MOSCOW (Pakistan Point News / Sputnik - 24th November, 2020) Russia and OPEC will remain key oil suppliers even under harsh climate regulations, with developing countries accounting for the major share of demand, Leonid Fedun, vice president for strategic development at Russia's Lukoil energy giant, said in an interview with the Kommersant newspaper.
"In the 'radical climate scenario', a significant share of deep-sea and tight oil projects will drop out, while the share of traditional suppliers, such as OPEC and Russia, can grow to up to 60 percent of the total production. Demand will be guaranteed by developing nations and sectors that cannot afford environmental innovations," Fedun said.
The Lukoil top official also expressed the belief that the market would always need coordination between Russia and OPEC.
"It certainly will. Almost 15 million barrels per day have been artistically withdrawn from the market, but they will come back if there is no cross-governmental coordination, and we will see again a shock similar to the [March] situation when Saudi Arabia started to undercut pricing due to the temporary collapse of OPEC+, and prices crashed to negative," Fedun explained.
