Romania’s proven gas reserves will run short in the upcoming nine years, while the crude oil provisions will run short in 12 years if investments for new hydrocarbons are made, said Artur Stratan, president of the Romanian Petroleum Exploration and Production Companies Association (ROPECA) told a press conference on Wednesday.
“The exhaustion level of the gas reserves is 90%. We only have the possibility to produce hydrocarbons in Romania for a limited period, 12 years for the crude oil and 9 years on natural gas. Onshore proven provisions are only for this period without further investments,” Stratan argued, reminding that the oil price has fallen in the past 2 years, which put a high pressure on the oil field investments.
“A lot of investments have been cancelled last year and in 2016 and the production will keep decreasing. The state admits that and, if Romania used to be an energetically safe country until now, it will have to make larger and larger imports. So, instead of subsidizing the domestic market, we’ll subsidize the industries of other countries. Without these incentives, the domestic gas industry is doomed to failure soon,” ROPECA head stated.
Moreover, he explained that if the crude oil price’s pressure goes on, a lot if marginal deposits will be retroceded. “The key to continue drilling these deposits is the amendment of the tax regime and grating fiscal facilities,” he concluded.