Oil, like many other fossil fuels, was discovered a long, long time ago. According to researchers, the first oil deposits were formed about 600 million years ago, when there was more water in the oceans, and some modern islands and territories of individual countries where oil is currently being extracted did not yet exist at all.
If people had never discovered oil, the modern world would be completely different now, because many things would simply not exist in it. It’s even difficult to imagine what a colossal number of things that people use in modern everyday life would disappear if there were no oil. After all, oil is the main component of such things as synthetic fibers that are used in clothing, plastics that are used in everyday life and in industry, medications, cosmetics and much more. Black gold was discovered by ancient civilizations. They were actively producing oil. Of course, the technology of oil production then was radically different from modern technology - it was quite primitive. Oil was extracted manually, respectively, at shallow depths.
The purpose of oil production in those days was to use it as, for example, a weapon, which was used to arm a number of countries. “Oil” weapons include “Greek fire,” which resembles modern flamethrowers. In addition, ancient people found other uses for oil - they made it the main component of cosmetology and medicine.
The Chinese, in turn, were a very advanced people. They used bamboo drills to drill kilometer-long wells. However, they did not set themselves the goal of extracting oil, but extracting table salt dissolved in mineral water, and oil was a by-product.
Since those distant times and to this day, oil has been an integral part of many products. Thus, more than half of the energy consumed by humanity today is produced from oil, because almost all vehicles in the world run on fuel created from oil. In addition, oil is used to generate electric current, which is so necessary for lighting, heating premises, as well as to provide houses and apartments with water, because the pumps pumping water are powered by electricity, which is generated by burning oil. Thus, all of the above is vital, and accordingly, oil is a vital mineral.
To date, no alternative to this black gold has yet been found. There are already many technologies that make it possible to generate both electricity and produce motor fuel, but these technologies cannot yet replace oil 100%.
Oil fields in the world
More than half of the world's oil demand is met by the Middle East, Arab countries, and Iran. This is where the largest oil reserves are located. However, the Russian Federation can also be proud of its large oil fields. In addition, large oil fields are present in the USA, African countries (Nigeria), and North America. Huge deposits of black gold are present in many other places, however, there are some financial difficulties with their development, since development requires both large financial costs and special equipment.
It is worth noting that until the 19th century, natural surface deposits remained the traditional source of petroleum products. Significant changes took place in the mid-nineteenth century, when deep drilling technology was developed. After all, it was deep drilling that made it possible to reach those oil deposits that are hidden deep in the bowels of the earth. Thanks to this, oil production has moved to a fundamentally new, higher quality level. This, in turn, was facilitated by the industrial revolution, which required significant volumes of kerosene and lubricating oils. This need could be satisfied exclusively through liquid hydrocarbons on an industrial scale and their further distillation. The lightest gasoline fraction of oil initially had no demand; accordingly, it was liquidated, or rather, simply burned. The most popular was fuel oil, which became an excellent fuel.
Oil production in the world began in the United States back in 1859. In the first spring, oil was found at a depth of 21 meters. When this source was opened, oil flowed from it. In this regard, a fairly simple drilling method was used - a wooden drilling tower, in which a chisel was suspended, continuously crashing into the ground with noise, thereby breaking the stones. In the relatively distant year 1859, the amount of oil produced was 5,000 tons. However, already in 1880 the volume of oil produced increased to 3,800,000 tons. And with the advent of the first offshore drilling rig in 1900 in California, oil production increased to 20 million tons. It is worth noting that at that time, oil production in Russia amounted to 53%, and the United States - 43% of world production. It is worth noting that in just a century and a half, oil that was extracted using the well method began to be perceived as a traditional source, and those surface oil shows that were known to mankind from the very beginning became nothing more than exotic.
As already mentioned, oil reigns everywhere today. Its production does not stop, since the substance that can fully replace oil has not yet been found. However, this cannot continue forever, because oil is an almost irreplaceable natural resource. This is due to the fact that it will take millions of years for new oil deposits to form. Existing oil deposits are gradually drying up, but people continue to search for new ones. It is assumed that new volumes of oil deposits may be hidden under deserts or swamps, deep in the sea, under the seabed, or under blocks of Antarctic ice, and perhaps even behind the terrain. Taking all this into account, it is worth noting that the search for new oil fields is a rather complex process that requires significant financial expenses.
