As of January 2010, Russia was predicted to have over 60 billion barrels in oil reserves around the country. The majority of this is predicted to be in the region of Siberia. This is just as estimate though because most of the area hasn’t been explored much. This could be a very helpful find for a world which is still depending greatly on the use of oil and natural gas to operate. In addition to there oil reserves which they have the eighth highest in the world, Russia ranks the highest in amount of natural gas reserves and second in the amount of coal reserves.
Russia has increased there production of oil over the past decade. In fact, Russia had the highest production of crude oil in the world in 2009, surpassing Saudi Arabia. Most of the oil produced was from the Western Siberia region. The oil Russia produces is then refined in one of its 40 oil refineries around the country. After being refined, most of it is exported to Europe where Germany, the Netherlands, and Poland are the top three importers of Russian oil. Only about 6% of the oil produced in Russia makes it over to North and South America.
Russia has the worlds largest natural gas reserves with about 1680 trillion cubic feet (1,680 Tcf ). The reserves in Russia totals about one fourth of the worlds total reserves. Most of Russia’s natural gas is located in Siberia just like its crude oil reserves. In 2009, Russia was the second largest natural gas producer. The United States was at the top of the list in this category. The leading importers of Russian natural gas are Commonwealth of Independent States countries (CIS countries), Western Europe, and Eastern Europe. There has been some issues with importing this into Europe because Russia is selling it to them at too high of a price. This issue has led to a significant decrease in the amount of natural gas Europe imports from Russia.
There is a lot of potential for Russia to gain some wealth from selling their energy resources to other countries. However, like in the issue with natural gas and Russia importing it to Europe, Russia is going to have to sell it at the right price in order to get buyers and to avoid conflict. High prices in the oil come from a company that almost has a monopoly on the pipelines in Russia. Transneft is a state-runed company that controls 90% the oil pipelines in Russia. The United States is seeing very little of the energy resources from Russia as of now, but who knows what the future holds. Hopefully we there aren’t any conflicts started in Russia due to the large amount of energy resources it has which are crucial to the operation not only of our country, but of the world.