Without Russian oil, what would the West expect?
Countries promote embargo Russian oil may not be able to find an alternative supplier of crude oil.
European Union (EU) and Britain recently announced plans to ban all Russian oil purchases by the end of the year in response to Russia’s military campaign in Ukraine. The US has announced a complete ban on Russian oil.
Meanwhile, Moscow warned that crude oil cuts would lead to “catastrophic consequences for the global market.” The head of the Organization of the Petroleum Exporting Countries (OPEC), Mohammed Barkindo, recently warned as well. informed EU officials that Russia is the world’s third largest oil producer and second largest oil exporter.
Norway
Norway is Europe’s second-largest oil supplier after Russia, providing 8% of EU oil imports, compared with 27% for Russia in 2021. The country pumps around 4 million barrels of oil a day and forecasts will increase production to 9% by 2024.
In March, Norway announced it would issue new permits for oil drilling and gas, including previously unexplored areas of the Arctic. On a broader scale, however, Norway’s production accounts for only 2% of total global crude demand, meaning the country is only a small competitor. Meanwhile, new drilling sites take time to discover and develop – time that Europe does not, according to RT.
Kazakhstan
The former Soviet republic boasts the largest proven oil reserves in the Caspian Sea region. Most of the country’s crude oil exports go to Europe, accounting for about 6% of the continent’s oil imports.
However, Kazakhstan depends on Russia to export most of its crude through a pipeline from western oilfields through southern Russia to Russia’s Black Sea oil depot at Novorossiysk. This raises the question of whether Kazakh oil will be allowed to reach Europe if it is shipped via Russia.
Nigeria
The country is also among Europe’s oil suppliers, meeting about 6% of the continent’s oil needs. Nigeria used to supply oil to the US but was replaced by Canada when it increased oil sands production.
Nigeria has demonstrated reserves equal to 237.3 times annual consumption. However, Nigeria is troubled by a lack of refineries, while refined petroleum makes up the largest portion of Nigeria’s import bill (about 17%). That means it will be hard for the country to focus on boosting its crude exports while its storage at home is empty.
Middle East
Middle Eastern countries hold almost half of the world’s oil reserves and most of the spare production capacity. However, overinvestment in infrastructure, political conflict and, in Iran’s case, sanctions, could hamper the region’s ability to rescue when the West loses Russian oil.
Eg, Saudi Arabia and the United Arab Emirates (UAE) account for most of OPEC’s spare production capacity. However, Saudi Arabia has repeatedly rejected US offers to increase production. Neither country is likely to redirect oil shipments from Asia to Europe, analysts say, for fear of losing the region’s main buyer, China.
Experts say that Iraq and Libya could boost production, but domestic political troubles make that unlikely. This leaves Iran, which is well-equipped to increase its crude oil production, still subject to US sanctions, and efforts to restore the 2015 nuclear deal with global powers continue to no avail. fruit.
Brazil
Brazil – the world’s 11th largest oil exporter – was recently asked by the US to increase oil production. This was fueled by soaring gasoline prices in the US following the ban on Russian oil. Although oil from Russia accounts for only 8% of US crude imports, supply uncertainty has sent domestic prices soaring.
However, Brazil refused Washington’s request. The country’s state-owned oil company, Petrobras, says output levels are determined by business strategy rather than diplomatic considerations. In addition, Petrobras is also unable to increase production significantly in the short term due to logistical problems.
Venezuela
Washington also reached out Venezuela, which boasts the world’s largest proven oil reserves, pledged to ease some sanctions on the country in exchange for increasing oil exports to the US. However, Washington was later said to have been rejected, although Caracas said production could be increased to at least 400,000 barrels per day.
America
The United States is the world’s top crude oil producer, with output about 11.6 million bpd as of December 2021. However, the country is also the world’s largest consumer of oil, using about 20% of the world’s total production. The US has the ability to boost production and sell more crude oil to Europe, but American oil very light and unsuitable for producing the diesel and gasoline that markets need, both in the US and in Europe.
Canada
Canada is the world’s fifth largest oil producer and has the world’s third largest proven oil reserves. However, the country has limited pipeline capacity and export infrastructure, and it pumps almost all of its oil to the North American market cheaply.
In March, Canada’s Natural Resources Minister pledged to increase production to help solve Europe’s energy crisis, but there are concerns about how much more the country can pump, as production in Western Canada was near record levels last winter.
Canada is said to be able to increase oil production estimated at only 200,000 barrels per day. This will only help the US make up some of the shortfall created by the loss of 500,000 barrels of Russian oil – and there is no clear time frame for when Canada can deliver these.
at Blogtuan.info – Source: laodong.vn – Read the original article here