Today, the world's oil reserves are such that they allow the annual production of about 4.4 billion tons of black gold. It is very difficult to calculate how much oil reserves there are in the world today, due to the fact that there are still undiscovered oil fields. However, according to scientists, if oil production continues at the same volumes from existing fields (provided that no new deposits are discovered), then its reserves will hardly last until 2025. In the event that oil production volumes in the world drop significantly and additional sources of oil deposits are discovered, then black gold may last for a period of 150 to 1000 years. But this time is very short if we take into account the volume of the planet in general. Thus, the conclusion suggests itself that people must come to change their lifestyle, use oil sources rationally and continue to search for alternative energy sources. According to many experts, in the future it will happen that oil will be used exclusively as a raw material for the chemical industry to produce plastics, medicines, and other high-quality products. Vehicles will be powered by hydrogen. And electrical and thermal energy will be produced from other renewable energy sources, such as solar.
Thus, it is generally impossible to say how much oil there is in the world. It is only possible to roughly estimate oil reserves from already discovered and explored fields. At the beginning of the 21st century in Canada, giant deposits of bitumenized rocks located in the province of Alberta were classified as traditionally extractable oil. In this regard, Canada reported that its reserves of black gold have increased sharply. However, such deposits were not immediately accepted by OPEC and other countries as a traditional source of oil. It was only in 2011 that unconventional shale oil reserves were legitimized and everyone started talking about the energy revolution. The emergence of such oil sources led to an increase in oil production on the North American continent. New technologies have also emerged, thanks to which it is now possible to extract oil in places that were previously inaccessible. However, modern methods of oil production are far from environmentally friendly.
| 1 | Russia | 10.840.000 |
| 2 | Saudi Arabia | 9.735.000 |
| 3 | USA | 8.653.000 |
| 4 | China | 4.189.000 |
| 5 | Iran | 3.614.000 |
| 6 | Canada | 3.603.000 |
| 7 | Iraq | 3.368.000 |
| 8 | UAE | 2.820.000 |
| 9 | Kuwait | 2.619.000 |
| 10 | Venezuela | 2.500.000 |
| 11 | Mexico | 2.459.000 |
| 12 | Nigeria | 2.423.000 |
| 13 | Brazil | 2.255.000 |
| 14 | Angola | 1.742.000 |
| 15 | Kazakhstan | 1.632.000 |
| 16 | Norway | 1.568.000 |
| 17 | Qatar | 1.540.000 |
| 18 | Algeria | 1.420.000 |
| 19 | European Union | 1.411.000 |
| 20 | Colombia | 989.900 |
| 21 | Oman | 943.500 |
| 22 | Azerbaijan | 845.900 |
| 23 | Indonesia | 789.800 |
| 24 | Great Britain | 787.200 |
| 25 | India | 767.600 |
| 26 | Malaysia | 597.500 |
| 27 | Ecuador | 556.400 |
| 28 | Argentina | 532.100 |
| 29 | Egypt | 478.400 |
| 30 | Libya | 470.000 |
| 31 | Australia | 354.300 |
| 32 | Vietnam | 298.400 |
| 33 | Republic of the Congo | 250.000 |
| 34 | Equatorial Guinea | 248.000 |
| 35 | Turkmenistan | 242.900 |
| 36 | Gabon | 240.000 |
| 37 | Thailand | 232.900 |
| 38 | South Sudan | 220.000 |
| 39 | Spitsbergen | 194.300 |
| 40 | Denmark | 165.200 |
| 41 | Yemen | 125.100 |
| 42 | Brunei | 111.800 |
| 43 | Italy | 105.700 |
| 44 | Ghana | 105.000 |
| 45 | Chad | 103.400 |
| 46 | Pakistan | 98.000 |
| 47 | Romania | 83.350 |
| 48 | Trinidad and Tobago | 81.260 |
| 49 | Cameroon | 80.830 |
| 50 | Timor-Leste | 76.490 |
| 51 | Peru | 69.300 |
| 52 | Uzbekistan | 64.810 |
| 53 | Sudan | 64.770 |
| 54 | Tunisia | 55.050 |
| 55 | Bolivia | 51.130 |
| 56 | Cuba | 50000 |
| 57 | Bahrain | 49500 |
| 58 | Germany | 48830 |
| 59 | Türkiye | 47670 |
| 60 | Ukraine | 40490 |
| 61 | New Zealand | 39860 |
| 62 | Ivory Coast | 36000 |
| 63 | Papua New Guinea | 34210 |
| 64 | Belarus | 30000 |
| 65 | Netherlands | 28120 |
| 66 | Syria | 22660 |
| 67 | Philippines | 21000 |
| 68 | Mongolia | 20850 |
| 69 | Albania | 20510 |
| 70 | DR Congo | 20.000 |
