January 21, 2012: The Russian Energy Ministry expects crude oil production to edge up by 1 percent this year to a new record as a decline in output at traditional fields will be offset by a rise in new deposits, a deputy minister said today.

Last year, oil output in Russia, the world’s top crude producer, edged up 1.2 percent to reach a new post-Soviet high of 10.27 million barrels per day (bpd), or 511 million tonnes.

“Taking into consideration companies plans, this would be around 1 percent. We will add some 5 million tonnes,” said Sergey Kudryashov. The growth would slow further from 2.2 percent in 2010.

 

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U.S. Energy Secretary Steven Chu, a champion of renewable energy and biofuels, has a clear position about the future of oil.

He says global demand for it will increase over the next two decades and even with more efficiency and alternative fuels, prices will increase again.

In the long run, over the next two decades, he said, he’s certain the price of crude will be significantly higher than today. Crude oil has dropped from a high last summer of $145 a barrel to a recent low of about $34.