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?
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