Tass said in 2019 the cost of average oil production in Russia was around $40US/barrel. This probably included exploration and growth costs. These costs have largely left since Russian oil companies have no surplus money to invest in the future. Money is being sucked directly out of the major compnies. Transport and insurance cost by boat up around $10US dollars a barrel.
There wont be many O&G companies making money in Russia. Most would be close to break even. The royalty revenue, and exchanging crappy Rubles for Dollars in money laundering, also keep production up so wells don't freeze, and keep customers, are some of the main reasons for producing. It is really a total loss situation now for the Russian O&G industry. Putin cut output, mainly to trim off the expensive producers in Russia.
the only way out is form Putin to encourage war in the middle east via Iran. There you go, a conspiracy theory, I have no proof. Trump would be able to sell that to 30% of population.
I think the commentary is about right... we really don't know the discount either.
It will be less than 13% of GDP by second half 2023.
