Minister of Energy: Russia’s oil production will fall by 1.5 percent in 2023

Russian Energy Minister Nikolai Shulginov was expected to decline by 1.5 percent to 527 million tons (10.54 million barrels per day) this year from 535 million in 2022, Izvestia newspaper reported, citing Russian Energy Minister Nikolai Shulginov on Wednesday.

Russia, the second largest oil exporter after Saudi Arabia, has stopped or postponed the publication of some key energy data, including information on production and exports, since it began its military operation in Ukraine last year.

Analysts say the lack of transparent official data from one of the world’s largest oil producers makes monitoring global supplies and analyzing markets more difficult.

Russia has publicly pledged to voluntarily reduce its oil production by 500,000 barrels per day, or about five percent of its production, since March, in an effort to control oil markets.

In addition, Russia said it would reduce oil exports by 300,000 barrels per day until the end of the year, while leading oil producer Saudi Arabia also voluntarily reduced its production by one million barrels per day until the end of December.

In response to whether Russia is satisfied with its production, Shulginov explained to the newspaper, “We have to take into account that we are working with other countries that are working to create a balance (in the energy market).

“At the same time, it (oil) is needed by both the producer and the buyer. So this is a decision that was agreed upon and we are happy with it.”

The Russian Energy Minister added that natural gas production is expected to decline to 642 billion cubic meters in 2023 from 672 billion cubic meters in 2022.