Russia will not compete with Saudi Arabia for US oil market

Oct 16, 2002 02:00 AM

US sees Russia as an alternative to unstable Middle East but Russia is not going to compete with Saudi Arabia in US oil market. According to Russian Energy Minister Russia's shipments are aimed exclusively at replenishing the possible deficit of crude on the American market.
Washington is eager to find suppliers outside the volatile Middle East and sees Russia as a potential major new crude oil supplier.

Russian companies began testing the US market last summer, when the country's second largest producer Yukos sent several shipments. But Russian companies currently lack the transport facilities and infrastructure for large scale supplies of crude to the US market.
In the first seven months of this year Russian crude exports to the US were 61,000 bpd. Washington imports nearly 9 mm bpd of crude and Saudi Arabia is its biggest supplier, accounting for around 1.5 mm bpd.

Source: Neftegaz.RU