July turned out to be the worst month since the beginning of the year for production companies. Last month gas production in Ukraine fell by almost 5% down to 1 629 MMCM. This is 80 MMCM less than in July last year. The decline in oil and condensate production is even more palpable. In July only 210 thousand tons was produced that is 9% less than last year (20 thousand tons).
Stagnation and crisis in oil and gas industry are becoming increasingly obvious phenomena. A year ago, in August, upon the initiative of Cabinet of Ministers royalty for gas production doubled. That decision was a turning point for entire industry: almost all major projects were stopped, investments dried up and production volumes began to fall. A detailed analysis of the situation clearly shows that downturn in production industry is not a temporary phenomenon but a large-scale crisis affecting all companies.
OIL AND GAS OVERVIEW FOR JULY 2015