OREANDA-NEWSUS shale oil doesn't create direct competition for Russian oil, Vadim Yakovlev, first deputy general director of Gazprom Neft, said in an interview with the Russian media. "Shale producers are a significant player, and we are watching how this segment is developing. According to forecasts, shale oil production in the United States will grow by more than 1 million barrels per day. Of course, the more diversified the supply, the more energy sources better for everyone. Investment cycles for shale oil are rather short, they can flexibly respond to market needs, quickly increase or decrease supply, which further stabilizes the situation", Yakovlev said.

"At the same time, if we compare this source of raw materials with others, given the cost curve of production and supply of oil to the market, shale oil doesn't compete with Russia. After all, the cost of our raw materials is significantly lower", he added. Yakovlev noted that the alternative to the American shale are projects on the deepwater shelf or combustible Canadian shale. "Of course, oil from unconventional sources creates additional supply on the market, affects the supply-demand balance and price levels. But this source doesn't create direct competition for Russian raw materials", said a top manager.

Speaking of direct competition in the oil market, the expert noted that in all possible development scenarios with the current cost of domestic oil, there will always be a place in the market for Russia. "Now, on average, our company's operating expenses are at the level of 2.1 thousand rubles per ton, this is without taking into account capex. Compared with many other oil-producing regions of the world, this is a rather low figure", he added.