2013-03-23 08:26:12 - Recently published research from Business Monitor International, "Romania Oil & Gas Report Q2 2013", is now available at Fast Market Research
BMI View: The exploration efforts of ExxonMobil and OMV Petrom in the Black Sea could signal a turning point in Romania's upstream outlook, helping reduce dramatically the country's gas import dependency from around 2018. International oil company (IOC) interest in Romania is now on the rise and, if exploited by the government, could result in much higher investment levels. Romanian Prime Minister Victor Ponta ha said that he supports shale gas exploration in the country, bringing hope to Chevron and other IOCs keen to investigate the country's significant shale gas potential.
The main trends and developments for Romania's oil and gas sector are:
* Romanian Prime Minister Victor Ponta said in January 2013 that he supports shale gas exploration in the
country, although the country plans to make a final decision on drilling once it has confirmation of resources in about five years' time.
* In 2012, Romania imposed a de facto moratorium on the practice of hydraulic fracturing (fraccing). Although the senate rejected an outright ban in July 2012, operators have held back from exploration, apparently in deference to continued public opposition. The new Romanian government does now appear to be shifting its position to a more positive stance, according to IHS Global Insight.
* ExxonMobil and OMV Petrom discovered natural gas with their Domino-1 deep water exploration well in the Romanian sector of the Black Sea, and early estimates of up to 85bn cubic metres (bcm) have been attributed to the prospect. The discovery well in the Neptun block, in water depths of approximately 1,000 metres (m), was drilled to a total depth of more than 3,000m. A 3D seismic programme is being conducted before further drilling takes place to prove-up the block's potential. If successful, first production is unlikely before 2018.
* Romania's government plans an additional tax in 2013 on gas producers, which are enjoying higher profits as a result of the country's energy market deregulation, a draft law showed in January 2013. The tax revenue will subsidise households that are expected to be hurt by rising charges as the European Union's second-poorest state liberalises energy prices, an ongoing process lasting until 2017 for the electricity sector and 2018 for gas.
* Natural gas consumption - estimated 13.4bcm in 2012 - is expected to reach at least 15.9bcm by 2017, then rise further to 18.2bcm by 2022. Romania's gas production is forecast to be no more than 8.6bcm by 2017, resulting in a net import requirement of at least 7.3bcm. However, success in proving up the Domino find in the Black Sea could mean volumes rising towards the end of the forecast period - potentially exceeding 10bcm in 2018 and reaching 17bcm by 2022.
* The construction of a bi-directional Iasi-Ungheni gas pipeline, connecting the gas networks of Romania and Moldova, will provide an alternative source of gas supply to both countries. The EUR19.2mn (US $24.9mn) pipeline will have an annual throughput of 1.5bcm. The pipeline will have a length of 43.2km, of which 32.8km will be in Romanian territory. Construction work is expected to last 17 months, with Romania investing approximately EUR12mn (US$15.6mn) in the project.
* Oil demand has stagnated in recent years and will only grow once underlying economic activity picks up. We do not expect to see demand growth reaching 3.0% per annum until beyond 2014, implying consumption of no more than 254,800b/d by 2017 and 282,700b/d by 2022. We see domestic liquids production slipping from an estimated 105,500b/d in 2012 to less than 93,700b/d over the period to 2017.
Full Report Details at
Partial Table of Contents:
BMI Industry View
- Oil And Gas Reserves
- Table: Romania Proven Oil & Gas Reserves And Total Petroleum Data, 2011-2017
- Table: Romania Proven Oil & Gas Reserves And Total Petroleum Data, 2016-2022
- Oil Supply And Demand
- Table: Romania Oil Production, Consumption And Net Exports, 2011-2017
- Table: Romania Oil Production, Consumption And Net Exports, 2016-2022
- Gas Supply And Demand
- Table: Romania Gas Production, Consumption And Net Exports, 2011-2017
- Table: Romania Gas Production, Consumption And Net Exports, 2016-2022
- Refining And Oil Products Trade
- Table: Romania Refining - Production And Consumption, 2011-2017
- Table: Romania Refining - Production And Consumption, 2016-2022
- Revenues/Import Costs
- Key Risks To BMI's Forecast Scenario
Industry Risk Reward Ratings
- Romania Upstream Rating - Overview
- Romania Upstream Rating - Rewards
- Romania Upstream Rating - Risks
- Romania Downstream Rating - Overview
- CEE - Risk/Reward Ratings
- Table: Central And Eastern Europe Risk/Reward Ratings
- Caspian Keeps Lead In Upstream Rankings
- Table: Upstream Risk/Reward Rating
- Russian Trouble Persists
- Regional Minnows Breaking In
- Downstream Stabilisation
- Table: CEE Downstream Risk/Reward Ratings
- Romania Energy Market Overview
- Licensing And Regulation
- Government Policy
- Licensing Rounds
- International Energy Relations
- Oil & Gas Infrastructure
- Oil Refineries
- Table: Refineries In Romania
- Service Stations
- Oil Storage Facilities
- Oil Terminals/Ports
- Oil Pipelines
- LNG Terminals
- Gas Storage Facilities
- Gas Pipelines
- Table: Key Players - Romania Oil And Gas Sector
- Table: Key Upstream Players
- Table: Key Downstream Players
- OMV Petrom
- Other Summaries
- Regional Energy Overview
- The Ties That Bind
- Loosening The Bear Hug
- Central Asia: Beneficiaries Of Europe's Russian Fatigue
- Looking To LNG
- Russian Retaliation
Global Industry Overview
- Global Energy Market Overview
Full Table of Contents is available at:
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at www.fastmr.com
or call us at 1.800.844.8156.