Shale Delayed By LNG And Arctic
BMI View: Limited progression on Russian shale oil projects highlights their unattractiveness next to Arctic and LNG developments. Despite vast potential resources, IOC interest and improved incentives, we expect slow progress on shale oil development and a greater focus to be put on Arctic exploration and LNG.
Doubts are emerging over the profitability of developing Russia's unconventional oil assets, with unfavourable policy a key restraint. Despite a number of major co-operation agreements, Arctic shelf exploration and liquefied natural gas (LNG) projects are taking precedence.
Russia is potentially sitting on the largest reserves of shale oil in the world, with the Bazhenov shale estimated to contain 74.6bn barrels of recoverable oil resources, according to an EIA study. In addition, the Russian government expect other potential shale plays in Western Siberia, including Domanik, Tyumen and Achimov, to offer considerable production opportunities in the next 20 years.
|Peaking In 2016|
|Russia Oil Production|