Skip to comments.Oil and natural gas sales accounted for 68% of Russia’s total export revenues in 2013
Posted on 07/23/2014 2:26:25 PM PDT by PoloSec
Russia is a major exporter of crude oil, petroleum products, and natural gas. Sales of these fuels accounted for 68% of Russia's total export revenues in 2013, based on data from Russia's Federal Customs Service. Russia received almost four times as much revenue from exports of crude oil and petroleum products as from natural gas. Crude oil exports alone were greater in value than the value of all non-oil and natural gas exports.
Europe, including Turkey, receives most of Russia's exports of crude oil and products, as well as virtually all exports of natural gas. Asia (especially China) receives substantial volumes of crude oil and some liquefied natural gas (LNG) from Russia. Recently, Russia finalized a 30-year, $400 billion deal to supply China with natural gas from fields in Eastern Siberia, which will further increase Russian export revenues. North America imports some Russian petroleum products, particularly unfinished oils used in refineries.
Although Russia exports less crude oil and less natural gas than it consumes domestically, domestic sales of crude oil and natural gas are much lower in value than exports because of vertical integration of the oil and natural gas industry and subsidized domestic prices.
Many Russian oil firms are vertically integrated, owning both the oil fields and refineries that process crude oil. These firms can sell crude oil directly to their own refineries at low prices. Domestic natural gas prices are also subsidized, forcing Russian companies like Gazprom to use export revenue to fund investment in new infrastructure and projects. EIA estimates that Russian domestic sales of natural gas and crude oil were about $20 billion in 2013, based on data from IHS Energy.
Although revenue from domestic sales of crude oil and natural gas in 2013 was significantly lower than revenue from exports, Russian domestic sales of petroleum products, particularly motor gasoline and distillate fuel oil, were approximately $102 billion, similar to revenue from product exports.
Oil and natural gas activities make up a large portion of Russia's federal budget. According to the Ministry of Finance, 50% of Russia's federal budget revenue in 2013 came from mineral extraction taxes and export customs duties on oil and natural gas.
And yet another reason to drill, drill, drill, and drive oil prices down. You diminish the economies of the middle east and Russia at the same time.
If we had some eggs, we could have ham and eggs, if we also had some ham.
At the moment, we have neither the national will, nor the infrastructure is a ready-to-operate mode, to really deliver a challenge to the amount of leverage the Russians have in international natural gas and petroleum marketing capabilities.
We are in line to become the greatest producers and EXPORTERS of natural gas, in the form of Liquified Natural Gas, if our fleets of cryogenic LNG tankers were already built or under construction. But this would involve also building additional natural gas pipeline capability, and there seems to be some hesitancy about proceeding.
So when McCain called Russia “a gas station masquerading as a country”, he was right.
Britain is sitting on 100 to 400 years of natural gas reserves that could be recovered via fraking. However, the stupid Brits are completely brainwashed by the eco-fascists and worship at the global warming altar. They would rather freeze in the dark than upset their new god Gaia.
“And yet another reason to drill, drill, drill, and drive oil prices down. You diminish the economies of the middle east and Russia at the same time”
There was a time when America had leaders that understood that. It is how Reagan bankrupted the Soviet Union.
But, in today’s world, we have leadership that is too beholden to the radical left to stay in power, who would NEVER consider doing that.
They would lose too many supporters, with BIG bucks.
Most of the other 22% is weapons.
Russia is industrially challenged and that is Putin’s most pressing problem.
The Koreans will even offer a discount for quantity purchases, too, if that's what it takes to win the deal away from the Japanese. And don't rule out India helping them to solve that challenge, either, they'd even barter for military equipment instead of energy.
The problems of having energy and not much else aren't tough to overcome unless you're a Saudi Prince or Muzzie who figures the people don't matter any more than sheep.
Yeah, and it’s mostly Europe paying the bill. That gas is going to Europe. In other words, Europe is financing Europe’s problems in Ukraine. Put another way, Europe is paying for its biggest security threat. And while all this is going on Europe is closing coal plants, nuclear plants, refusing to frack their shale, and betting the farm on unproven green technologies. Morons.
Remember when we spiked their pipeline regulation software and made the trans-Siberian go boom? Good times.