| 71 | Niger | 20000 |
| 72 | Burma | 20000 |
| 73 | Poland | 19260 |
| 74 | Austria | 17250 |
| 75 | Serbia | 16840 |
| 76 | France | 15340 |
| 77 | Suriname | 15000 |
| 78 | Hungary | 11410 |
| 79 | Croatia | 10070 |
| 80 | Guatemala | 10050 |
| 81 | Chile | 6666 |
| 82 | Spain | 6419 |
| 83 | Mauritania | 6003 |
| 84 | Japan | 4666 |
| 85 | Bangladesh | 4000 |
| 86 | Czech | 3000 |
| 87 | South Africa | 3000 |
| 88 | Lithuania | 2000 |
| 89 | Belize | 1818 |
| 90 | Greece | 1162 |
| 91 | Barbados | 1000 |
| 92 | Kyrgyzstan | 1000 |
| 93 | Bulgaria | 1000 |
| 94 | Georgia | 1000 |
| 95 | Morocco | 500 |
| 96 | Israel | 390 |
| 97 | Tajikistan | 206 |
| 98 | Slovakia | 200 |
| 99 | Taiwan | 196 |
| 100 | Jordan | 22 |
| 101 | Slovenia | 5 |
Oil production has become one of the priority sectors of the Russian economy since the beginning of the 20th century. At various periods in the country's history, Russia accounted for up to 30% of the world production of this raw material. Since the second half of the last century, with the increase in world capital and production volumes, this industry has become decisive.
In the modern period, the Russian Government is taking measures to move away from the dependence of budget revenues on profits associated with hydrocarbon raw materials. But the main financial revenues to the treasury continue to come from oil sales.
Russia's place in oil production in the world
The Russian Federation is not only the largest state in terms of territory, but also one of the richest in terms of the presence of hydrocarbons in its depths. In many ways, some oil fields are unpromising for further exploitation due to their barbaric use by non-professional oil producers.
The introduction of modern production methods with more efficient oil production technologies allows Russia to remain in the top ten list of countries in terms of remaining oil reserves, which is headed by Venezuela with a reserve of approximately 46 billion tons. Russia, according to British Petrolium, has another 14 billion tons in its depths.
In terms of annual production, Russia and Saudi Arabia hold a confident lead, each producing about 13% of global oil production. This, of course, speaks not only of Russia’s influence on the world economy, but also of the direct dependence of the Russian economy on world oil prices. Most of the crises and economic booms of both the USSR and modern Russia are associated precisely with the prices of raw materials.
Volume of oil production in Russia
After the collapse of the USSR, oil production moved to private companies, which not only began to use raw materials more rationally, but also switched to world standards in terms of oil production. Most interstate agreements and rules related to oil production volumes established by the international community are aimed at the stability of world quotations for raw materials.
However, it is important for the Russian economy that oil production volumes remain stable and grow without violating international standards. Therefore, simultaneously with a decrease in the volume of exported oil since 2011, since the same period there has been a noticeable annual increase in the amount of raw materials produced. If in 2011 Russia produced about 510 billion tons of oil per year, then in 2016 this figure reached almost 547 billion tons, increasing annually by approximately 10 billion tons.
In 2017, according to OPEC estimates, oil production in the first and second quarters in Russia is estimated at 11.25 and 11.26 million barrels per day, respectively.
Main oil production areas in Russia
The richest oil deposits were discovered back in the Soviet period of history, and for the most part they are partially or completely exhausted. However, there are enough territories where hydrocarbons still remain. Some deposits have not been explored, and some have not yet begun production.
Despite the huge number of oil fields, it seems impossible to begin their exploitation at the moment due to economic unprofitability. In certain areas, the cost of oil production is several times higher than the efficiency parameters allow. Therefore, priority is given to more profitable pools.
