The oil and gas industry is a very strong industry, and the numbers amply prove it. Earlier this year, the Consilium Policy Advisors Group (CPAG) and FPPG released a study dedicated to the impact of this sector on the Romanian economy in the first semester of 2022, entitled The contribution of the oil and gas industry to Romania's economy, 2nd edition.
In the program EM360 Talk, Adrian Măniuțiu discussed with Laurian Lungu, macroeconomist, founder Consilium Policy Advisors Group, about the role of this study.
The context for this analysis was the economic growth of the industry, recorded in 2022, which was also reflected in the contribution to the Romanian State:
- the Romanian state collected more.
- the improved results, even if they were cyclical, had an impact on gross value added; Romania's economic growth was 4.8%, and part of this was due to the oil and gas sector.
Because economics is all about business cycles, it is useful to know the trends over a given period, and this study accomplishes that task. This analysis also presents the industry's point of view and is a useful basis for dialog with decision-makers, who can form a correct view with a scientifically based information tool at their fingertips.
Laurian Lungu underlined the favored position of our country as a natural gas producer in the context of the energy crisis. Other countries have also experienced price increases, but in Romania, through the contribution of the oil and gas sector, the redistribution of budget revenues that supported the price cap was more easily achieved. The additional taxes paid by the companies belonging to this industry practically supported this budgetary effort.
Talking about prospects, our guest said that it is expected that, through the Black Sea exploitations and not only, this sector will remain an important one for the Romanian economy for many years to come.
The discussion on the study provided the opportunity for further analysis on taxation in Romania, tax rulings and the „captive taxpayer” status of the oil and gas industry. For details and conclusions, please watch the recording.
