View of 12 million b/d Russian output by 2010 places focus on export limits

Russian production has been growing rapidly in recent years, and many observers consider that it could exceed 10 million b/d by 2010.On an unconstrained basis, assuming that all required investment was put in place, Wood Mackenzie believes that production could reach 12 million b/d in 2010.Significant growth in production, combined with limited growth in domestic demand, has led to a major drive to export crude. This in turn has exposed capacity constraints in the export pipeline system, which needs to be expanded significantly to cope.Major projects to build new pipelines to China, the Pacific Coast, and Murmansk, and expansions of the existing Baltic Pipeline System (BPS) all have power...

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