Arctic Circle"
bobinget on Sat, 6th May 2017 12:48 pm
I’m sure most folks have no idea from where their oil emanated. Or care. Most of us have never met a polar bear.
If/when oil prices get back to triple digits most of the arctic will become economic to drill.
The trick for us to learn? Avoid buying another ICE vehicle. Go to conferences on-line instead of flying, etc.
Drilling for oil in hard rock or permafrost will slowly diminish (over the decades) if diesel and gasoline demand falls.
Go Speed Racer on Sun, 7th May 2017 2:43 am
Does this mean they will bring back
the ‘Arctic Circle’ brand name? There used
to be stores of that name in the 60’s.
They sold hamburgers and ice cream.
This time, could have gas pumps too.
Cloggie on Sun, 7th May 2017 3:01 am
If/when oil prices get back to triple digits most of the arctic will become economic to drill.
Pray tell, when will this tripling begin in your view, accelerating the existing global renewables boom?
Can’t happen soon enough.
Davy on Sun, 7th May 2017 5:54 am
“ If/when oil prices get back to triple digits most of the arctic will become economic to drill.”
Yea, triple digits may occur but with a hyperinflated currency. Oil and the economy are stuck in a narrow band of economic activity. Debt economics has run its course. We left the gold standard in 71. We left the fiat currency standard in 08. The definition of fiat is authorization and trust underlies it. What is next after the trust is gone? Yet, we have old timers here who dwell in the 20th century of economic habituation. They see a continuation of the status quo growth per their habituation.
Oil prices are not going to rise much except in a shock because real natural growth is over. Bubble growth is not real. Growth that is composed of significant bad debt is not actual growth. Few realize how narrow the slice of “growth” is positive and how negative the loss once that positive slice is gone. Ask anyone who has bought on margin about losses. Losses explode once a real return turns negative.
This thinking that sustained oil price rise could or may rise significantly are living in a fantasy world. Renewable energy wonks are little different. They are lost in their 20th century economic habituation. Their renewable momentum will be stuck down in one quarter if we go into a significant economic down turn. They don’t see this because you know 08 happened and something else will happen to keep the happiness rolling.
Perfect wild on Sun, 7th May 2017 9:25 pm
“Most of us have never met a polar bear.”
FWIW, I have – on the sea ice off the coast of northern Alaska.