Record cold temperatures in the Permian Basin over the past 30 years caused a reduction in oil production by 1 million barrels per day. There were also problems with logistics, since due to the peculiarities of the infrastructure, producers cannot export the produced oil and are forced to stop the wells.
How can Russian oil companies benefit from this, and which one will be in the most advantageous position? Nikolay Dudchenko, an independent financial analyst, answered a question from Fortrader magazine.
– At present, indeed, due to the abnormally low temperature, oil production in the Permian Basin has dropped by about 1 million barrels per day. Meanwhile, according to experts, the situation may soon change due to an increase in air temperature. Thus, the impact on oil production should be short-term and it is quite possible that it will not in any way affect the growth of imports.
As for the Permian Basin, it must be remembered that a significant amount of oil and oil products are transported to the northeastern and northwestern regions of the United States. Consequently, it is necessary to make an assessment as to which of the Russian oil companies can benefit from the current situation, depending on where the main exports of these companies are directed. Of the Russian oil exporters, I would first of all pay attention to PJSC Rosneft, PJSC Novatek and PJSC Gazprom Neft. At the same time, one of the key oil suppliers is PJSC Rosneft.