Two seasoned observers of the Russian oil industry analyze the country's policy response to developments in its mineral resources base (often perceived as an exploration crisis), with a focus on oil. The authors review and discuss trends in exploration (including its organization and efficiency), recent developments in its financing, and the reorganization of exploration activity. The evolution of Russia's licensing system is presented, drawing attention to changes that have affected incentives, risks, and barriers to potential resource users, both Russian and foreign. Also identified are conflicts between the objectives of resource managers and broader political goals and interests. Journal of Economic Literature, Classification Numbers: L710, Q310, Q380, Q410. 4 figures, 40 references.