Russia races ahead to become the world’s largest fuel exporter, leaves Saudi Arabia behind

London, Dated.11.06.2016-Russia was declared as the largest fuel exporter in the world for year 2015. This information was published by the leading fuel company BP. Russia exported around 75% of its oil produce and 33.7% of its CNG. A net increase of 1.2% in the fuel production of Russia compared to the year 2014 has been recorded in the report.

The BP report ‘Review of World Energy 2016’ estimates the Russian exports totalled over 220 million tonnes of crude oil last year. Russian share alone stood at 23% of the total world crude export market.

Russian production of oil and gas condensate increased to an average of 10.83 million barrels per day in December 2015. The average for the full year 2015 was 10.73 barrels per day. Largest share of its produce goes to Europe. Russia accounts for over 37% of the European fuel requirement.

Even though Russia led in exports last year, there are indications this may change in 2016. The three Gulf nations of Saudi Arabia, Iran and Iraq have rapidly increased their crude oil production. These countries export oil in huge quantities to Europe.

Sources claim that Iran exports around 400 thousand barrels and Saudi Arabia around 800 thousand barrels of oil to Europe each day. Russian share of oil exports to Europe has started to decline due to the aggressiveness of Saudi Arabia and Iran. The Saudis recently announced reduction of its crude export prices to Europe. This price reduction is aimed at Iran. But clearly this is bound to have a strong impact on Russian exports.

With its consistently increasing oil production, Russia has started to focus more on exports to Asia. Russia has bagged long term contracts with China, and there are indications it is in talks with India, Japan and other Asian countries.

Saudi Arabian economy has been solely dependent on its oil exports. The Saudis recently announced an ambitious policy which aims to drastically reduce its dependence on oil exports, and will try generating income through other means.