as russian sanctions tighten, what are the major repercussions for the sector?
TRANSCRIPT
As Russian Sanctions Tighten, What are the Major Repercussions for the Sector?
CHAIR Nelli Sharushkina - Bureau Chief, Moscow Energy Intelligence
Monica Enfield - Director of Research, Energy Intelligence
Nick Gee - Partner, Buckthorn Partners
Chris Weafer - Founding Partner, Macro Advisory
Nick Gee
Partner
Buckthorn Partners
As Russian Sanctions Tighten, What are the Major Repercussions for the Sector?
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19851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013
RussianOilProductionandGlobalOilPrice
OilProductionMbd OilPrice$2013Real
Source: BP Statistical Review of World Energy 2014
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Monica Enfield
Director of Research
Energy Intelligence
As Russian Sanctions Tighten, What are the Major Repercussions for the Sector?
Russia: Sanctions and Company Strategy Impact
Minimal production risk at present due to limited sanctions scope
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BP* Total Shell ExxonMobil Eni Repsol Statoil
mboe/d Russia: Oil & Gas Equity Production
(2013)
Share of
global
company
production
31.7% 1.9% 4.5% 0.6%6.9% 5.0% 2.1%
980‒ Limited immediate impact on
Western firms’ near-term production
outlook, given sanctions focus on
unconventional and difficult reserves
‒ Impact on equity production in
Russia can be offset through the
majors’ near-term net growth plans
from a global project queue.
‒ Majors are pursuing complex plays
across the globe as part of a longer-
term strategy to access resources.
Source: Energy Intelligence, Evaluate Energy, Company data. *BP data reflects 2H13-1H14 data—the most recent data available since combined accounting.
Base Production
Rosneft Equity Tight Oil
Sakhalin-I Arctic
Yamal Fields Yamal LNGTight Oil Shtokman
Yamal Fields
AROG JV
Sakhalin-II
Salym EOR
Exploration Appraisal Development New Resource Production
Arctic
Tight Oil
Arctic
Tight Oil
Arctic
Black Sea
Tight Oil
Black Sea
Nearly all the initiatives
and partnerships for new
challenging plays between
the majors and Russian
firms are still in an initial
exploration stage.
Russia: Sanctions and Company Strategy Impact
New partnerships represent long-term resource access options