Measurement and Testing

  • How Strong is Russian Oil?

How Strong is Russian Oil?

Jun 11 2018 Read 561 Times

Churning out an estimated 11 million bpd, Russia cradles one of the biggest oil industries on the planet. Now, the nation is flexing its muscles and proving its oil industry is more resilient than analysts may think. Despite sanctions imposed by both the US and Europe, companies like TMK are running at full capacity. The group is Russia’s largest manufacturer of steel pipes and is set to play a key role in pushing forward the nation's bullish industry.  

“For seamless pipes we are working at full capacity. In terms of metres, we are at full charge,” asserts Sergey Chetverikov, the plant’s CEO. “There is a huge demand for thin-walled pipes, casing pipes for wells, for the oil and gas industry.”

Dwindling Russian rouble elevates national revenue

So what's fuelling Russia's booming oil industry. There are several factors at play, including a recent surge in oil prices prompted by an embargo put in place by Russia and the OPEC member states. It slashed crude output by 1.8 million barrels a day which helped to increase demand and lift prices back up from lows of under US$30 a barrel. Simultaneously, the value of the Russian rouble has dropped which has increased revenue for local oil producers. The market has also been spurred by initial successes in the Arctic, a region that's remained largely untapped until now.

The figures speak for themselves, with Russian oil and gas companies clearly reaping the benefits. Rosneft, Russia's largest petroleum refining company, recently reported an enormous seven-fold spike in first-quarter net profits. Similarly, Moscow-based multinational energy corporation Lukoil saw a year-on-year increase of 75%. Gas companies are also cashing in, with Gazprom, Russia's leading natural gas extractor reporting an 11% increase in profits. Investors have been quick to respond, with the Moscow stock exchange’s oil and gas index hitting a record high in May.  

Full steam ahead for Russian producers

Chetverikov is confident the market will continue to perform, asserting that there's exceptionally high demand for drilling pipes, as well as technically complex products. “We have long-term investment plans for new capacity, and for research and development,” he says.

As Russia's energy industry gains momentum, producers will be looking at new ways to boost efficiency and maximise profits. Highlighting the issue of refinery corrosion, '4 ways to effectively monitor total chlorine in liquid hydrocarbons' introduces the latest Clora® Benchtop Analyser technology from XOS, a global leader in application-specific XRF analysers.

Read comments0

Do you like or dislike what you have read? Why not post a comment to tell others / the manufacturer and our Editor what you think. To leave comments please complete the form below. Providing the content is approved, your comment will be on screen in less than 24 hours. Leaving comments on product information and articles can assist with future editorial and article content. Post questions, thoughts or simply whether you like the content.

Digital Edition

Petro Industry News September 2018

September 2018

In This Edition Fuel for Thought - New Partnership for the US Distributio - Element opens new oil and gas laboratory in Singapore - Metrohm Acquires B&W Tek Analytical Instrumentation...

View all digital editions


NSC Conress & Expo

Oct 20 2018 Houston, USA

Offshore Energy 18

Oct 22 2018 Amsterdam, Netherlands

Oil & Gas

Oct 23 2018 Kiev, Ukraine

Waste and Recycling Expo

Oct 24 2018 Toronto, Canada

View all events