BOFIT Weekly Review 2015/09
Russia refining an increasing share of its oil production domestically
While crude oil production increased slightly in 2014 (0.5 %), the volume of crude oil exports decreased 6 % y-o-y. This means that a larger share of Russian oil production is refined domestically than earlier. Oil refinery production increased last year by 6 %. In recent years, Russian oil companies have invested significantly in increasing their refining capacity, and even more importantly the ability to produce higher-grade raffinates, which is clearly reflected in the production figures.
Because demand for domestic petroleum products is likely to rise only slightly in the best case, an increasing share of petroleum products will go to export. In 2013 and 2014, exports of petroleum products grew about 10 % a year. Currently, over half of exported oil products consist of heavy fuel oil, which requires little refining, but Russia’s most modern refineries are changing the situation.
In particular, exports of diesel fuels to EU countries increased sharply last year.