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Page added on December 26, 2014

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Russia called on to suspend arctic oil ambitions

Public Policy

The Russian branch of the World Wide Fund for Nature said Russia needs to suspend exploration and production efforts in the arctic because of low oil prices.

At a press summit organized by the Russian Natural Resources Ministry, WWF Director Igor Chestin said it was time to halt ambitions in the Russian arctic.

“We need to declare a 10-year moratorium on oil and gas exploration in the arctic,” he said. “At current oil prices, these projects are absolutely unprofitable.”

U.S. energy company Exxon Mobil has a partnership with Russian oil company Rosneft for work in the arctic waters of Russia. With Western sanctions impeding developments, the Russian government has placed a greater emphasis on domestic exploitation of arctic reserves.

Low crude oil prices have starved major energy companies of the capital they need to fund exploration and production campaigns. Some campaigns in the arctic may need oil at around $75 per barrel to prove economical, about 25 percent above the current market for crude.

Nevertheless, Rosneft said Wednesday it plans to invest $400 billion on developing arctic reserves over the next 20 years. If predictions are accurate, the company said output from the region could account for as much as 30 percent of Russia’s total oil production by 2050.

In terms of revenue, Rosneft said it could bring in $2.8 trillion in revenue from arctic programs.

Nikolai Malyshev, Rosneft’s deputy director for operations on the Russian continental shelf, said the company was reviewing its current programs because of a lack of viable partners.

Russia is among the countries hardest hit by current oil market conditions. The Russian currency at one point in December hit its lowest point ever when compared with the U.S. dollar.


7 Comments on "Russia called on to suspend arctic oil ambitions"

  1. dissident on Fri, 26th Dec 2014 2:31 pm 

    NATO’s 5th column at it again. I want to see Greenpeace, WWF and whatnot agitate for the suspension of US and Canadian drilling ambitions in the Arctic. Until such time that they show the same level of zeal directed against their paymasters they cannot be taken seriously.

  2. penury on Fri, 26th Dec 2014 2:32 pm 

    Every one needs to remember; All fossil fuels are the sole property of the Empire,trying to extract and utilize these resources will get you Saddamed.

  3. Perk Earl on Fri, 26th Dec 2014 5:13 pm 

    “We need to declare a 10-year moratorium on oil and gas exploration in the arctic,” he said. “At current oil prices, these projects are absolutely unprofitable.”

    In 10 years it will be even more unprofitable, as consumer affordability continues to slide downwards along with declining net energy, dragging oil price with it.

  4. Makati1 on Fri, 26th Dec 2014 6:05 pm 

    Projections 5-10 years into the future is a losing game if you are not realistic, and few, if any I have seen have been anywhere near so.

    As for Russia and money to invest, China will likely be their partner if it goes forward. $400B is only 10% of the foreign reserves China has to spend soon.

  5. JuanP on Sat, 27th Dec 2014 11:02 am 

    Russia should send all foreign NGOs packing. Thet are nothing but instruments of TPTB, and some of them are not even aware they are getting played.

    As far as Russia’s arctic oil E&P goes, I think a slowdown would make economic sense for now, and expect it to continue.

    I believe the war between the USA and Russia will continue escalating for the foreseeable future. We may not live to see the end of this. It is fast becoming an event that will have multigenerational consequences.

  6. Apneaman on Sat, 27th Dec 2014 1:08 pm 

    Fuck the World Wide Fund for Nature and all those big institutionalized environmental non profits. They are no different than politicians and bureaucrats; corrupt and working for TPTB as a well paid managerial class. Same for Mothers Against Drunk Drivers(MADD);corrupt and working with big alcohol because the drug, the most damaging and costly in human history is not the problem, you are. Deaths and accidents from distracted drivers using their devices has surpassed those related to drinking, so where is the outrage? Where are the grieving moralizing mothers? They are among the ubiquitous texting and chatting drivers. You can’t scape goat moms and only corporations and government are allowed to scapegoat the majority. Don’t you know that you can “save the planet” simply by recycling and with smarter consumer purchases? Consuming products that have the words “green or “Fair trade” on them? And of course donating money to worthy humanity saving causes, especially ones featuring cute critters and sad children. It really is just the 21st century secular version of a medieval Catholic indulgence; buying forgiveness. Like our medieval ancestors we are still carrying on with the bad behavior and somehow convince ourselves that there will be no reckoning. Tell yourself.

  7. Kenz300 on Sat, 27th Dec 2014 8:12 pm 

    The risky and expensive oil plays will not be funded in a declining price market………

    Best to diversify away from fossil fuels now…….

    Buy a bicycle and enjoy the scenery while saving money on energy.

    If we really want to plan for a future with less reliance on fossil fuels then bicycles and mass transit will need to be a big part of it.

    It is time to transition our cities to become more bicycle friendly. Safe walking and biking paths that connect homes, work, schools and businesses are needed.

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