Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes

April 3, 2024/in /by Rudolf Huber

When the Soviet Union broke apart, Russia’s biggest oil field Samatlor went into a production frenzy as money was needed and the field was pumped beyond any reasonable rate. This damaged the field badly making production rates drop massively. Since then and by using a lot of Western tech part of the field has been restored. But the heydays are over and will remain over – especially now. Many refineries in Russia today are quite old. Building them anew would often make no sense anymore especially as many of them a geared toward fuel production for domestic needs. If they are badly damaged I don’t expect many of them to ever return once the war is over. We may see the end of Russia as one of the big oil exporters.

'So that will probably take down exports by a couple of hundred thousand barrels'.

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