Russia set to reach record high pre-Covid oil output levels

The Russian Ministry of Energy has said the nation’s oil production could once again reach record highs comparable to the Covid-19 pandemic and the ensuing oil market crisis.

“We believe that in 2023-2024 production will amount to about 560 million tons. Our task is to ensure the competitiveness of our resource on the global market, and not to chase only the production figure,” Russian Energy Minister Nikolay Shulginov said in an interview with business daily Kommersant, published on Wednesday.

In 2019, Russia set a record for oil production at around 560.3 million tons. At the end of 2020, oil and gas condensate output amounted to 512.8 million tons. This year production is expected to grow to 522 million tons, Deputy Prime Minister Alexander Novak projects.

According to Shulginov, “It is too early to talk about the end of the oil era,” even taking into account the decarbonization trend. Russia needs to continue “to monetize its reserves,” he said, adding that in the future it makes sense to stabilize oil production levels.

Many countries around the world have been voicing their plans on abandoning fossil fuels against the backdrop of the global climate agenda. Russia is also looking in that direction, but will not completely abandon traditional energy sources yet, the minister said.

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