Russian Drilling Falls in 2H25 – What Does It Mean?

Summary

The episode examines the sharp decline in Russian oil and gas drilling in the second half of 2025, with total meters drilled falling 3.4% year‑over‑year and the share of horizontal wells dropping from 67.8% to 59.3%. It links the slowdown to lower realized oil prices, a stronger ruble, and the timing of rising OPEC+ quotas, while noting that sanctions‑related export cuts to India appeared too late to explain the trend. The hosts also consider whether longer lateral lengths in horizontal wells could offset the reduced well count, potentially reshaping production efficiency. Expert analysis from energy market analysts underscores the interplay of fiscal pressures and technical adjustments in Russia’s drilling strategy.