September 8, 2020
On the occasion of Oilman Day, FPPG thanks the tens of thousands of dedicated people in the industry. Despite the major restrictions generated by the pandemic, they were permanently on duty and provided absolutely vital energy resources for the Romanian economy. Happy Anniversary!
”Maintaining the security of energy supply would not have been possible without the involvement of people in the industry who have shown that we can overcome any obstacle by complying with virus prevention measures. We therefore express our gratitude on this anniversary day and encourage all workers to remain vigilant, given the increase in the number of Covid-19 cases confirmed by in Romania, ” declared Franck Neel, president of the Federation of Employers of Oil and Gas (FPPG)
Romania has one of the oldest oil and natural gas industries in the world. With over 100 years of natural gas production and over a century and a half of industrial oil extraction and refining, this industry has continuously supported Romania’s economic development. And it won’t stop here. But there is a need for swift and firm action by state authorities to help industry meet the new global challenges posed by the technological revolution and climate change.
In the context of Petrol Day, celebrated annually on September 8, the oil and gas industry reiterates the urgent need for measures by the authorities, such as unblocking the digilatisation process.
“Updating the legislative framework to technological progress is absolutely necessary for this sector to remain globally competitive and adapted to modern times. Cloud solutions would bring immediate benefits, with a direct impact on the level of production and, implicitly, of the taxes transferred to the state budget. They are all the more necessary in Romania, where most of the deposits are mature and fragmented, and the production per well is among the smallest in Europe”, says Franck Neel.
Access to new technologies (Cloud, Big Data, Cloud Computing) is imperative given the collapse of hydrocarbon prices at extremely low levels, due to the pandemic that led to a significant decrease in demand.
New challenges posed by the European Ecological Pact
The new European Green Pact also puts additional pressure on the local oil and gas sector. Significant investments in innovation and modern technologies are needed for the industry to maintain a relevant role in society, adapted to the new environmental requirements. Natural gas can play a major role in this transition to a zero carbon economy by 2050. The industry has the capacity to contribute to the modernization of its thermal power plant fleet for efficient and low-carbon energy production. At the same time, the natural gas sector can support the transformation of Romania’s economy by offering solutions for sustainable transport, but also through new technologies, such as hydrogen.
“In order to achieve all these objectives, however, a coherent plan of legislative measures is needed to support the continuation of production. The recovery of hydrocarbon resources in the Black Sea is absolutely necessary to support the development of the economy and its modernization into a low-carbon one. In addition, it would transform Romania into an even more important producer of natural gas at European level, thus continuing the tradition of over 100 years in the field “, adds Franck Neel.
However, the start of production in the Black Sea – the largest private investment in recent decades and also one of the historic investments in the Romanian oil and gas sector – requires a stable and predictable legal framework and, above all, the corresponding amendment of the offshore Law.