The oil fields in Russia are drying up fast (click to enlarge)
The Russian Energy Ministry on Oct. 2 released its oil production figures for September, indicating that oil production fell for the ninth straight month. Oil production fell 0.4 percent in September compared to the same period last year, to 9.83 million barrels per day (bpd). If this decline continues — and it most certainly will, since output normally contracts during the winter due to the lack of river shipping options — for the rest of the year, it would be the first time since 1998 that Russia has experienced an annual oil production decline.
As if the world needed any more evidence that Vladimir Putin is simply lying whe he claims Russia wants to be a civilized and reliable partner for the supply of energy, the Moscow Times reports:
The Russian government deliberately engineered the recent slowdown in oil production by imposing high taxes on the industry, two eminent U.S. economists contend in a new book. The claim, by Clifford Gaddy and Barry Ickes in a book to be published by the London-based Center for European Reform this week, contradicts statements by the government that it is seeking to increase output. Gaddy, of the Brookings Institution, and Ickes, of Pennsylvania State University, co-authored a chapter for the book, “Pipelines, Politics and Power: The Future of EU-Russia Energy Relations.”
Has anybody got a spare Viagra for the RTSI?
On Monday, crude oil prices jumped 16%, the largest one-day spike in history.
On Tuesday, the Russian RTS oil and gas index closed down (yes, down) nearly 3.75%, and the overall market was down 2.85% to close at 1272. The market is down more than 1,100 points — over 45% — since its May record high and down 400 points — nearly 25% — just in the past month alone.