Russia Can Wait for $70 Oil Before Re-Entering Arctic Waters
- Arctic shelf reserves are nation’s ‘backup stock,’ Novak says
- Russia has retreated from Arctic offshore zone since oil slump
1490750276_russia arctic oil lede
This article is for subscribers only.
Russia can wait for a sustained recovery in oil prices before drilling again in Arctic waters, relying for now on less costly regions even as rival producer Norway accelerates development of its northerly fields.
“We estimate production costs for the Russian Arctic offshore in the range of $70 to $100 a barrel,” Energy Minister Alexander Novak said by email. These reserves “are our backup stock,” he said before the International Arctic Forum in Russia’s Arkhangelsk that began Wednesday.