Contribution of the oil and gas industry to Romania's economy 2022

The role of the oil and gas sector in Romania has grown exponentially since the beginning of this decade. The scientific approach used by Ec. Dr. Laurian Lungu to highlight the direct economic dimension of this sector in the context of the Romanian economy, requires no further elaboration and underlines how crucial this industry is becoming.

The total impact of our industry on the economy (i.e. including direct, indirect and induced effects) is more than significant, increasing from 3.1% of GDP in 2020 to 4.1% of GDP in 2021 and about 8% of GDP in 2022 alone.

The above figure underestimates the real impact of the sector on the economy, as some of the companies were not part of the survey. In addition to the growth due to the economic recovery after the pandemic and the effect of sustained investment over the last 10-15 years, a significant part of this gain is attributed to the increase in oil and gas prices worldwide.

However, the positive impact on the Romanian oil and gas sector economy has facilitated new state-built instruments to alleviate the many symptoms of a decade complicated from multiple perspectives.

The need for this sector in difficult times has been historically proven since the beginning. The energy crisis was perceived as a more serious threat than anything else by a significant number of Europeans, at a time when Romanians already had compensation schemes that were financed by taxing this sector.

Threats to security of supply and bottlenecks in weak energy mixes are, fortunately, marginal concerns for Romania at the moment, thanks to local production of oil, but most importantly, natural gas.

Natural gas is probably the most important energy source today, playing a significant role in maintaining security of supply for most countries around the world.

The popularity of natural gas as a fuel source is due to its clean-burning characteristics, affordability and versatility. Security of supply of natural gas is thus essential to ensure the reliability and availability of the European economy.

A secure gas supply provides predictability, consistency and can meet the public and industrial demands of its users without interruption. This can be achieved through a combination of factors, such as a robust and flexible infrastructure, reliable supply sources and many other aspects that are part of our constant dialog with the authorities.

We hope to see Romanian production increase in the coming years, especially through offshore and onshore projects, which will strengthen the country's role in the new energy security architecture of the region of which it is part. Through this industry, Romania has the potential and the responsibility to have a greater impact in reshaping Eastern European security in all its dimensions and improving the living standards of Romanians.

This is achieved mainly through taxes from the major contributors to this industry, which is a vital source of revenue for Romania, providing the resources needed to finance public services, promote economic growth, reduce income inequality, pay down government debt and promote social stability.

This study reconfirms that the natural gas industry remains a strategic sector for Romania. We assure you that we understand our role well and we remain aware of the expectations that we are facing, which we want to honor in the future, defending the interests of Romanians, today and in the future.

Our involvement is not limited to the economic contribution we make year after year, but we want to continue to be a solid and real partner, a provider of energy security and balance, both in the context of the geopolitical turbulence we are going through and in the context of the transition towards decarbonization.

For more than 150 years, without ceasing, we remain a pillar of stability and partnership in our country.

In conclusion, we take a clear message: we are here to build the future together with all those who believe in Romania.

Signed by
FPPG Board of Directors