Russia to reduce oil and gas production in 2023

2023-03-15

Moscow will reduce oil and gas production in 2023, mainly due to Europe’s refusal to buy Russian hydrocarbons and the impossibility of quickly redirecting these volumes to Asia, Russian Energy Minister Nikolai Shulguinov said on Wednesday.

“We expect in 2023 that the level (of oil production) will be slightly lower, partly due to a voluntary reduction in crude oil extraction,” he said in a report to the Russian Duma (lower house of parliament).

Shulguinov noted that “the level of gas production will continue its downward trend due to both the European market’s refusal to buy it and the redirection of energy flows towards the East”.

The Russian minister recalled that Russia reduced gas production in 2022 after explosions in the Nord Stream and Nord Stream 2 pipelines, which transport Russian gas to Germany.