Russian oil sector attracts investors

In 1987, Russia produced more oil than any other country in the world. At 11.5m barrels per day (bpd), the then communist country's production far exceeded that of oil giant Saudi Arabia (4.6m bpd) and accounted for nearly 20% of the world's total. By 1996, however, the industry had deteriorated and production had fallen to just over 6m bpd. Domestic consumption also fell during this period from 5m bpd to 2.6m bpd. This dramatic decline in production resulted from a combination of factors: a state-owned industry, with inefficient practices and mismanagement was operating in an environm...