Deputy Minister of Energy Pavel Sorokin gave a long interview on the state and prospects of the oil and gas complex

07.09.2020       

It is from the pandemic that the oil market suffered more, since 70% of its volume is transport, and the coronavirus, first of all, reduced the mobility of the population. The gas market is mainly tied to the generation of electricity. There was a decrease in demand for electricity in many countries, but it turned out to be not so significant. While sitting at home, people consumed more than usual, and this partly offset the decline in industrial demand. But the gas market was influenced by other factors besides the pandemic. The fall in prices here turned out to be more significant, prolonged and began even before the appearance of the coronavirus. In recent years, the supply of gas has increased dramatically. Last year, LNG production alone increased by almost 40 million tonnes, adding more than 12% to the global LNG trade. And this is the volume that is potentially on the market, even if they do not want to buy it now. Until a certain point, it will neutralize the gradual increase in demand for gas and will keep prices low. In our forecasts, we showed a significant overproduction in the gas market, which could easily last for several more years. This will largely depend on the rate of gas demand growth worldwide and on how quickly additional LNG volumes, for example, from the US, can be absorbed. Moreover, for the gas market, these factors will retain their influence after the pandemic. further Rossiyskaya Gazeta<