Energy strategy 2016-2030: Internal regulations make Romania uncompetitive. Domestic oil production to drop

Romania is not uncompetitive in terms of oil and gas prices, but rather because of internal regulations, so it is very important that the decisions on the new oil tax framework to be taken consulting all important factors, the minutes of a meeting between officials of the Ministry of Energy and specialists in the field shows, on the drafting of Romania’s Energy Strategy, valid for 2016-2030, in view of 2050.

They gave as an example the recent ANAF order to guarantee products under suspension – the goods can be stored for 45 days in port free zone without payment of duty; the term was reduced.

„It’s important to permit the tax warehouses,” the minutes of the meeting posted on the ministry’s website reads.

According to the document, the “Diesel scandal” started last fall, it could lead to a decrease on the diesel market. However, it is possible in the coming years, to occur a reshaping of diesel’s proportions of the total oil products, especially compared with gasoline.

Energy Ministry plans to amend the normative act concerning the establishment and maintaining minimum stocks level of crude oil and petroleum products and publicly debated both the definitions underlying the formulation of amendments and principles to guide the establishment of new forms of law text, relying on the contribution of operators too.

Between March 9 to April 15, the Ministry of Energy carried out a qualitative analysis of the energy sector in order to draft Energy Strategy 2016-2030 with outlook for 2050.

According to Radu Dudau, advisor to the Energy Minister and coordinator of the drafting of the quoted “Romanian Energy Strategy”, around 200 top-level experts from the Romanian energy sector, Government, Parliament, world of academia, companies, regulatory agencies and other ministries will be involved.

The Ministry of Energy will complete this autumn Romania’s Energy Strategy, valid for 2016-2030.

Currently, Romania has a national energy strategy adopted in 2007, which is valid until 2020.

The estimated completion deadline of the document is September 15, 2016, and the goal is that the final document becomes subject to parliamentary debate and is assumed by the Romanian Parliament by law.

The same document shows that Romania’s oil production will decrease on short and medium term, and the production costs will be increasingly higher, as the resources will come from great depths. Specialists pointed out that does not yet exist a fair assessment of natural resources potential of the country