Russian Oil Production Collapses to 20-Year Low [View all]

Source: Newsweek

Published Dec 30, 2024 at 11:21 AM EST | Updated Dec 30, 2024 at 11:51 AM EST


Russia's average daily production of crude oil in 2024 slumped to its lowest level in nearly two decades, according to the latest figures, which reportedly show the impact of Ukrainian drone strikes on Russian energy infrastructure. Data from oil trade analytics platform Seala showed that crude oil production this year in Russia averaged 1,254 metric tons per day—the lowest since 2005.

Military news site Militarnyi was among the Ukrainian media outlets that cited the figures, along with data that production at oil refineries in Russia had fallen to their lowest levels since 2012 because of unscheduled repairs following the drone attacks. Newsweek has contacted Russia's Finance Ministry for comment by email.

Why It Matters

Oil is a key revenue generator for Russia, which is the world's third largest producer of the resource, accounting for over 12 percent of global crude oil production. That is why oil was targeted by Western sanctions that aimed to punish Russia and President Vladimir Putin for his 2022 invasion of Ukraine and choke off funds for his war machine.

These include a G7-imposed $60 price cap on a barrel of seaborne oil, which Russia has managed to evade through a so-called shadow fleet of vessels whose links to Moscow are hidden, often through shell companies. Meanwhile, Ukraine has succeeded in hitting oil production sites in Russia with drone strikes deep inside the country but often not claiming responsibility.

Read more: https://www.newsweek.com/russia-oil-20-low-production-2007388