That will definitely crimp supply five years out, say 2028-ish.
From OilPrice, December 1:
- Upstream oil and gas investment in Russia is set to decline by $15 billion this year as a result of Western sanctions and the exodus of foreign companies.
- According to Rystad Energy, investment in Russian upstream oil and gas hit $45 billion last year and was expected to rise to $50 billion in 2022.
- This is likely to be the start of a multi-year slump in investment, with Russia’s LNG industry set to be hit the hardest.
Investment in the upstream oil and gas industry in Russia could decline by $15 billion this year as a result of Western sanctions, Rystad Energy has calculated, saying the total for the year could end up around $35 billion.
The analytical firm noted that Russian upstream investments stood at $45 billion last year, increasing from $40 billion in 2020. Before Russia’s invasion of Ukraine, upstream investments in the country were expected to rise to $50 billion in 2022, but sanctions have begun to bite and investment is set to decline substantially amid the exodus of Western oil companies from the country.
According to Rystad, investments would remain lower than normal until at least 2025 but this would likely affect smaller oil companies, while Gazprom and Rosneft will be able to continue spending as they were spending until this year, the company said....
....MUCH MORE
