Russian Energy Official Says Global Oil Output Short of 6Mln BPD Due to Western Policy

ST. PETERSBURG, Russia (Sputnik) - A significant investment shortage into traditional energy sources caused by the Western sanctions and environmental, social, and governance (ESG) policy has caused a global production deficit of 5-6 million barrels per day, Russian First Deputy Energy Minister Pavel Sorokin said on Wednesday.

"The current situation on the energy market is not a result of the last few months but a consequence of the policy that was being created by the West during the last decade. The sanctions, which were imposed not only on Russia but on other countries, as well as the green agenda and the ESG policy of the last 10-15 years caused a significant shortage of investments into traditional energy sources. It has deprived the world of 5-6 barrels of oil per day, according to our estimates," Sorokin said at the 11th St. Petersburg International Gas Forum.

The official also said that traditional energy sources are short of at least 250-270 billion euros ($25.1- $27 billion) in investments per year, adding that the slowdown in demand for oil and gas in the developing countries in Latin America, Africa and in the Asia-Pacific region affect the global economy, increasing the risks of economic recession.

The 11th St. Petersburg International Gas Forum (SPIGF), which is taking place from September 13-16 in the Expoforum Convention and Exhibition Centre, is hosting more than 80 events with the participation of 700 speakers from 20 countries. It aims to outline prospects for the further development of the sector, according to the organizers.

Among the main events of the SPIGF 2022 convention program are the international scientific and practical conference "Underground Gas Storage: Reliability and Efficiency" and plenary session "Gas Engine Fuel: a Reliable Solution in the Face of New Social-Economical and Environmental Challenges."