Previously, the main share of domestic oil production came from the Volga-Ural basin; recently, most of the raw materials are produced in Western and Eastern Siberia, as well as the Timan-Pechora oil region. The largest volumes of oil production occur in the Khanty-Mansi Autonomous Okrug - these are the Samotlor, Priobskoye, Lyantorskoye and other fields in the region.
The most effective fields for oil production are Vankorskoye (Krasnoyarsk Territory) and Russkoye (Yamalo-Nenets Autonomous Okrug). The exploitation of these fields began in 2008, and they account for about 5% of Russian oil production.
Some of the resources are located at:
- North Caucasus;
- Far East;
- Black Sea region.
But the volumes of oil production in these basins are minimal compared to Siberian ones.
Cost of oil production in Russia
The cost of oil production is one of the decisive indicators when choosing fields for development. The price spent on producing 1 barrel of oil depends on the complexity of extracting raw materials and the level of technology used during operation.
The issue of raw material extraction in some regions in the context of falling world oil prices is especially acute. For example, the cost of oil production in some areas of America reaches 60 dollars per barrel, which is approximately equal to the world price and, as a consequence, this indicates the futility of production from this field. In this sense, Russian pools are inferior to competitors in Saudi Arabia, Iran and Kazakhstan.
An important fact is that Russian fields differ greatly in the cost of oil production:
- in fields whose exploitation began in the middle of the last century, the cost of a barrel of oil reaches up to $28;
- basins that have been developed since the late 90s have a cost of about $16/barrel of oil.
There are also fields in Russia where, according to experts, the cost of oil production may not exceed 5 dollars per barrel, which makes it possible to achieve Saudi Arabia’s profitability levels.
Dynamics of oil production in Russia by year
The rapid growth of oil production in the world in the 60-70s of the 20th century led the USSR to a temporary period of economic prosperity: with an increase in the amount of raw materials on the market, contrary to all the laws of economics, its cost also increased.
After the seventies, there was no sharp increase in the amount of extracted raw materials (in the 21st century, the figure increases annually by an average of only 1.7%).
In modern Russia, a temporary decline in oil production was observed in the mid-90s. This decline was due to the difficult transfer of oil capital from the state to the hands of companies and the general negative economic situation in the country.
Since the beginning of the 2000s, the industry began to operate stably, due to which the amount of oil produced gradually increased. In the period from 2000 to 2004, production volumes rose from 304 billion tons to 463. Later, the sharp rise stabilized, and during the period from 2004 to 2016, resource production increased from 463 to 547 billion tons.
Oil and gas production in Russia by company
Large companies producing oil and gas in Russia:
- Gazprom;
- "Surgutneftegaz";
- "Tatneft";
- "Lukoil";
- "Rosneft".
In corporations such as Gazprom and Rosneft, the Russian Federation holds a controlling stake. The main owner of Tatneft is the Republic of Tatarstan. In other organizations, the share of state participation is small or absent (shares are in the hands of private individuals or information about the owners is not publicly disclosed).
The leader in Russian oil production is Lukoil, whose revenue is approximately 4-5 times lower than that of the world leaders in this indicator.
The undisputed championship in gas production in Russia belongs to PJSC Gazprom, which produces about 70% of the gas in the country. Most companies extracting hydrocarbon raw materials have shares in free circulation; any person can become the owner of the organization.
Shale oil production in Russia
Serious investments are being made in the development of shale oil production by foreign companies. Shale oil differs from conventional oil in its composition and extraction procedure.
Shale oil requires certain chemical processes to be produced. For some states that do not have oil fields, it is more profitable to invest in shale oil production on the territory of their state than to buy natural raw materials from abroad. For example, Estonia does this.
Over the past decade, America has been investing more and more in shale every year. In 2016, the share of production of synthetic raw materials is about 5% of total production volumes.
In Russia, shale oil production has not yet begun, although legislators and the Government of the Russian Federation are actively working towards the further development of this area. The idea is also supported by the largest Russian hydrocarbon production companies.
According to existing data, the potential amount of artificial oil on Russian territory could leave countries around the world out of competition in the oil and gas industry. It is planned to begin shale oil production before 2030, having previously prepared the relevant legislation, conducted research and licensing in this area.
Foreign and Russian oil production companies at the exhibition
Tens of thousands of company representatives from all over the world gather at international oil and gas exhibitions.
Major events of this kind are traditionally considered:
- Petrotech;
- CIPPE;
- Offshore Arabia.
