Sanctions and low oil prices will affect resources development, but this influence will not be crucial

18 september 2015 | Rossiyskaya Gazeta

The President of Venezuela Nicolas Maduro announced the launch of a "constant battle" for the oil prices rise. He proposed to convene a summit of the countries - exporters of oil (from OPEC and independent ones) so that the oil excess in the world market would be done with. Mr. Maduro worries about the future - almost all oil-producing countries reduced investments in production, delayed some projects. Russia is no exception.

Alexander Kurdin
Alexander Kurdin
Department for Fuel and Energy Sector

"Sanctions and low oil prices, of course, will contribute to the slowdown of resources development, but this influence will not be crucial, and these factors will soon be exhausted. They will affect mostly the prospects of the Arctic oil. Nevertheless, by 2035, the offshore oil production will triple to 50 million tons a year," Alexander Kurdin, the Head of the Department for Strategic Studies in Energy of the Analytical Center for the Government of the Russian Federation,  commented on the situation.

The expert believes that the Nicolas Maduro initiative is unlikely to lead to practical results. According to him, this is an attempt to at least verbaly influence investors, and that is it. "Obviously, there are countries that will not bind themselves with restrictions on the oil production. Firstly, the United States. Even within OPEC we fail to overcome a conflict of interest, since Saudi Arabia holds the production to the maximum. And a 'bigger' initiative that goes beyond the organization, will not achieve success,"  considers the expert.