Russia’s Oil Revenues Plunged By 48% In February

Oil Price ^ | 3/3/2023 | Charles Kennedy

[House Atreides]

“ There have been many pro-Kremlin shills here on FR who have been saying that the sanctions against Russia have actually helped Russia and have brought about record profits. Are you one of those guys?”
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Look, the sanctions “against Russia” have helped no countries except for China and India. And they have dealt a devastating financial blow not only to Russia but also to Western Europe and, to a somewhat lesser extent, the U.S. There are many PATRIOTIC FReepers who oppose the madness of the UKRAINE PROJECT but you feel free to attack them if you want. I forgive you as you know not what you do.

PS - The last sentence above, while true, was thrown in to annoy you because of your insult directed at me. Now off you go to support Nikki Haley or whatever neocon of the day is in favor at the moment.

[Williams]

But but but the fantasizers here constantly tell us that Russia’s oil income is soaring. How can this be?

[marcusmaximus]

Putinist math:

50% drop in oil prices

+ additional 30% discount to China and India

= Soaring Oil Income

[PGR88]

Unfortunately, this "Moscow Times" article, based on a Saudi study used to justify IPO of Aramco (which doesn't exist on the web any longer) is typical of the bullshit, sloppy logic, and misinformation that characterizes debate about Russia and Ukraine on FR, and elsewhere

I am able to access several sources immediately which show that Russian oil production costs are among the lowest in the world. I have posted just one of those. The EIA, a well-respected site, offers similar figures.

Are they correct? I don't know. To know for sure, one would have to be an insider at Gaszprom. But its certainly more correct than the crap Moscow Times puts out.

[ought-six]

Oh, I can appreciate someone opposing the “UKRAINE PROJECT,” and if they just stopped there, no harm no foul. But when in the next breath they laud and cheer on Russia they have chosen sides, and the side they have chosen has interests inimical to ours. It’s really pretty simple.

As for your leap that I insulted you, you clearly did not read my comment with any sense of comprehension. I said there are some here on FR that have said the sanctions against Russia not only helped Russia, but produced record profits for Russian concerns; and I asked if you were one of them.

Since you did not answer my question, I can only conclude that (1) you didn’t understand the question; or (2) you are one of those guys and were afraid to answer in the affirmative.

[nickfrost1]

Russia simply cut pumping for 0.5 mln barrels per day. Reason she doesn’t need so much foreign cash because she diminished her import too. That is a main reason of diminishing oil-gas revenues.

In previous years she just stored extra cash in foreign accounts but today it is NOT wise anymore. So all these mean that the trades with foreign countries go down. Less export means less import from Europe for example.

But GDP of Russia will go up this year 2.5%. How so? Because instead of importing Russia began to make their own production.

[House Atreides]

“… Since you did not answer my question….”
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Look, I know IQ can not be taught but read the second sentence of my reply.

[ought-six]

Ah, you did. I missed it.

[marcusmaximus]

Oil is down 50%. That’s the reason Russian oil revenues are down 50%.

And that doesn’t include the 30% discount to China and India.

[Kazan]

How do you Marcus is lying? His fingers are moving.

Never mind, that Russia was collecting record high oil revenue last year at this time because of the idiotic sanction war Biden implemented.

Now, Russia's oil revenue is line with what it was in 2021 but European electric and gas bills are 50% to 80% higher.

[marcusmaximus]

What Russian oil prices doink?

[marcusmaximus]

[nickfrost1]

Oil is down 50%. That’s the reason Russian oil revenues are down 50%.

And that doesn’t include the 30% discount to China and India.==

There is NO such discount at all. Here: https://oilprice.com/Latest-Energy-News/World-News/Academics-Russia-Selling-Oil-Way-Over-Price-Cap.html

And oil revenue down because Russia diminish pumping for 0.5 mlns barrels a day. Russia simply decreased her IMPORT. SO the industry of Europe must now diminish her production.

It is a 2-way street.

[dennisw]

Most of Russia’s oil comes from permafrost regions, where it is very difficult to operate/ Russia’s oil is not among the cheapest to extract, also called lifting the oil.

[dennisw]

Russian oil costing average 45 dollars to lift. This was in a YouTube video. I will see if I can find it. He also mentioned 11 dollars extra to transport Russian oil to far off Indian and Chinese ports.

[marcusmaximus]

LOL! Putin asked China and India to give up the 30% discounts and they told him no. So now Putin is taxing his oil companies based on the price of American oil, not Russian oil. Too funny!

[Paul R.]

That’s essentially correct.

Russia has an added problem, though, because if they cut back from regions of permafrost, those wells can be long-term damaged, and the Western expertise that kept ‘em running in those harsh conditions anyway has all left. If they cut back from more, uh, benevolent areas, overall profits decline further.

February being even worse than January rather quashes the idea Jan. was just a fluke. China and India are gloating behind Pooty’s back for sure. But IF this continues, Russia has a big problem. In addition, I still think Saudi & co. might take the opportunity to knock out a major competitor for years by raising production this fall. They tried this vs. the US in the past, but the US always bounced back fairly quickly. We don’t have that permafrost problem, except for limited production in Alaska.

[Rdct29]

Wow. That's pretty delusional. How about just holding on to their own country first. Who will lead their invasion for them? Zelensky? Don't think so.

[dennisw]

https://www.youtube.com/watch?v=QU0resswOds

Tune in at 24 minutes in, when the Yale professor says it costs Russia 45-46 dollars/barrel to extract its oil. Then add on another $10-12 for shipping to far off Asian nations

BTW I have also seen this 45-46 dollars/barrel (to extract Russian oil) number elsewhere.

[dennisw]

Russia has an added problem, though, because if they cut back from regions of permafrost, those wells can be long-term damaged, and the Western expertise that kept ‘em running in those harsh conditions anyway has all left. If they cut back from more, uh, benevolent areas, overall profits decline further.

Peter Zeihan has been taking about this for months in his you tube videos. When Russian oil comes up in their permafrost regions wells there is water content mixed in with the crude oil. If the oil is not moved out to pipelines and onwards to export terminals....Then this crude stays trapped and stagnant. Then the water will freeze and burst/ crack open wellheads and pipes. In fact this took place in the early 1990s when Russia was in chaos. It took 20 years to repair all this damage. The repairs were done by European oil service companies. The Roooskies didn't have their shyte together to do this.