National oil deposits are depleting? Two-thirds of output import was used last year

Last year, Romania used 11.22 million tons of oil, of which 4.07 million tons of domestic production and 7.5 million tons of import, Commission for Economic Forecasting (CNP) data reveal.

Moreover, Romania could remain without its own crude oil production in 23 years, the National Commission estimates. Companies’ reduced investments in exploration and production are to blame amid low oil prices in the international market.

“It is estimated that in terms of an average annual production of approx. 4.2 million tons, under a steady decline of secure reserves of 5.0 percent and a replacement rate of also 5.0 percent, the Romania’s current oil reserves could be depleted in 22-23 years,” the report reads.

Crude consumption was higher by 3.9 percent over that of 2014, when nationwide 10.79 million tons have been used “During 2010-2015, the production dropped by an average annual rate of 1.2 percent, while the import had an oscillating evolution, increasing towards the end of the period, this is likely due to the increased demand for fuels derived from crude oil, amid the sharp drop of the oil barrel price. This development is also supported by the increase of 5.8 percent compared to the same period of the previous year, by the turnover volume in retail trade of automotive fuel”, CNP shows. According to the report, the sharp decline of oil prices in recent months has led the oil companies to give up a part of the investment.

“OMV Petrom’s investment program for 2015, estimated at around EUR 1 billion, of which almost 85 percent is for exploration and exploitation projects, has been cut by about 30 percent compared to the previous year. Therefore, according to group’s makers, this reduction will have a negative impact on the future production of hydrocarbons. Company’s representatives also envisage that a medium low potential of oil price over a long period is expected to lead to a decline in annual investment in exploration and production by 25-35 percent, as well as of hydrocarbons output up to 4.0 percent during 2015 – 2017 compared to 2014,” the report also says.

In the first ten months of 2015, there was an increase of gasoline production by 1.8 percent and of diesel output, by 3.2 percent.

Number of employees in manufacturing grew at end-October 2015 by 3.7 percent compared to end-October 2014 or 40,500 people, reaching to 1.1 million employees in total.