If oil can maintain a fairly low price of $60 per barrel, Russian energy companies can survive a drawn-out depression in the global industry, according to Wood Mackenzie, the energy and mining consultancy based in Edinburgh. The reason is that the costs of extracting oil and gas are based on a devalued ruble, which makes them low for producers such as the state-run Rosneft and Gazprom, respectively. But the two companies products are sold on the world market for dollars, not rubles, making their profit margins higher, according to a Wood Mackenzie analysis published July 17. The average global price …read more
Source: Business Insider
