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Russia’s worst times: oil prices fall forever

By the end of 2014 the United States became the world leader in the production of oil, leaving Russia far behind. And Moscow will never catch up with Washington, experts say.

Russia"s worst times: oil prices fall forever

According to IEA, the energy agency of the Organization for Economic Cooperation and Development, "the rise of the United States as a heavyweight crude producer, OPEC"s abdication of its historical role as the arbiter of world oil supply, and sluggish oil demand growth worldwide will have big implications for oil producing and consuming countries alike."

In his article "Game Change: U.S. Oil Revolution Has Torn Up the Rule Book" Keith Johnson, a journalism for Foreign Policy, writes about leading position of the U.S. in oil production, referring to the experts from the International Energy Agency. This means that at least until 2020 Russia will not be able to dictate the price for oil – this is the forecast of the MAE.

Thus, last year the United States had increased its oil production by 1.5 million barrels per day to 11.81 million, compared with the Russians who had increased their oil production only by 50,000 barrels per day to 10.93 million.

Saudi Arabia, a longtime partner of the United States in the energy market, remains the third leader in the production of oil. At the same time, it should be noted that estimating oil production the analysts do not include gas condensate, which is up to 15% of the total weight. And Saudi Arabia is a leader in the production of liquid hydrocarbons, having bypassed Russia.

Thus, President Vladimir Putin loses an important argument in the political ring, and can hardly hope that in the near future the economic situation in Russia will improve itself – it all depends on Washington.