28 February 2017, 04:10 GMT
MOSCOW (Sputnik) — He said three largest US shale companies faced serious asset impairment during the 2015 slump in oil prices, writing down a combined $55 billion in shale assets.
The drop in oil prices in the past few years has put pressure on US shale producers, many of which loaded up on debt to drill wells and expand production before the price collapse. Some companies were able to hedge against the loss with futures contracts, but a sustained oil bear market took its toll on the sector.
"We made a conscious and justified decision to steer clear of the global shale frenzy, we think it was the right thing to do," Aksyutin said at an economic event in Singapore.
The results prove that there are possibilities for a full-scale exploration of these resources in the future, the company says, noting that so far there have been no methods devised for the commercial exploitation of the formation.
