On the occasion of the Day of the Petrolist, FPPG thanks the tens of thousands of dedicated people in the industry. În spite restricThey have been permanently on call and have provided energy resources absolutely vital for Romania's economy. Happy birthday!
”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 following the virus prevention measures. We therefore express our gratitude on this anniversary day and encourage them to remain cautious, given the increasing number of confirmed cases of Covid-19 in Romania”, says Franck Neel, President of the Oil and Gas Employers' Federation (FPPG).
Romania has one of the oldest oil and gas industries in the world. With more than 100 years of natural gas production and more than a century and a half of industrial crude oil extraction and refining, this industry has continuously supported Romania's economic development. And it will not stop here. However, swift and firm measures are needed from the state authorities to help the industry meet the new global challenges brought about by the technological revolution and climate change.
In the context of the annual Day of the Petrolist, celebrated on September 8, The oil and gas industry reiterates the urgent need for action from the authorities, such as Unblocking the digitization process.
„Updating the legislative framework to technological progress is absolutely necessary for the 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, on the taxes paid to the state budget. They are all the more necessary in Romania, where most reservoirs are mature and fragmented, and production per well is among the lowest in Europe,” says Franck Neel.
Access to new technologies (Cloud, Big Data, Cloud Computing) is imperative given the collapse of hydrocarbon prices to extremely low levels due to the pandemic which has led to a significant drop in demand.
New challenges brought by the European Ecological Pact
Europe's new Ecological Pact also puts additional pressures on the local oil and gas sector. Significant investment in innovation and modern technologies is needed if the industry is to maintain a relevant role in society, adapted to new environmental requirements. Natural gas can play a major role in this transition towards a net-zero carbon economy by 2050. The industry has the potential to contribute to the modernization of the 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 providing solutions for sustainable transportation and new technologies such as hydrogen.
„To achieve all these objectives, however, we need a coherent plan of legislative measures to support continued production. The exploitation of hydrocarbon resources in the Black Sea is absolutely necessary to support the development of the economy and its modernization into a low-carbon economy. In addition, it would make Romania an even more important producer of natural gas at European level, thus continuing its more than 100-year tradition in this field”, adds Franck Neel.
In order to start production in the Black Sea - the largest private investment of the last decades and also one of the historical investments in the Romanian oil and gas sector - a stable and predictable legal framework is needed, and, in particular, the appropriate amendment of the Offshore Law.
