Translation. Region: Russian Federal
Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.
Deputy Prime Minister Alexander Novak spoke at the panel session “The World Fuel and Energy Market in Search of a Balance between the Interests of Producers and Consumers” at the St. Petersburg International Economic Forum. The session was also attended by OPEC Secretary General Haitham al-Ghaith, Minister of Energy and Natural Resources of Turkey Alparslan Bayraktar, Minister of International Economic Relations under the Government of the Republic of Serbia, Chairman of the Serbian People’s Party Nenad Popovic, Minister of Foreign Affairs and Foreign Economic Relations of Hungary Peter Szijjarto, and Deputy Prime Minister of the Republic of Uzbekistan Jamshid Khodjaev.
Alexander Novak outlined the vector of Russia’s current strategy in the current conditions of the global energy market and spoke about the key steps being taken to ensure the sustainable development of the country’s oil and gas sector.
“The oil and gas industry is key to the Russian economy. It is a driver for investment, the economy, new inventions, and the implementation of modern research and development work. Over the past 20 years, our oil and gas industry has made a huge leap. Firstly, oil production has increased from 300 to over 500 million tons per year (80%). We have new production regions – we have begun to extract raw materials in Eastern Siberia, on the shelf. We have developed and learned to apply TRIZ technologies. This is important, since the lion’s share of future reserves are reserves that are located at greater depths, with more difficult-to-extract layers,” said Alexander Novak.
The Deputy Prime Minister added that the issue of technological development is key today.
“Despite numerous sanctions from unfriendly countries and the desire to stop the development of the Russian economy, including through the fuel and energy complex, we see that our industry has not only maintained its production indicators, but has also survived and become an order of magnitude more efficient. It has become more competitive and technologically advanced. The sanctions have forced us to ensure import substitution, and our own developments have appeared instead of technologies that were previously purchased abroad. Our industry has been loaded, and an impetus has been given to the development of the Russian economy as a whole,” said Alexander Novak.
He recalled that the key tasks for the development of the fuel and energy complex set by President Vladimir Putin include ensuring domestic energy security, increasing the share of high-value-added products through the development of oil and gas refining and petrochemicals, international cooperation, and the development of infrastructure for the supply of energy resources to domestic and foreign markets.
OPEC Secretary General Haitham al-Ghaith noted that global demand for oil is growing.
“We see that the world’s population is growing, and by 2050, there will be 2 billion new people on the planet, and the global economy will double compared to current parameters. By 2030, half a billion people will live in new cities that will be the size of 100 St. Petersburgs. And this means heating, air conditioning, and overall growth in energy consumption. In addition, new consumers are mining and data centers. By 2050, we predict a 24 percent increase in energy consumption compared to the current level, which requires additional investment in the sector. They need to be stimulated,” said OPEC Secretary General Haitham al-Gais. OPEC does not see peak demand for oil even by 2050.
Turkey is already seeing both gas consumption and the share of renewable energy sources grow. And the country’s main goal is to ensure the security and availability of energy supplies. “We are diversifying our portfolio by investing in renewable energy sources. By 2035, we want to quadruple the capacity of solar and wind energy components. We have ambitious plans for nuclear energy – to increase its production to at least 20 GW by 2050. To do this, we need four reactors, and we are working with Rosatom. There is also a focus on small-scale generation and a desire to build another 5 GW station,” said Turkish Minister of Energy and Natural Resources Alparslan Bayraktar about plans for energy development in the country.
According to him, Turkey has also begun developing offshore fields, which already supply energy to 4 million households in the country. By 2028, this number is planned to increase fourfold. Turkey is searching for oil and gas in developing countries, and is also investing in its own infrastructure and preparing to create large-scale capacities for gas export to Europe.
“Hungary will continue energy cooperation with the Russian Federation, because it is very important for us to keep prices low for all our citizens, for our families. Without Russian energy resources, this is impossible for us,” said Hungarian Foreign Minister Peter Szijjarto, commenting on the European Commission’s plan to have EU countries abandon Russian energy resources by 2027. In his opinion, Brussels and Kyiv have set the goal of cutting off Europe from the supplier of cheap and affordable oil and gas, which Russia has been for Hungary for many years. At the same time, the European Commission does not offer any alternative in the form of other equally reliable and inexpensive sources of energy resources.
The participants in the discussion agreed that in the context of growing energy consumption in the world, it is necessary to diversify its sources and international cooperation for the development and reliable supply of both traditional and alternative types of energy resources. This is especially important in a period of geopolitical instability and the aggravation of local conflicts in a number of regions of the world.
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