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Russia plans to invest half a billion dollars to support the oil and gas industry

UNITED STATES (OBSERVATORY NEWS) — While the oil and gas industry isn’t as popular as it once was, it is still a massive industry with lots of potential. In these times of extreme volatility, businesses in the industry are having to adapt their operations to allow for continuous growth. Some are choosing to apply the lean six sigma model to their business (view source here), others are looking to become more attractive to the Gen Z workforce, and a few are seeking help from the government.

Russian Minister of Industry and Trade Denis Manturov said on Friday that his country plans to invest more than 30 billion rubles (490 million dollars) to support the oil and gas industry until 2024.

“According to preliminary estimates, the volume of government support for the development of oil and gas equipment until 2024 will reach more than 30 billion rubles,” Mantorov said in comments reported by the Russian TASS agency.

According to the Russian minister, by the end of 2020, the share of imported equipment in the oil and gas industry will drop to 43 percent.

He noted that in 2014, the level of import dependence in the oil and gas industry as a whole was 60 percent.

Mantorov said that the share of imported equipment to increase oil extraction has now decreased to 45 percent, oil refining equipment to 43 percent, and exploration equipment to 30 percent.

Russia is one of the largest oil and gas producing countries in the world, and still depends on energy exports, despite efforts to diversify its economy.

In 2018, Russia’s oil exports increased by 2.9 percent year on year, to 260.2 million tons (1.899 billion barrels), according to official data.

At the end of the same year, its gas exports increased by 4.9 percent year on year to 220.6 billion cubic meters.

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