Russia plans to increase the depth of oil refining from the current 84% to 89% by 2036. Thus, oil will become more efficient and refineries will be able to increase the share of light oil products — gasoline, diesel fuel and kerosene. Russian Deputy Prime Minister Alexander Novak wrote about this in a column for the Energy Policy magazine.
“The depth of oil refining, that is, the volume of oil refining products to the total volume of oil consumed in refining, should increase to 89% by 2036 from the current 84%,” Novak said.
He emphasized that Russia pays considerable attention to oil refining. The state program of refinery modernization has made it possible to significantly improve the quality and expand the range of products, as well as increase production efficiency, TASS noted.
“Today our economy and citizens are fully supplied with high-quality gasoline and diesel, lubricants, bitumen of domestic production. Our own hydrocarbon resources allow us to develop processing industries with high added value, where they are used as raw materials,” Novak added.
Special attention is paid to the development of petrochemistry, which is characterized by high profitability. In this industry, price growth in commodity chains from raw materials to intermediate and final products ranges from 3 to 12 times, the deputy prime minister specified.
“According to estimates, in the coming years, the global petrochemical industry will see a significant increase in demand — 0.9% annually, which creates an additional economic stimulus for the industry. In this regard, monetization of associated gas due to high demand for raw materials for petrochemicals also has good prospects for Russia,” Novak concluded.
Demand for gas in the world may grow by 39% to 5.7 trillion cubic meters by 2050, Russian Deputy Prime Minister Alexander Novak wrote in his column for the Energy Policy magazine.
“By switching to gas for power generation as the most economically feasible option for decarbonization and development of gas chemistry, demand for this resource may grow to 5.7 trillion cubic meters by 2050 (+39% to the level of 2023),” he said.
Today, according to Novak, gas accounts for about 26% of the energy balance in the world and 46% in Russia. At the same time, gas is the most promising hydrocarbon energy source due to its environmental friendliness, availability and economic efficiency.
Earlier, Deputy Prime Minister said that the demand for oil and gas will not reach its peak until 2050, continuing to grow. Demand for gas in the world may grow by 36% by 2050, the Forum of Gas Exporting Countries noted.
Growth in global oil demand by 2036 will be 9-10% due to increased motorization in developing countries, which will require investment in oil production, Russian Deputy Prime Minister Alexander Novak wrote.
“Global oil demand will increase by 9-10% by 2036 on the back of increasing motorization in developing countries. This trend requires a significant increase in investment in global production, which has been declining in recent years against the backdrop of the green agenda,” Novak said.
He stressed that the key potential for oil production growth lies with the OPEC+ agreement participants, so the deal will continue to play a crucial role in stabilizing the global market.
“The validity of the OPEC+ agreement allows to ensure a fair price for oil. At the same time, the deal has already brought more than 30 trillion rubles of additional revenues to the federal budget of Russia for the entire period of its validity,” the Deputy Prime Minister specified.
He added that the oil industry continues to play a backbone role for the Russian industry. Therefore, among the key tasks — effective development of the unique resource base, meeting domestic needs and increasing supplies to the world market — oil exports have remained the most important element of Russia’s foreign economic relations for decades.