Russia remained the largest global oil producer in 2013, increasing production 1.4 percent from 2012 to reach a post-Soviet Union high of 10.51 million barrels per day, Reuters reported. December oil production in Russia also hit a post-Soviet high with an average of 10.63 million bpd. Russia continues to prioritize oil output and it shows in its budget revenues with oil and gas representing more than half under President Vladimir Putin.
"Enough investment is being made to slow declines in West Siberia and increase production in East Siberia in order to make for small net production increases," analysts from the International Energy Agency (IEA) told Reuters.
The IEA predicts oil production in Russia will stay at around 10.5 million bpd until the end of the decade before gradually declining to an estimated 9.5 million bpd by 2035. Much of the demand for Russia's record-breaking oil output comes from China, which has an agreement with Russia that will allow for more deliveries of oil. With increased deliveries, China is poised to outpace Germany as the largest consumer of Russian oil in the first quarter of 2014.
More information on the market for Russian onshore oilfield services can be found on Penn Energy's research area.