The Trillion Question: lack of investment leads to oil shortage

Marcel Salikhov, President of the Institute for Energy and Finance, commented to the Izvestia newspaper about investments in the oil and gas industry:

— For Russian companies, underinvestment is not the most urgent problem compared to the search for alternative markets and reorientation of supplies to them. Russia will cut production by 500,000 bpd this year. This suggests that there is potential to increase production, at least in the coming years. The data that is available now also does not indicate a reduction in investment activity. For example, Rosneft increased investments by 19.3% in the first nine months of 2022,” he notes.

However, the interlocutor of Izvestia added that on the horizon of 3-5 years, companies may encounter difficulties in implementing complex projects (offshore, hard-to-recover reserves, etc.) due to difficulties in attracting Western technologies, but such difficulties can be compensated by increasing drilling and more "simple" projects.