Russia's Energy Minster, Sergei Shmatko, says domestic annual oil output will rise from 3.66 billion barrels in 2009 to 3.70 billion barrels of oil this year. Mr. Shmatko says:
"We will produce over 500 million tons¹ in 2010. The Economic Development Ministry has adjusted its forecast for the ruble rate. We have said firmly before that we will see an investment decline and probably a fall in output due to the ruble strengthening and the growth of the mineral extraction tax on oil. Now there are no explicit assurances, we should weigh up everything adding that the previous Economic Development Ministry's forecast was that oil production would fall from 2012."(1 ton of oil is equal to 7.4 barrels of oil)
Oil production is forecast to increase in Russia this year on rising output from several oil producing fields including TNK-BP's Uvat oil fields in western Siberia, Surgutneftegaz's Talakan development, Lukoil's (NASDAQ: LUKOY) Yuri Korchagin in the Caspian Sea, and Rosneft's (LSE: ROSN) Sakhalin-1 project.
Russian oil production reached a post-Soviet record in June of 10.15 million barrels of oil per day. Last month, Russia oil production slipped a bit to 10.06 million barrels of oil per day.
In response to increasing output, the Organization of Petroleum Exporting countries (OPEC) is urging Russia to slow down oil production in the future. OPEC Secretary General Abdallah Salem El-Badri said Russia's rising production is likely to affect OPEC's operations in near future.
OPEC's President Abdullah el-Badri said last week that the 12-member, oil-producing cartel was seeking stability in pricing and expressed his concern over Russia's increased crude output. Mr. el-Badri said, "If this level of production is going to continue, Russia may have to slow down a bit."
Oil Platform at the Sakhalin-I field in Russia
Russia is very wealthy in natural energy resources.
The country is home to the world's largest natural gas reserves and eighth-largest crude oil reserves. And today, Russia is the world's largest producer of both oil and natural gas, accounting for about 20% of total global production.
Also found in Russia are massive reserves of metals and minerals including gold, silver, platinum, copper, nickel, zinc, diamonds, etc.
Some of the country mineral reserves are so plentiful—like Russia's palladium reserves—they've enabled Russia to almost completely control certain markets.
In fact, over 50% of the world's palladium supply comes from just three sources in Russia.
All told, Russia's natural resources are worth some $200 trillion by some estimates.
In my latest free report for Wealth Daily, I discuss Russia's palladium industry and give the details of a special domestic investment idea that I believe is set to increase ten-fold as palladium prices increase.
You can read my special free report right now by clicking here or going to the Wealth Daily website and search for the title: Palladium Outlook for 2011.
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits