What kind of oil does Russia sell? Oil production and sales

Oil is one of the types of export raw materials that play an important role in the Russian and world economy in recent decades. What kind of oil does Russia sell?

Historical reference

Even in ancient times, people knew about the properties of oil. It was collected from the water surface or the surface of the earth. But it was not so widely used. In the 19th century, when the kerosene lamp was invented , the demand for this raw material increased significantly. It was then that methods of drilling wells in oil and gas bearing seams of the earth's crust began to be developed. After the discovery of electricity, the demand for oil decreased.

However, at the end of the 19th century, an internal combustion engine was developed, which served as an impetus for the development of the automotive industry. Initially, only rich people could afford to buy a car, but then they became available to virtually all segments of the population. In this connection, the demand for petroleum products has sharply increased. And to this day oil remains a valuable natural product, as it provides the possibility of human movement by land, water and air.

Oil production in Russia

In modern Russia there has been a steady increase in oil production since 2000, but in the last five years the pace has slowed somewhat, and in 2008 even slightly decreased.

Since 2010, oil production has exceeded the level of 500 million tons per year. And to this day it keeps above this bar. For two years in a row, namely in 2009 and 2010, Russia was the first oil producer in the world. But already in 2011 the first in this industry was Saudi Arabia.

The Russian Federation is one of the most important participants in the world economy. The share of Russian raw materials in world oil production is more than 12%. Oil exports are carried out both to Europe and to the states of the Asia-Pacific region.

In our country, oil production is carried out by vertically integrated companies. In total, there are 9 such large enterprises. They produce more than 90% of all oil in the country. There are more than 150 small and medium-sized oil producers. The state-owned company Gazprom produces about 2.5% of the total raw materials, while the leading role in this matter is given to independent enterprises.

What is the meaning of vertical integration? If we represent the entire cycle of oil production and processing of raw materials in the form of a chain, then the unification of these links will be integration. The sequence of the technological process is as follows:

• Oil prospecting, well drilling, development of the field infrastructure;
• Oil production and transportation of raw materials:
• Receipt of petroleum products and their transportation;
• Sale of petroleum products (marketing).

This technology structure allows to achieve a number of advantages over competitors:

• Guaranteed supply of raw materials and marketing of petroleum products;
• The risks associated with changes in market conditions are significantly reduced;
• Production is optimized.

The enterprises of Rosneft and Lukoil are absolute leaders in our country in terms of oil production.

General information about oil grades

The properties of oil, which is extracted in various natural and climatic zones, are very different. According to the definition, oil is a liquid of oily viscous structure, having a rich black color. But it is not always the case. The color of "black gold" has many gradations - from yellow-brown and transparent to black.

The structure and melting point are also variable. There are varieties that solidify in the mid-summer conditions, while others remain liquid even at very low temperatures.

After the oil is extracted from the well, it must be transported to the processing site.

So what brand of oil does Russia sell and how many such varieties exist?

In our country, 7 varieties of oil are extracted and exported, while in the world there are more than 20. The main export grade is Urals. The cost of each particular brand is determined by the discount or markup with respect to the marker grade. In general, Brent, WTI, Middle East Crude serve for this purpose.

If we talk about the dynamics of the price of Brent, then for the last 3 years it has significantly fallen in price from 120 to 38 dollars per barrel. To date, its price is around 40 dollars.

Urals

This variety has the largest share in the export of Russian oil - 55%.

Urals oil appeared on the world market in the 70's.

This is a grade with a high content of sulfur impurities. Urals is formed during the transportation of raw materials through the pipeline of the company "Transneft" from the fields located in the Urals, the Volga region, and also in Western Siberia.

Urals oil is exported via supplies via the Druzhba pipeline to Europe. Also exports are through ports in the Baltic (Ust-Luga and Primorsk) and Black (Novorossiysk) seas. The geography of supplies is very limited, so this variety can not a priori be a marker.

The cost of Urals is determined by a discount of 1% in relation to Brent.

What brand of oil does Russia sell, in addition to Urals?

Rebco

The name of this variety consists of the first letters Russian Export Blend Crude Oil. Actually, this is the same Urals, which is delivered through Primorsk. The price quotation is determined by a discount of 1.3% in relation to Brent. It is traded on the New York Mercantile Exchange. The share of exports in the total volume is about 25%.

SiberianLight

It is a brand of light raw materials.

The extraction is conducted in the Khanty-Mansiysk Autonomous Okrug.

Transported through the pipeline of Transneft, where it mixes with the Volga and Urals oil, resulting in Urals. However, only a small fraction of West Siberian oil is traded as an independent brand. Basically, shipments are made through the port of Tuapse.

The price of Siberian Light is determined by a 0.5% discount to Brent.

Sokol

High-quality Sakhalin oil with low sulfur content. The price of Brent crude oil is lower than that of Sokol. The cost is determined by a premium of 7.5% to the grade Dubai. The extraction is carried out within the framework of the large-scale Sakhalin-1 project. Export is carried out through the village of De-Kastri, which is located in the Khabarovsk Territory.

Vityaz

The oil grade produced in Russia is also on Sakhalin Island, like Sokol. The cost of this grade is tied to the brand Dubai. The cost of Vityaz oil is determined by a premium to Dubai of 6%. Export is carried out through Prigorodnoye settlement in the Sakhalin region.

Espo

ESPO has been trading in oil relatively recently.

The variety has received such a name, because it is transported by the same pipeline ESPO ("Eastern Siberia - Pacific Ocean" or "East Siberia - Pacific Ocean"). The project for the construction of this oil pipeline is quite promising, as it involves the supply of "black gold" to the People's Republic of China and the Asia-Pacific region.

This brand of oil produced in Russia represents a mixture of raw materials from various fields that are already in operation. Its quality is much superior to all known varieties of Urals.

The cost is determined by a surcharge of 3.5% to Dubai Crude.

ARCO

This variety is produced in the Arctic on the Prirazlomnoye field, which is located in the Pechora Sea. This is the only offshore deposit in the world where the development is carried out in a 60-kilometer distance from the coastal zone on a stationary platform. From the shelf, oil reserves of more than 70 million tons are extracted.

The price of Brent crude is lower than that of ARCO.

Several kinds of oil are produced on the territory of our country. However, only 7 are traded to Brent crude. What brand of oil does Russia sell on the international exchange? The main export varieties are Urals and Rebco. Their share in exports is more than 2/3 of the total. Vityaz, ARCO, Sokol, Siberian Light and ESPO are also exported. The most promising is the variety ESPO, which in the near future can become a marker, as its deliveries are made to the countries of the Asian region.