In Russia, the greatest attention is focused on exhibition "Neftegaz", which is held by the Expocentre exhibition center.
Presentations of new methods, joint search for markets, mutually beneficial transfer of technologies and scientific research, common solutions to common problems, discussion of industry prospects - this is not a complete list of opportunities that open up for exhibition participants.
The history of mankind's acquaintance with black gold goes back many millennia. It has been reliably established that the extraction of oil and its derivatives was carried out already 6000 years BC. People used oil and the products of its natural transformations in military affairs and construction, in everyday life and medicine. Today, hydrocarbons are the heart of the world economy.
From time immemorial
Even ancient civilizations carried out active (to the extent possible) oil production. The technology was primitive, it can be described in two words: manual labor. Why was it mined? For example, in ancient times, a number of countries were armed with incinerating weapons - “Greek fire”, similar to modern flamethrowers. The black oily liquid was also used in medicine and cosmetology.
The inventive Chinese went much further: they used bamboo drills for drilling - some wells reached a kilometer depth. True, black gold for them was a by-product, and the main one was the extraction of table salt dissolved in mineral water.
Industrial Revolution
Until the 19th century, natural surface deposits (or rather, their manifestations) remained the traditional source of petroleum products. A radical turning point came in the middle of the 19th century with the advent of deep drilling technologies, thanks to which accumulations of liquid oil in the bowels of the earth became accessible. Oil production has moved to a qualitatively new level.
The Industrial Revolution required ever-increasing quantities of kerosene and lubricating oils, and this need could only be met by liquid hydrocarbons on an industrial scale and their subsequent distillation. The lightest gasoline fraction of oil initially had no demand and was dumped or burned as unnecessary. But the heaviest one - fuel oil - immediately came into use as an excellent fuel.
Rates of growth
World oil production in 1859 amounted to only 5,000 tons, but already in 1880 it increased to an unimaginable at that time 3,800,000 tons. By the turn of the century (1900) it reached 20 million tons, with Russia accounting for 53%, and the USA - 43% of world production. The 20th century saw rapid growth:
- 1920 - 100 million tons;
- 1950 - 520 million tons;
- 1960 - 1054 million tons;
- 1980 - 2975 million tons, of which the USSR accounted for 20%, and the USA - 14%.
Over the course of a century and a half, oil produced by wells began to be perceived as its traditional source, and surface oil shows that have accompanied humanity throughout its history have become exotic.
At the turn of the 21st century, there was a return to tradition, but at a new technological stage of development: in the late 90s, Canada announced a sharp increase in its oil reserves due to the recalculation of giant deposits of bituminized rocks in the province of Alberta, equating them to traditionally extracted oil.
The recalculation was not immediately accepted by OPEC and other countries. It was only in 2011 that unconventional reserves of so-called shale oil were legitimized and everyone started talking about an energy revolution. By 2014, thanks to shale on the North American continent, oil production had increased significantly. Hydraulic fracturing technology made it possible to extract hydrocarbons in places where it had never been thought of. True, current methods are unsafe for the environment.
Changing the balance of power
Shale deposits have created an imbalance in the global industry. If previously the United States was one of the main importers of hydrocarbons, now it has saturated its own market with a cheaper product and is thinking about exporting shale gas and oil.
Also, huge reserves of this type of black gold were discovered in Venezuela, thanks to which the poor Latin American country (which also has rich traditional deposits) came out on top in the world in terms of reserves, and Canada came in third. That is, oil and gas production in both Americas has increased significantly thanks to the shale revolution.
This led to a change in the balance of power. In 1991, the Middle East contained two thirds (65.7%) of the world's liquid hydrocarbon reserves. Today, the share of the main oil region of the planet has decreased to 46.2%. During the same time, the share of South American reserves increased from 7.1 to 21.6%. The increase in the share of North America is not so significant (from 9.6 to 14.3%), since oil production in Mexico during the same time decreased by 4.5 times.
New industrial revolution
The increase in reserves and production of black gold in the last century was ensured in two directions:
- discovery of new deposits;
- additional exploration of previously discovered fields.
New technologies have made it possible to add to these two traditional ones one more direction for increasing oil reserves - the transfer to the industrial category of those accumulations of oil-bearing rocks that were previously defined as unconventional sources.
