Report

Russia’s Unsustainable Business Model: Going All In on Oil and Gas

January 19th 2021 - 08:38
Russia’s Unsustainable Business Model

Russia’s dependence on revenues from oil and gas production is now higher than that of the Soviet Union in the 1980’s. The prospects for fossil fuels however, have deteriorated in recent years.

US shale oil gives a downward pressure on oil prices and the ever-increasing determination to actively combat climate change is expected to result in decreased oil demand. In addition, it is becoming increasingly challenging to maintain Russia’s oil production at its current level. Although Russia’s gas reserves are plentiful, making money from them is getting more and more difficult, partially because LNG has become the dominant way for long distance gas transport.

How does the Russian oil and gas industry, and the Putin regime in general, deal with these challenges and what are its prospects?

Find out in this new HCSS paper by Jilles van den Beukel and Lucia van Geuns.

Download the Factsheet here. 

Jilles van den Beukel is an energy specialist. His research focuses on the oil and gas industry, energy markets and the energy transition. He is a regular contributor to IEX, Energeia (the energy news service of the FD) and various research institutes and think tanks.
Lucia van Geuns is an experienced energy professional who held research positions at the Netherlands Organisation for Applied Scientific Research (TNO) and the Clingendael International Energy Programme (CIEP) after a career with Royal Dutch Shell (1980- 2002). She has a background in geoscience, petroleum engineering, economics & planning. Her research focuses on international energy market developments, energy transition issues and climate change policies. In her present role, she is a frequent speaker on (international) energy markets for various public and private stakeholders.