Market Trends of Romania Oil and Gas Upstream Industry
This section covers the major market trends shaping the Romania Oil & Gas Upstream Market according to our research experts:
Onshore Segment to Dominate the Market
- The Romanian government launched a public tender for the exploration, development, and production operations of 22 onshore and six offshore blocks within Romania's territorial waters of the Black Sea.
- The onshore oil and gas market has about 400 deposits, most of them are small and fragmented, requiring the use of specialized technologies. Romania has the largest number of active wells in Europe. Romania's oil production is majorly from Black Sea platforms.
- Oil resources are publicly owned in Romania. Exploration and production are undertaken through concession agreements between economic agents and the National Agency for Mineral Resources, which are granted as a result of public auctions.
- Considering the 2018 proved reserves of 42.2 megatonnes of crude and condensate, Romania's reserves are estimated to deplete over the next 20 years dependent on the rate of extraction.
Understand The Key Trends Shaping This Market
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Increasing Natural Gas Demand is Expected to Drive the Market
- Romania is relatively self-sufficient in natural gas, with imports averaging around 10-15% over the past few years and the Black Sea resources have the potential to turn the country into a net exporter.
- The annual consumption has reached 10.9 megatonnes in 2018. Therefore, while domestic production accounted for 33% of demand in 2018.
- Romania has a century of experience in natural gas production. According to BP, in 2018, 9.5 billion cubic meters (bcm) of gas were brought to surface locally and the remaining quantity of 1.4 bcm was imported to cover domestic consumption.