Thanks to innovations, oil production in the world even exceeds global demand, which provoked a two- or three-fold drop in prices in 2014 and the dumping policy of the countries of the Middle East. In fact, Saudi Arabia declared economic war on the United States and Canada, where shale is actively being developed. At the same time, Russia and other countries with low production costs suffer.
The progress in oil production achieved at the beginning of the 21st century can be comparable in significance to the industrial revolution of the second half of the 19th century, when oil production began to be produced on an industrial scale thanks to the emergence and rapid development of drilling technologies.
Dynamics of changes in oil reserves over the past 20 years
- In 1991, the world's recoverable oil reserves were 1032.8 billion barrels (approximately 145 billion tons).
- Ten years later - in 2001, despite intensive production, it not only did not decrease, but even increased by 234.5 billion barrels (35 billion tons) and already amounted to 1267.3 billion barrels (180 billion tons).
- After another 10 years - in 2011 - an increase of 385.4 billion barrels (54 billion tons) and reaching a volume of 1652.7 billion barrels (234 billion tons).
- The total increase in world oil reserves over the past 20 years amounted to 619.9 billion barrels, or 60%.
The most impressive increases in proven reserves and oil production by country are as follows:
- During the period 1991-2001. in the USA and Canada the increase was +106.9 billion barrels.
- In the period 2001-2011. in South America (Venezuela, Brazil, Ecuador, etc.): +226.6 billion barrels.
- In the Middle East (Saudi Arabia, Iraq, UAE, etc.): +96.3 billion barrels.
Oil production growth
- Middle East - an increase of 189.6 million tons, which in relative terms is 17.1%.
- South America - an increase of 33.7 million tons, which is 9.7%.
- North America - an increase of 17.9 million tons (2.7%).
- Europe, Northern and Central Asia - growth by 92.2 million tons (12.3%).
- Africa - growth by 43.3 million tons (11.6%).
- China, Southeast Asia, Australia - growth by 12.2 million tons (3.2%).
For the current period (2014-2015), 42 countries provide daily production of black gold in excess of 100,000 barrels. The undisputed leaders are Russia, Saudi Arabia and the USA: 9-10 million barrels/day. In total, about 85 million barrels of oil are pumped out every day in the world. Here are the Top 20 countries leading in production:
Oil production, barrels/day |
|||
Saudi Arabia | |||
Venezuela | |||
Brazil | |||
Kazakhstan | |||
Norway | |||
Colombia | |||
Conclusion
Despite gloomy forecasts about the depletion of hydrocarbons in 20-30 years and the onset of the collapse of humanity, the reality is not so terrible. New production technologies make it possible to extract oil from places where ten years ago it was considered unpromising and even impossible. The USA and Canada are developing shale oil and gas, Russia is harboring grandiose plans for the development of giant offshore fields. New deposits are being discovered on what seems to be the length and breadth of the explored Arabian Peninsula. In the next half century, humanity will have both oil and gas. However, it is necessary to develop renewable and discover new energy sources.
Oil is the most important source of energy in the world. The economies of many countries depend on these raw materials, including Russia. Revenues from the sale of oil and gas, whose value is also tied to the “price of black gold,” are a formative item of the Russian budget.
Oil from the Russian Federation is used to satisfy domestic needs, as well as to the external market, mainly to European countries. To ensure a large volume of supplies, Russian companies have increased significant production of raw materials. In this material we will tell you about how much oil Russia produces per day.
Russia is one of the leading countries in terms of oil production. Moreover, production continues to increase. In 2016, record values for the amount of oil produced were achieved. There are 8 large oil production companies in the country. These include:
- Rosneft (190 million tons in 2016);
- Lukoil (83 million tons in 2016);
- Surgutneftegaz (62 million tons in 2016);
- Tatneft (29 million tons in 2016);
- Slavneft (15 million tons in 2016);
- Bashneft (21 million tons in 2016);
- RussNeft (7 million tons in 2016);
In December last year, 47.042 million tons of oil were produced, and in total for the year - 547.5 million tons of oil. These are record values for modern Russia.
Daily production
To find out how much oil is produced in Russia per day, you can use statistical information. Over the past 7 years, annual oil production has ranged from 501 to 547 million tons. Although some agreements have been reached in recent months to freeze production, production levels are at record levels. On average, 43 million tons of oil are produced per month (current information for the end of 2016 - beginning of 2017). To calculate how much oil is produced in Russia per day, it is enough to divide this number by 30 days. We receive 1.43 million tons of raw materials per day. The value shown is the average.
