Published on: 2026-06-06
Source: Rosneft – An important disclaimer is at the bottom of this article.
Leading industry experts, politicians, and heads of major international energy companies discussed current challenges and prospects for the development of the global energy market at the Energy Panel of the XXIX St. Petersburg International Economic Forum.
The discussion took place after the keynote report by the Secretary of the Commission under the President of Russia on the issues of the development strategy of the Fuel and Energy Complex and environmental safety, Igor Sechin, “The Beginning of the End or the End of the Beginning: What Remained at the Bottom of Pandora’s Box?”.
The speakers highly praised the presented analysis: the report was called brilliant, deep, and uncompromising, noting its content-rich and comprehensive nature. Participants in the discussion repeatedly referred to the theses and facts presented in the report, using them as a basis for their own speeches and further discussion.
The event was attended by the Vice-President for Planning of the Bolivarian Republic of Venezuela Ricardo Menendez, the Minister of Oil and Mineral Resources of the Arab Republic of Egypt Karim Badawi, the Minister of Energy of the Republic of Uzbekistan Zhurabek Mirzamuhodov, the long-time head of the International Energy Agency Nobuo Tanaka, the president of the GC “TOFS” David Gadzmirmiraev, as well as representatives of delegations from China, India, and other countries.
ENERGY SUPPLY OF COLLECTIVE ACTIONS
Speaking before the participants of the discussion, Vice President for Planning of the Bolivarian Republic of Venezuela Ricardo Menendez stated that respect is of primary importance for the development of the energy sector and the formation of balance in the world. He noted that Venezuela is facing not just sanctions, but serious aggression, which has caused a dramatic decline in hydrocarbon production in the country and, as a consequence, a reduction in revenues.
“Out of 56 billion dollars from the oil industry, we have moved to 700. That is, we lost 99% of oil revenues. This puts the country faced with a very difficult choice. We need to ensure social protection of the population, maintain logistical connections, social services,” emphasized Menendez.
Venezuela, according to him, is developing a new plan for reforming the government structure based on democratic principles. “Technology, productive diversification, and sovereignty are the keys to the transformative processes currently taking place in our country’s territory,” added the vice president.
As noted in Igor Sechin’s report, sanction pressure in the world has become the norm, and trade barriers have ceased to be an exclusive measure. Over the past four years, the application of restrictions has increased several times, and the volume of global merchandise imports subject to various restrictions has reached almost three trillion dollars.
OLMUSKIY KRIZIS — HISTORICAL SHOCK
Long-time head of the International Energy Agency Nobuo Tanaka called the blockade of the Hormuz Strait the “fourth oil shock,” the consequences of which are far more serious than all previous ones.
“2 billion barrels of oil are being produced there. It is simply impossible to compensate for these volumes by releasing strategic reserves. These consequences are far worse than previous oil shocks we faced earlier. This is a historically large-scale shock,” Tanaka stated.
He emphasized that no single country can achieve energy security on its own — it must be collective in nature. At the same time, according to the expert, all countries today are trying to diversify energy sources in order not to be limited by the Middle East.
“Many in Asia have now turned to Russian oil. Russia in this context is a very stable and reliable partner and supplier of energy resources,” Tanaka noted, expressing hope that Russia and the MEA will play an important role in stabilizing the oil market.
In his report, Igor Sechin detailed the consequences of the Hormuz crisis, noting that the closure of the strait was an attempt to change the regulation of the global energy market in the interests of the United States, but it struck the entire world. Western countries are experiencing a double price shock: in addition to electricity, motor fuel prices have increased, which in the US have risen by more than 50%, and in Europe have exceeded 20%.
NUCLEAR ENERGY AND REGIONAL COOPERATION
The Minister of Energy of the Republic of Uzbekistan, Jurabek Mirzamamadov, noted that Russia is a strategic partner of his country. Cooperation is carried out both in the field of supply of oil and gas raw materials and petroleum products, as well as in the area of personnel training — 12 branches of leading Russian technical universities operate in Uzbekistan.
