Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 31 October 2021
Rosneft Is Developing New Strategy
Russian state oil major Rosneft is developing a new strategy centered on the transition to renewable energy resources, CEO Igor Sechin said at the 14th Eurasian Economic Forum. Sechin also said that Rosneft had invested more than $580 million in green energy in 2020 and that it had reduced the volume of pollutants it released into the atmosphere by 14 percent.
The company is analyzing the possibility of using renewable energy sources, carbon capture, and hydrogen solutions to reduce the carbon footprint of its operations. “Rosneft is already involved in producing more natural gas, which is the cleanest fossil fuel, and is seeking to increase its share to more than 25 percent,” Sechin was quoted as saying. He also said the company was implementing a program for utilization of associated petroleum gas, developing environmentally friendly motor fuels, and a network for charging electric cars at filling stations. The company has devised a carbon strategy scheme by 2035. Under this plan, the company is committed to reducing its upstream emissions intensity by 30 percent, preventing 20 million tons of greenhouse gas emissions, reducing methane emissions intensity, and ensuring zero routine flaring of associated gas. The erroneous decisions in the area of climate policy can lead to serious negative consequences, Sechin added. The CEO of Rosneft said the demands of climate activists had reduced a large number of energy investment projects. While the world’s leading oil and gas companies invested an average of $16 billion per year in exploration between 2011 and 2015, spending on hydrocarbon reserves replacement dropped threefold last year, to $5 billion. As a result, the level of global oil and gas reserves replacement has been declining for the fourth year in a row, and risks of supply shortages are already factored into the prices, negatively affecting the revenues of European and global consumers, Sechin concluded in his remarks.
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