Extracts from speech of Rosneft’s CEO Sechin at a Russian forum

MOSCOW (Reuters) – Following are extracts for the speech by Igor Sechin, the head of Russian oil giant Rosneft at St. Petersburg International Economic Forum


“The creation of reserves as we observe by both Western and Middle Eastern companies may be an expectation of serious market changes.

“The presence of such ‘phantom barrels’, which can have a large-scale impact on the market, offsets the impact of the voluntary reduction in production quotas undertaken by the main OPEC participants.

“This is also shown by the market prices, which went down after the recent decision of the ministers of the (OPEC+) participating countries.”


“The green transition is not supported by cost-effective sources, and its implementation is an illusion, which leads to disinvestment from traditional energy.”

“Proponents of the theory of the anthropogenic factor present us with the energy transition as an illusion of saving the world.

Now that we have already accumulated some experience in implementing the energy transition, it is clear that neither its goal nor, accordingly, preparations for it have been worked out in accordance with the tasks and needs of humanity, such as infrastructure, financing, provision of raw materials, availability of appropriate technologies.”

“Thanks to years of aggressive PR campaigns and lobbying efforts, renewable energy has displaced large amounts of reliable power generation from the North American energy market. As a result, large swaths of the U.S. and Canada are now at risk of power shortages.”

“Individual EU countries, such as Germany, France, Belgium, Sweden and others, are already ready to reconsider their approach to achieving the goals of the so-called Green Pact for Europe.

“And the World Bank, in its recent report, moved the deadline for achieving green transition goals 10 years forward, to 2060. We are confident that emissions targets will be revised several times.”


“It is not surprising that global oil demand continues to rise, despite expectations of so-called ‘peak oil’. I think that the OPEC forecast paints a very realistic picture of the future of global energy.”

Sechin said that according to that forecast, primary oil demand will rise by almost 20% to 116 million barrels per day by 2045.


“Theoretically, for the Russian oil industry, a price reduction could mean the possibility of lifting all restrictions on the price cap, and the revenue side of the approved federal budget is based on $60 per barrel.

“In these conditions, the possibility of a prompt response from OPEC+ to the emergence of new factors will be of fundamental importance for stabilizing world markets.”


“It is obvious that the high returns of deposits with a rate of 18-19% disincentivizes investment processes in the real economy, necessary for sustainable development.”

(Reporting by Vladimir Soldatkin and Olesya Astakhova; Editing by Tomasz Janowski)


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