To find out how many barrels of oil per day Russia produces, you need to perform the following calculations:
1.43 million tons with an average density of 865 kilograms per cubic meter is equivalent to 1653.179 million liters. Since one barrel of oil contains 159 liters, we find that Russia produces about 10.3 million barrels of raw materials per day.
Brief historical introduction
Since ancient times, people have collected oil from the surface of the earth (and water). At the same time, oil found rather limited use. After the safe kerosene lamp was invented in the second half of the 19th century, the need for oil increased sharply. The development of industrial oil production begins by drilling wells into oil-saturated formations. With the discovery of electricity and the spread of electric lighting, the need for kerosene as a source of lighting began to decrease. At this time, the internal combustion engine was invented and the rapid development of the automobile industry began. In the USA, the ancestor of mass production of cars, thanks to Henry Ford, in 1908 the production of an inexpensive Model T began at reasonable prices. Cars, which at first were available only to the very rich, began to be produced in greater and greater quantities. If in 1900 there were about 8 thousand cars in the USA, then by 1920 there were already 8.1 million. With the development of the automobile industry, the demand for gasoline and, as a result, the demand for oil increased rapidly. Until now, most of the oil is used to provide people with the ability to quickly move (by land, by water, by air).
World oil production
V. N. Shchelkachev, analyzing historical data on oil production volumes in his book “Domestic and World Oil Production”, proposed dividing the development of world oil production into two stages:
The first stage is from the very beginning until 1979, when the first relative maximum of oil production was reached (3235 million tons).
The second stage is from 1979 to the present.
It was noted that from 1920 to 1970, world oil production increased not only in almost every new year, but also over the decades, production grew almost exponentially (almost doubling every 10 years). Since 1979, there has been a slowdown in the growth rate of world oil production. In the early 80s, there was even a short-term decline in oil production. Subsequently, the growth of oil production volumes resumes, but not at such a rapid pace as in the first stage.
Dynamics of oil production in the world, million tons.
Despite the decline in oil production in the early 80s and periodic crises, in general, global oil production is steadily growing. Average annual growth rate for the period from 1970 to 2012 amounted to about 1.7%, and this figure is significantly less than the average annual growth rate of world GDP.
Did you know that...
In world practice, oil production volumes are measured in barrels. In Russia, historically, mass units are used to measure production. Before 1917 it was pounds, but now it’s tons.
In the UK, as well as in Russia, tons are used to account for oil production. But in Canada and Norway, unlike all other countries, oil is measured in m3.
Oil production in Russia
Oil production in Russia has been growing steadily since the early 2000s. Since 2010, oil production in Russia has surpassed the level of 500 million tons per year and has confidently remained above this level, steadily increasing.
Oil production in Russia, million tons
According to BP Statistical Review of World Energy 2019
In 2018, despite the OPEC+ agreements, a new record was set. 563 million tons of oil and gas condensate were produced, which is 1.6% higher than in 2017.
Oil industry of Russia
Russia is one of the largest participants in the global energy market.
During 2000-2019 Russia's share in world oil production increased from 8.9% to 12.6%. Today, it is one of the three countries that determine the dynamics of prices in the oil market (along with Saudi Arabia and the USA).
Russia is a key supplier of oil and petroleum products to European countries; is increasing oil supplies to the countries of the Asia-Pacific region.
Russia's significant share in the global oil market makes the country one of the leading participants in the global energy security system
The largest oil companies in Russia
In Russia, oil production is carried out by 8 large vertically integrated oil companies (VIOCs). As well as about 150 small and medium-sized mining companies. VIOCs account for about 90% of all oil production. Approximately 2.5% of oil is produced by the largest Russian gas production company Gazprom. And the rest is produced by independent mining companies.
Vertical integration in the oil business is the unification of various links in the technological chain of hydrocarbon production and processing (“from well to gas station”):
- exploration of oil reserves, drilling and field development;
- oil production and transportation;
- oil refining and transportation of petroleum products;
- sales (marketing) of petroleum products
Vertical integration allows you to achieve the following competitive advantages:
- ensuring guaranteed conditions for the supply of raw materials and sales of products
- reducing risks associated with changes in market conditions
- reduction in unit production costs
The leaders of the oil industry in Russia in terms of oil production are Rosneft and Lukoil.