The European oil market may halve by 2040. Therefore, the export of Russian oil and gas to the EU will also decrease, says Leonid Fedun, LUKOIL vice president for strategic development.
The European oil market will shrink and may halve by 2040, according to the EU's forecast, Fedun told Kommersant.
He added that a reduction in oil exports from Russia to Europe is inevitable. Moreover, a decrease in gas exports is expected, but it will not be as strong as long as gas prices are low.
They get rid of the coal in the first place. The EU countries plan to introduce a standard on the content of hydrogen in methane up to 5% so that conventional gas consumption can be reduced by 2040, Fedun added.
He also announced the plans to modernize the Lukoil plants in Europe to meet the requirements of the Green Deal project launched by the European Commission in December 2019 to maintain the environment.
Fedun said that the company is refusing to build large-scale oil and gas chemical complexes, as there are already technologies that help make secondary plastic recycling almost endless. According to him, the demand for 3-5 million barrels per day will leave the market in the future.
Fedun also noted that even according to IEA's SDS scenario, LUKOIL would maintain production at the current level by 2035 since all brownfield projects and a significant part of greenfield remain profitable even at $40 per barrel. This price level is the cut-off point for all new tasks. The company believes that the more reasonable oil price is $50 per barrel. According to LUKOIL's vice president, the demand will be provided by developing countries and those industries that cannot afford environmental innovations.
NEWS.ru reported earlier that China might become the world leader in oil refining in 2021, pushing the US, which dominated the market since the mid-19th century, to the second place.