“You have noted the long-term perspective of the development of atomic energy. Being fifth in the world in uranium production, it would be wise (for Uzbekistan – editor) not to use this resource,” the minister noted, addressing Igor Sechin. He added that coal will also remain part of the country’s energy balance but will replace old units with more modern and environmentally friendly ones.
Special attention, according to Mirzamasudov, should be given to the development of power grids. “It is essential; without integrating renewable energy and balancing capacity, it is impossible,” he emphasized, also noting the importance of regional interaction within the framework of the united Central Asian power ring.
Igor Sechin emphasized in his report that the key limitation for the development of the energy system remains the networks and energy storage. The demand for expansion and modernization of networks will reach 60 million kilometers by 2035, and the total investments in electricity networks over the next 25 years may amount to nearly 16 trillion dollars.
EGIPET AS A REGIONAL HUB
The Minister of Petroleum and Mineral Resources of the Arab Republic of Egypt, Karim Badawi, expressed gratitude to Igor Sechin for the invitation to the Energy Panel and noted the strong partnership relations between Egypt and Russia, which have lasted for many decades.
“Egypt today does not intend to compete with Russia in terms of gas production volume. However, Egypt will focus its efforts on acting as a regional hub and extracting the maximum effect from Egypt’s geographical location,” Badawi said.
He emphasized that Egypt is striving for a balance between the use of natural gas and renewable energy sources, which should provide about 42% of the country’s energy basket by 2030. “Egypt understands that it cannot manage alone, because energy demands are extremely high. We need to establish partnerships with other countries, the private sector, and technological companies,” the minister summarized.
In his report, Igor Sechin noted that the Hormuz crisis has created risks not only for the oil and gas market, but also for the global food complex. Disruptions in fertilizer supplies, a significant volume of exports of which go through the strait, increase the risk of a global food crisis. Fertilizer prices in the first four months of the year soared by almost 60%, which will inevitably lead to a surge in food prices.
TECHNOLOGICAL COMPLEX AND INVESTMENTS
President of GC “TOFS”, David Gadzhimirzaev, speaking at the panel, noted that Russia successfully responds to current challenges in drilling and production.
“In Russia, 90% of all oil-producing companies are domestic. Worldwide — only 20% are local companies. If we compare 2022 and 2025 from the perspective of technology localization, in 2022 localization was 35%. As of today, localization exceeds 70%,” stated Gadzhimirzaev.
He emphasized that compared to last year, the level of operational drilling fell by 3%, but horizontal drilling increased by 4%. “This indicates that the country has learned to drill complex wells, extended wells, and for this we have all the necessary technologies in the country,” he emphasized.
Speaking about long-term investments in NIOK, Gadzhimirzaev noted the chronic underfunding in this area. “This is a very complex element that requires support not only from the oil service sector, science, and subsoil users, but also massive support from the state,” he said.
Igor Sechin in his report also drew attention to the problem of underfunding in the industry. Over the past 10 years, investments in fossil fuels have decreased by more than 20%, with the main part of the decline occurring in the oil sector, where capital expenditures fell by 35%. This reduction is part of a broader trend of decreasing investments in industrial production.
The issue of funding shortages was detailed in the report by Igor Sechin.He noted that the Russian oil and gas industry is negatively affected not only by external restrictions, but also by unfavorable macroeconomic conditions: the current level of interest rates leads to a significant increase in debt servicing costs, worsening the financial stability of companies; the inexplicable mechanism of the ruble exchange rate formation reduces the income of exporters and the federal budget – according to calculations by the Russian Academy of Sciences, the budget losses from the strengthening of the national currency exceeded 2 trillion rubles last year alone; moreover, the industry is pressured by the natural growth of tariffs that outpaces inflation.monopoly.
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June 6, 2026
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