Exxon Mobile, one of the biggest names in the petroleum industry, is now starting to work with a state energy company in Russia in a venture to look beneath the Arctic Ocean for new resources. They will be hunting for oil and natural gas, and everything with the project appears as though it will be good to go very soon. The rig, which Exxon will operate, recently set sail. It will be heading to the arctic in hopes of finding new places to drill for oil and gas. This is very important for the Russian energy industry.
The current amount of oil and gas Russia is pulling out of the ground in places such as Siberia is far less than it once was, so they are looking for good alternative options, and the Kara Sea may be where they will find it. Consider just how much Russia relies on petroleum for exports. In fact, they are pumping more oil than Saudi Arabia. Experts say that it accounts for about 60% of their overall revenue, and without it, financial problems would surely ensue in the country.
Russia does not have quite as much expertise and equipment as Western nations do when it comes to drilling offshore. Thus, they are relying on help from Exxon in order to find the biggest and best deposits and to start drilling. These partnerships are highly important to Russia, and they can certainly be profitable to companies such as Exxon.
Of course, this venture, and Russia’s involvement with drilling and selling, is not without some opposition. Europe and the United States, along with the United Nations, threaten to levy sanctions against the country for their dealings with and against Ukraine. This could limit the amount of oil they are able to export, which could affect their financial future. It will be interesting to see how things such as possible sanctions will affect the country and their drilling and oil export, in the coming years.
One of the reasons that Exxon and other companies are looking to work with Russia is the fact that there are so many regulations in North America regarding drilling. Loosening those regulations could bring those companies back though.
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