The US-Russia petroleum industries competition from a historical perspective

The USA seeks to oust Russia from the world energy markets

Access to oil fields is a topical issue of world politics and economy, RISS experts Igor Prokofiev and Nikolay Lukyanovich point out in the analytical article of RISS journal "National Strategy Issues". "The current situation provokes various geopolitical and geoeconomic conflicts at both regional and global levels, especially given the fact that oil reserves, production, and consumption differ significantly by region and country," they say.

Russia is the sixth biggest oil producer in the world, while the United States is the ninth largest.  Geological exploration in the US is more developed than in Russia, so the estimated oil reserves in our country should be much larger than official data suggest. Oil production in the US is expected to grow at a robust pace over the next eight years. America will become the world leader in oil and natural gas production by 2025. "Washington's energy policy has now changed dramatically. In the last decades of the 20th century, the United States was dependent on oil imports. This was largely dictated by geopolitics. After the start of the implementation of the new Trump’s energy strategy, the annual net oil imports to the US decreased by 25-30% from the highest indicators of 2005-2007," RISS experts underscored.

In experts’ opinion, at the very beginning of the 20th century, the Russian Empire lost to the United States because of strategic mistakes of the country's leadership, which didn’t pay enough attention to the development of the domestic manufacturing industry. The situation was similar in the Soviet Union. The permanent increase in the volume of oil exports also did not provide any prospects for the development of high-tech industries except for the military-industrial complex. This led to the collapse of the Soviet Union afterwards. "Now modern Russia needs to take into account these historical events. The main efforts in the energy policy should be focused on stimulating domestic demand for energy and developing the manufacturing industry based on modern high-tech industries," RISS experts consider.

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