(PresidentialWire.com)- As energy costs continue to soar, Russia claims to have discovered a sizable oil reservoir in the Arctic. This finding may help Moscow’s global position.
Energy behemoth Rosneft calculated that the oil reserve beneath the Pechora Sea holds 82 million tons of oil. The Medynsko-Varandeysky region was where it was discovered, according to the international financial news website MENAFN.com.
According to a press release from Rosneft, the oil was “light, low-sulfur, and low viscosity,” and “a free flow of oil was achieved throughout the tests with a maximum flow rate of 220 cubic meters a day.”
According to Rosneft, the Pechora Sea exploration proved the significant oil potential of the Timan-Pechora province on the shelf. It served as the foundation for further research and development of the region.
Twenty-eight offshore licenses in the Arctic are purportedly held by Rosneft, eight of which are in the Pechora Sea, a body of water above northwest Russia. The Pechora Sea, a part of the broader Barents Sea in the southeast, is a location with active oil exploration. Despite being obstructed by floating ice for more than half the year, drilling is made simpler by its average depth of only 20 feet.
Russia is the third-largest oil producer in the world, after the United States and Saudi Arabia. Even though Russia provides fuel and heating oil to most of Western Europe, world leaders are developing a sophisticated strategy to limit the price Russia may set for its oil to penalize Moscow for its conflict with Ukraine.
According to experts at JP Morgan Chase, the action might lead Russia to reduce output, which would increase the price of a barrel of oil globally from its current level of roughly $111 to as much as $380.
According to expert Natasha Kaneva, it is likely that the government may react by lowering output as a tactic to inflict pain on the West. Russia benefits from the tightness of the global oil market.
Last Monday, President Joe Biden agreed that oil prices are rising quickly. He gave little cause for hope when asked how long Americans could expect to pay high costs.
On Thursday, Biden told reporters in Europe, “As long as it takes.”
As long as it takes so, Russia cannot beat Ukraine and march beyond Ukraine.
Biden said that the globe is in a very, very serious position right now. He asked, rhetorically, why do we have NATO? He said that he assured Putin that if we took action, we would reinforce NATO. We would work to make NATO stronger overall.