Russia officially launched a military attack on Ukraine. If the Russian invasion is widespread, it is not impossible that countries in the world will be affected. The economic impact in front of the eyes is the price energy, oil and natural gas, will be increasingly expensive due to the supply crisis currently experienced by Europe.
Russia is known to be the third largest oil producer in the world. The US Energy Information Administration noted that the world’s largest country produces about 11 percent of global oil supplies, or about 10.5 million barrels per day.
Launching Statista on Thursday (24/2), Russia concentrates its energy production in West Siberia, the Ural-Volga, Eastern Siberia and the Far East, Arkhangelsk, and the Komi Republic.
Most of the production comes from the West Siberian and Volga-Ural regions, especially the Priobskoye and Samotlor fields in West Siberia.
Russia’s own oil industry was privatized after the collapse of the Soviet Union. Then, most moved under government control in the mid-2000s.
Russian oil producers Gazprom, Lukoil and Rosneft are among the world’s leading energy companies.
Rosneft is a domestic market leader whose controlling stake is owned by Rosneftegaz, a company wholly owned by the Russian Government.
Reporting from Forbes, Russia is one of the main suppliers of oil to the United States (US). In its report, Forbes said the US consumes far more oil (17.2 million bpd) than Russia (3.2 million bpd) or Saudi Arabia (3.5 million bpd).
Thus the US is the importer of crude oil, while Russia and Saudi Arabia are the main exporters of crude oil.
“It also means that the US economy is more vulnerable to oil price shocks, while higher oil prices are a net gain for Russia and Saudi Arabia,” the report said.
Until the end of 2021, the US imported 8.5 million barrels per day of crude oil from all countries. Canada is a major supplier, shipping 4.5 million barrels per day to the US. Mexico came in second, with 700,000 barrels per day.
Then, Russia is in third position with 595 thousand barrels per day. Meanwhile, Saudi Arabia is the US’s fourth largest supplier with 555,000 barrels per day. Thus, Russia will supply 7 percent of US crude oil imports by the end of 2021.
World oil prices recorded a jump to US $ 100 per barrel, after Russian President Vladimir Putin announced a military operation to the Ukrainian capital, Kiev, in the early hours of Thursday (24/2), local time.
Reporting from CNN Business, the price of Brent oil touched US$ 100.04 per barrel for the first time since 2014. Meanwhile, WTI oil jumped 3.3 percent to US$ 95.15 per barrel.
The supply of oil is already very tight. Analysts have warned that any disruption to oil flows from Russia would push prices higher.
(mrh/bir)
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