The Russian Energy Base.

Russia, the largest country on earth crossing 11 time zones and having a population of a bit over 142m, has vast reserves of oil, gas, coal and other minerals. It has enough to meet domestic needs and, with proper management, to remain the biggest energy exporter in the world. Its primary energy consumption has declined from a peak of 868m t/y of oil equivalent in 1989 to a 726m t/yoe level forecast for 2012.

Russia's 2010 energy consumption broadcast breaks down as follows: 138m t/y of crude oil equivalent, up from 126.5m t/y in 2005; 375m t/y of natural gas, from 355m in 2005; 150m t/y of coal, from 125m in 2005; 35m t/ye of nuclear energy, from 35m in 2005; and 28m t/y of hydro-power, from 40.2m t/y in 2005.

On Aug. 2, 2012, PM Dmitry Medvedev said Russia must prepare for a possible energy revolution which could significantly reduce global demand for oil and gas. He told a cabinet meeting: "We should remember that an energy revolution occurs in the world every 50-70 years and it is not yet known where we'll find ourselves with our hydrocarbons when this period lapses, and whether we will be of interest to anyone. We need to work".

The Russian government expects to reap about 8 trillion roubles ($250bn) from its continental shelf development programme to 2030. Medvedev said: "In total, the economic effect will reach an estimated 8 trillion roubles. The socio-economic, i.e. indirect effect, will amount to over 1.1 trillion roubles". The programme will help Russia raise crude oil production from the continental shelf by 2030 to 66.2m tons and natural gas production to 230 BCM, compared to 13m tons of oil and 57 BCM in 2011, Medvedev said. Russia ranks second in terms of total natural gas production next to the US (see omt7RusGloblProspAug13-12).