Ending Russia’s Ability to Weaponize Energy
Calgary, Alberta (March 10, 2022) — Enverus Intelligence Research, part of Enverus, the world’s leading energy data analytics and SaaS technology company, has released a new report measuring Russia’s economic isolation, which is expected to intensify in the coming days and weeks with some Western powers backing energy sanctions that would limit Russian exports of oil, natural gas and many other key commodities. On March 8, the United States announced that it would ban imports of oil and liquefied natural gas (LNG) from Russia.
In his report, Ukrainian War | energy weaponry, Enverus Intelligence Research analysts discuss the short and long-term impacts of this crisis and identify key themes that those investing in the energy space and in Organization for Economic Co-operation and Development (OECD) countries should know.
“If Russian oil is formally sanctioned, our central scenario foresees a drop in crude exports to OECD countries of around 3 Mb/d and a drop in products of 1.5 Mb/d. If China and others are about 1.5 Mb/d of that amount, this would leave a net export/supply loss of about 3 Mb/d, which we believe would push Brent above 160 $ before a severe demand response occurs later this year,” said Bill Farren-Price, lead author of the report and director of Enverus Intelligence Research.
Al Salazar, co-author of the report and senior vice president of Enverus Intelligence Research, added: “Inflation will rise further as Russian energy, base and rare metals and agricultural commodities disappear from the markets. global. Oil, natural gas, food and metal prices are at historic highs. Despite pockets of pent-up demand strength due to the global easing of COVID-19 related restrictions, high commodity prices will soon begin to erode demand strength.
Main findings of the report:
- In the short term, it would be up to OPEC, strategic stockpile releases and a potential return of Iranian crude to fill the global supply gap. Beyond a year, short-cycle US crude would start to have an impact, as would a more structural demand suppression due to higher prices and weaker GDP growth.
- In the long term, energy security will become a political priority, which in turn will boost domestic oil and gas production in North America, while an even greater emphasis will be placed on energy transition and technologies and investments. renewable.
Members of the media should contact Jon Haubert to schedule an interview with one of Enverus Intelligence Research’s expert analysts.
Enverus is the leading energy SaaS company providing highly technical insights and predictive/prescriptive analytics that empower customers to make decisions that increase profits. Enverus’ innovative technologies drive production and investment strategies, enable best practices for energy and commodity trading and risk management, and reduce costs through automated processes in business functions reviews. Enverus is a strategic partner for over 6,000 customers in 50 countries. Learn more at Enverus.com.
About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy sector research that focuses on the oil and natural gas industries and broader energy topics, including oil, gas companies , intermediaries and other publicly listed and private energy sector companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity price forecasts, global macroeconomics and geopolitical issues. Enverus Intelligence Research, Inc. is registered with the United States Securities and Exchange Commission as an investment adviser.
Creating the future of energy together.