![]() ![]() Historically, production was concentrated in West Siberia, but investment has shifted in the past decade to Yamal and Eastern Siberia and the Far East, as well as the offshore Arctic. However, Gazprom still accounted for 68% of Russian gas production in 2021. Gazprom, which is state-owned, is the largest gas producer, but its share of production has declined over the past decade, as Novatek and Rosneft have expanded their production capacity. Gazprom and Novatek are Russia’s main gas producers, but many Russian oil companies, including Rosneft, also operate gas production facilities. In 2021 the country produced 762 bcm of natural gas, and exported approximately 210 bcm via pipeline. Russia is the world’s largest gas exporter. Russia is the world’s second-largest producer of natural gas, behind the United States, and has the world’s largest gas reserves. One of the world’s top oil producers and exporters In 2021 Russia exported 750,000 bpd of diesel to Europe, meeting 10% of demand. Europe remains a major market for Russian oil products. In 2021 Russian refineries processed 5.6 million bpd of crude and exported 2.8 million bpd of oil products. In addition, Russia is a major exporter of vacuum gasoil and heavy fuel oil. However, Russian refiners produce roughly double the diesel needed to satisfy domestic demand, and typically export half their annual production, much of it to European markets. Russia’s energy strategy has prioritized self-sufficiency in gasoline, so it tends to export minimal volumes. As a result, Russia has been able to shift the vast majority of its motor fuel production to meet Euro 5 (10 ppm) standards. Russian companies have spent the last decade investing heavily in primary and secondary refining capacity in order to take advantage of favourable government taxation, as well as growing global diesel demand. Russia has an estimated 6.9 million bpd of refining capacity, and produces a substantial amount of oil products, such as gasoline and diesel. ![]() In addition, Russia also exports crude by rail. Russia also ships crude by tanker from the Northwest ports of Ust-Luga and Primorsk, as well as the Black Sea port of Novorossiysk, and Kozmino in the Far East. The pipeline was part of Russia’s general energy pivot to Asia, a strategy focused on shifting export dependence away from Europe, and taking advantage of growing Asian demand for crude. ![]() In 2012, Russia launched the 4,740 km 1.6 million bpd ESPO pipeline, which sends crude directly to Asian markets such as China and Japan. At present, Russia supplies rougly 20% of total European refinery crude throughputs. The roughly 5,500 km Druzhba pipeline system, the world’s longest pipeline network, transports 750,000 bpd of crude directly to refiners in east and central Europe. Russia has extensive crude export pipeline capacity, allowing it to ship large volumes of crude directly to Europe as well as Asia. Gazprom Neft, Surgutneftegaz, Tatneft and Russneft also have significant production and refining assets. It is followed by LUKOIL, which is the largest privately owned oil company in the country. Rosneft, which is state-owned, is the largest oil producer in Russia. While the Russian oil industry has seen a period of consolidation in recent years, several major players remain. Other grades include Siberian light, Sokol, Sakhalin blend, Arctic oil and Novy Port. It also exports large volumes of ESPO blend crude crude to Asia, via the East Siberia-Pacific Ocean (ESPO) pipeline. Russia produces several different types of crude oil, but its main export blend is Urals, which is a medium sour crude. China is the largest importer of Russian crude (1.6 million bpd), but Russia exports a significant volume to buyers in Europe (2.4 million bpd). In 2021 Russia exported an estimated 4.7 million bpd of crude, to countries around the world. Russia has oil and gas production facilities throughout the country, but the bulk of its fields are concentrated in western and eastern Siberia. In 2021, Russian crude and condensate output reached 10.5 million barrels per day (bpd), making up 14% of the world’s total supply. Russia relies heavily on revenues from oil and natural gas, which in 2021 made up 45% of Russia’s federal budget. It is one of the world’s top three crude producers, vying for the top spot with Saudi Arabia and the United States. Russia is a major player in global energy markets. ![]()
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