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If World Oil Supplies Are Disrupted, Does Russia Have Any Surge Capacity for Additional Production?

By Matthew Sagers and Thane Gustafson

Published: 2/27/2012

Russia, the world’s largest oil producer and exporter, has no surge capacity available immediately. Even a stepped-up effort over a year to add volumes, mainly through measures in older fields, is unlikely given current costs and incentives. A sizable reduction in overall taxes, especially the export tax, would be required, and high oil prices give the government little incentive for reforms.

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