Drilling activity in Russia’s oil sector fell to its lowest level in three years in 2025, under pressure from Western sanctions, a strong ruble and falling world prices, a indicator that threatens prospects for production growth.
slowdown in activity
According to data reported by Bloomberg, Russian oil companies drilled about 29.14 million kilometers of production wells last year, a 3.4% decrease compared to 2024. Nevertheless, after a record drilling pace in the first few months of 2025, activity slowed from June, resulting in an annual decline of around 16% in December.
Bloomberg analysts believe the decline in drilling activity is a natural response to lower profit margins as companies shift to preserving cash liquidity and rationalizing capital spending.
Drilling activity in Russia’s oil sector will fall to its lowest level in three years in 2025, posing a threat to production growth prospects amid pressures from Western sanctions, a strong ruble and falling global prices.
slowdown in activity
Russian oil companies drilled about 29.14 million kilometers of production wells last year, a decline of 3.4% compared to 2024, despite a record drilling pace in early 2025, according to data reported by Bloomberg. Activity has slowed since June and was down about 16% year-on-year in December.
Bloomberg analysts believe the decline in drilling activity is a natural response to lower profit margins as companies move toward preserving cash liquidity and rationalizing capital spending.
