Russia's 2013 Oil Production Surges to Post-Soviet Record

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Researched by Industrial Info Resources (Sugar Land, Texas)--Russia, the world's biggest oil producer, boosted crude oil production 1.6% in 2013 to a post-Soviet Union high of 10.51 million barrels per day (BBL/d). According to figures from the Russia Energy Ministry, it was the fourth consecutive year that Russian crude production has exceeded 10 million BBL/d, keeping it ahead of Saudi Arabia.

Russia had established its previous oil output high in 2012, when it reached 10.4 million barrels a day. According to the International Energy Agency (EIA), Russia's oil production reached the all-time peak of 11.41 million BBL/d in 1988, when it was still part of the Soviet Union.

Oil production in Russia has been steadily growing since the setback caused by the global financial crisis in 2008, which saw output drop to about 9.8 million BBL/d. In September 2009, it exceeded a monthly level of 10 million BBL/d. Russia overtook Saudi Arabia as the world's largest oil producer the following year.

Also, Russia's natural gas production rose 2.1% last year to 668 billion cubic meters.

State-owned OAO Gazprom (MCX:GAZP) (Moscow, Russia) faced tough competition from privately-held companies like Novatek and LUKOIL. Gazprom's production was reported at 476.1 billion cubic meters, down from 478.8 billion cubic meters in 2012, and well off the 2011 output of 513.1 billion cubic meters.

The drop reflects the reality that almost all of Gazprom's foreign sales are focused on European and post-Soviet countries, which are experiencing some of the slowest growth rates in the world.

Gazprom also is ramping up production of gas condensate as it seeks to diversify from its traditional, but stalling, pipeline supplies of blue fuel to Europe. Russia's shale supplies are only now being probed in detail, and estimates vary over how much oil and natural gas they might hold.

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