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Sep 17, 2021
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Is Russia destined to remain a raw material appendage of the West, or can we turn the tide?

As reported at the Tyumen Oil and Gas Forum (TNF 2021), which is held at the West Siberian Innovation Center in Tyumen from September 14-16, “oil production and transportation is becoming more and more expensive. Rosnedra said that the profitable oil reserves in Russia, which are at the moment, will be enough for 20-21 years. ” This was announced to TASS by the interim head of the department Evgeny Petrov “on the sidelines” of the Tyumen Oil and Gas Forum.

At the same time, he added that this period will become more and more as technologies for hard-to-recover oil reserves develop. Also, the acting head of Rosnedr emphasized that Western Siberia remains the most promising Russian region for the exploration of oil and gas reserves.

“There is still work and work. There are opportunities for work here for many years to come, ”he said.

In addition, Petrov explained that the development of hydrocarbon fields in Eastern Siberia is currently unprofitable due to the lack of the required infrastructure.

Thus, the production and sale of crude oil is becoming less profitable and less competitive in front of a similar offer to the market of the Saudis, Emirates, Kuwait. It is reported by Rambler.

What conclusions should be drawn from this situation for politicians, the Russian government:

1. The raw material orientation of Russia is becoming more and more detrimental to the prospects of its development, perhaps for some time to come it is acceptable as a source for reindustrializing the economy, obtaining funds for technical re-equipment. The resource lobby damages the real economy by redistributing investments in favor of the extractive industries.

2. The attitudes of some politicians that “we need to develop the extractive industries, and we will buy the rest” is a disregard for national interests, leading to an increase in technological, financial and political dependence on the West and the East.

3. The destruction of the industrial complex of Russia, which began in the 90s, has led to the fact that the production of machine tools, ball bearings, production equipment, construction equipment has fallen by 8-10 and even 15 times, which is fraught with an irreversible lag.

4. The competition with the eastern oil-producing countries, where the cost of oil is several times lower, demonstrates the strategic inconsistency of managing the national economic complex.

The main trump card of Russia, which had the world’s best education and advanced science, should be the development of high technologies, the production of goods with high added value, and not a competition with Asia in the destruction of irreplaceable natural resources.

5. To this should be added the predatory destruction of forests that are not replenished by plantings. And in this regard, to raise the question: how will our grandchildren and great-grandchildren be warmed up in the harsh Russian climate, when their ancestors sell off, burn all energy reserves?

6. One should also take into account the inability of the Russian authorities to organize recycling and effective reuse of household and technological waste, which, in terms of their volume and significance, are capable of competing with the extractive industries and saving trillions of people’s rubles. An example here is given by Germany, Japan, which recycle up to 95% of household and technological waste. Free natural resources have given rise to a parasitic attitude towards them, with which it is time to end.

What decisions should be taken by the Russian authorities in order to regain the status of a great developed civilized country of high culture, which does not agree with the role of a raw material appendage of the West and the East:

First, it is a priority to gasify your own country, the lack of gasification hinders the economic and social development of the territories. At the same time, an increase in domestic consumption will reduce Russia’s critical dependence on Western energy consumers.

Secondly, the share of unprocessed raw materials in exports should fall exponentially, Russia should not remain a banana republic with missiles, but become a highly industrial, self-sufficient country.

All this will require an outstripping growth of investments in the sphere of technical re-equipment of industry, which will require the most severe savings and control over the redistribution of funds received from the export of energy resources. The efficiency of extraction and sale of raw materials is still a big question.

Sales of unprocessed raw materials, especially oil, should fall, and those of processed with high added value should grow ahead of schedule. At the same time, the total volume of energy resources from year to year should decrease in a planned manner, being ahead of time being replaced by the export of high-quality industrial products.

If your mind is not enough, it is enough to analyze the domestic experience of industrialization, the 30-year period of China’s industrial growth – everything will immediately fall into place.

In general, the current policy and practice of energy dependence of the budget makes Russia not only technologically vulnerable, but also deprived of a strategic perspective by more than half, and deprives our children and grandchildren of a bright future.

The 30th anniversary of the rule of the liberal-oriented bourgeoisie, which is on the financial, ideological, and now technological leash of the West, shows that without a left turn in politics, without relying on national patriots, Russian traditions are a new strategic course of economic development – apparently impossible. And the sooner the authorities understand this, the better it will be for everyone.

Vasily Titov



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