Rosneft criticizes oil production increases

Igor Sechin, CEO of Rosneft, criticizes the increase in oil production capacity, saying it could destabilize the market despite OPEC+'s reduction efforts.

Share:

Capacité production pétrole

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The expansion of oil production capacity by Western and Middle Eastern companies was recently criticized by Rosneft CEO Igor Sechin at the St Petersburg International Economic Forum. Sechin pointed out that the combined production capacity of Saudi Arabia, the United Arab Emirates, Kuwait and Iraq amounts to 5.6 million barrels per day, or 13% of current OPEC+ production.

Phantom barrels” and their impact

According to Sechin, the creation of reserves by oil companies, both in the West and in the Middle East, can be interpreted as an anticipation of significant market changes. These “phantom barrels”, capable of massively influencing the market, neutralize the effects of voluntary production quota cuts by the mainOPEC+ participants. This situation is also reflected in market prices, which fell after the recent decision by ministers from OPEC+ participating countries, including some members such as Russia. It agreed on Sunday to phase out voluntary cuts of 2.2 million barrels a day over a year, starting in October. At the same time, the other reductions, totaling 3.66 million barrels per day, will be maintained until the end of 2025.

The outlook for global oil demand

Despite expectations of “peak oil”, global oil demand continues to grow. According to OPEC forecasts, primary oil demand is set to increase by almost 20%, reaching 116 million barrels per day by 2045. Sechin maintains that this projection offers a realistic vision of the world’s energy future. Sechin also addressed current market uncertainties, such as the outcome of the US presidential elections in November, and expressed skepticism about the green energy transition, which he sees as an illusion unsupported by cost-effective sources.

The impact of restrictions on Russian oil

Sechin mentioned that the budgets of most OPEC+ participants can withstand a possible drop in oil prices, which could be partially or totally offset by an increase in supply. A fall in prices could also lead to the lifting of restrictions on Russian oil imposed by the West’s $60/barrel price cap. Sechin concluded by pointing out that high interest rates, in the 18-19% range, discourage the investment processes in the real economy that are necessary for sustainable development. He also called for a rapid OPEC+ response to new emerging factors to stabilize world markets.
The discussions and decisions taken at the St Petersburg International Economic Forum demonstrate the complex challenges facing the global oil market. Increased production capacity and geopolitical uncertainties will continue to play a crucial role in determining future prices and policies.

Washington ties the removal of additional duties to a verifiable decline in India’s imports of Russian crude, while New Delhi cites already-committed orders and supply stability for the domestic market.
The decline in imports and the rise in refining in September reduced China’s crude surplus to its lowest in eight months, opening the way for tactical buying as Brent slips below 61 dollars.
Chinese executive Zhou Xinhuai, 54, resigned from his post as chief executive of CNOOC Limited after holding the role since April 2022. A strategic reorganization is underway.
Texas-based SM Energy gains full support from its banking syndicate, maintaining a $3bn borrowing base and easing short-term debt maturity terms.
Halliburton and Aker BP have completed the first umbilical-less tubing hanger installation on the Norwegian continental shelf, paving the way for digitised offshore operations with reduced infrastructure.
The US group has finalised operations at the Begonia field, marking its first offshore deepwater intervention in Angola’s Block 17/06, located 150 kilometres off the coast.
Prolonged attacks on fuel convoys have depleted stocks, destabilised power generation and disrupted economic activity in Bamako and surrounding regions.
Nigerian group Dangote has reduced crude supply to its refinery, citing a strategic adjustment to high oil prices and denying any technical failure.
Reliance Industries reported a 9.67% increase in net profit in the second quarter of fiscal year 2025–2026, driven by recovering petrochemical margins and continued growth in its retail and telecom operations.
An operational fire was contained at the largest refinery in the US Midwest, causing a temporary shutdown of several processing units, according to industry data.
The European Commission imposes new rules requiring proof of refined crude origin and excludes the use of mass-balancing to circumvent the Russian oil ban.
The Dutch Supreme Court has rejected Russia's final appeal, confirming a record $50bn compensation to former Yukos shareholders, ending two decades of legal battle.
A ruling by Namibia's High Court upheld the media regulator’s decision that the state broadcaster NBC failed to ensure balance in its coverage of ReconAfrica’s oil operations.
The Canadian oilfield services provider announced a $75mn private placement of 6.875% senior unsecured notes to refinance bank debt and support operations.
Commercial crude reserves in the United States posted an unexpected increase, reaching their highest level in over a month due to a marked slowdown in refinery activity.
Beijing calls Donald Trump's request to stop importing Russian crude interference, denouncing economic coercion and defending what it calls legitimate trade with Moscow.
India faces mounting pressure from the United States over its purchases of Russian oil, as Donald Trump claims Prime Minister Narendra Modi pledged to halt them.
Three Crown Petroleum has started production from its Irvine 1NH well and plans two new wells in Wyoming, marking a notable acceleration of its deployment programme in the Powder River Basin through 2026.
The International Monetary Fund expects oil prices to weaken due to sluggish global demand growth and the impact of US trade policies.
With lawsuits multiplying against oil majors, Republican lawmakers are seeking to establish federal immunity to block legal actions tied to environmental damage.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.