News Release

Ending Russia’s Ability To Weaponize Energy

byEnverus

Calgary, Alberta (March 10, 2022) — Enverus Intelligence Research, a part of Enverus, the leading global energy data analytics and SaaS technology company, has released a new report measuring Russia’s economic isolation, which is expected to intensify in the coming days and weeks with some Western powers building support for energy sanctions that would limit Russian exports of oil, natural gas and numerous other key commodities. On March 8, the U.S. announced it would ban imports of Russian oil and liquified natural gas (LNG).

In its report, Ukraine War | The Weaponization of Energy, Enverus Intelligence Research analysts discuss the near- and longer-term impacts of this crisis and identifies key themes that those invested in the energy space and in the Organization for Economic Co-operation and Development (OECD) countries should know.

“If Russian oil is formally sanctioned, our central scenario sees crude exports to OECD countries fall by ~3 MMbbl/d and products decline by 1.5 MMbbl/d. If China and others make up ~1.5 MMbbl/d of that amount, this would leave a net export/supply loss of ~3 MMbbl/d, which we think would drive Brent above $160 before a violent demand response sets in later this year,” said Bill Farren-Price, lead report author and director of Enverus Intelligence Research.

Al Salazar, co-author of the report and senior vice president of Enverus Intelligence Research, added, “Inflation will bump even higher as Russian energy, base and rare metals, and agricultural commodities go absent from global markets. Prices for oil, natural gas, food and metals are testing historic highs. Despite pockets of pent-up demand strength due to the global easing of COVID-19 restrictions, high commodity prices will soon start to erode demand strength.”

Key takeaways from the report:

  • In the near term, it would be down to OPEC, strategic stock releases and a potential return of Iranian crude to meet the shortfall in global supply. Beyond a year, short-cycle U.S. crude would start to have an impact as would more structural demand suppression from higher prices and lower GDP growth.
  • In the long term, energy security will be elevated as a political priority, which will in turn boost domestic production of oil and gas in North America, while even greater emphasis is placed on the energy transition and renewable technology and investment.

Members of the media should contact Jon Haubert to schedule an interview with one of Enverus Intelligence Research’s expert analysts.

About Enverus
Enverus is the leading energy SaaS company delivering highly-technical insights and predictive/prescriptive analytics that empower customers to make decisions that increase profit. Enverus’ innovative technologies drive production and investment strategies, enable best practices for energy and commodity trading and risk management, and reduce costs through automated processes across critical business functions. Enverus is a strategic partner to more than 6,000 customers in 50 countries. Learn more at Enverus.com.

About Enverus Intelligence Research
Enverus Intelligence Research, Inc. is a subsidiary of Enverus and publishes energy-sector research that focuses on the oil and natural gas industries and broader energy topics including publicly traded and privately held oil, gas, midstream and other energy industry companies, basin studies (including characteristics, activity, infrastructure, etc.), commodity pricing forecasts, global macroeconomics and geopolitical matters.  Enverus Intelligence Research, Inc. is registered with the U.S. Securities and Exchange Commission as an investment adviser.

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