Upstream investment in Russia's oil and gas industry has fallen sharply

Recently, Resta Energy reported that due to Western sanctions and the large-scale withdrawal of multinational companies, Russia's upstream investment in the oil and gas industry is expected to be significantly reduced by $15 billion
in 2022.
The company said that before the Russia-Ukraine conflict at the end of February 2022, upstream investment in the Russian oil and gas industry in 2022 should have approached $50 billion, but is now expected to be $35 billion
.

In 2021, investment in Russia's oil and gas upstream sector totaled $45 billion, a slight rebound
from a low of $40 billion in 2020 due to the pandemic, Resta said.
However, with Russia's separation from the global energy market, investment has decreased significantly, and investment in the Russian oil and gas sector is expected to remain subdued
until 2025.

Among all types of investment, investment in new projects in Russia is expected to fall by 40% from 2021, from $13.
7 billion to $8 billion
.
Russia is not expected to approve any major new projects in 2023 until the Chayandinskoye condensate field operated by Gazprom is restored
.
As oil production has not been significantly affected, brownfield investment is expected to decline by 14%.

In 2023, Russian brownfield investment will decline by about 20% compared to 2021, and the impact of lower oil demand will be felt
.

Resta said its latest assessment of Russian crude oil production in 2022 was 9.
6 million b/d, up 200,000 b/d
from its June 2022 forecast.