Within this new reality and the ensuing global crisis, COP27 was seen by some as an “oasis of diplomacy”, to quote US Secretary of Energy Jennifer Granholm – a space where countries could come together to act on the global challenge that is climate change. But while countries did come together in some landmark agreements, they left Sharm-el-Sheikh without much progress on actual action to mitigate climate change.
As part of the ConsenCUS project, EPG is analyzing the narratives and perceptions surrounding carbon capture, utilization and storage (CCUS) in Romania, where a novel carbon capture and conversion technology will be demonstrated in the near future.
Acest policy brief rezumă foaia de parcurs pentru avansarea captării și stocării carbonului (CCS) în România, dezvoltat de EPG în cadrul proiectului CCS4CEE. În această foaie de parcurs, EPG prezintă o serie de acțiuni concrete care trebuie implementate de către guvern, operatori economici și alți actori, pentru a realiza proiecte CCS și a contribui la atingerea țintelor de decarbonizare ale României.
This policy brief summarizes EPG’s roadmap for advancing CCS in Romania, written as part of the CCS4CEE project. In this roadmap, EPG presents a list of actions for implementation by government, economic operators and other actors, to make CCS projects a reality and contribute to Romania’s industrial decarbonization targets.
Șocul geopolitic cauzat de invazia militară a Ucrainei de către Federația Rusă zguduie nu doar sistemul european de securitate, ci și securitatea energetică a Uniunii Europene, care își acoperă nu mai puțin de 40% din consumul de gaze naturale prin importuri din Rusia. Între statele est-europene puternic dependente de importurile de gaze rusești, România are o situație relativ privilegiată, fiind un producător semnificativ de gaze.
Carbon capture and storage (CCS) refers to a chain of technologies deployed to capture, transport and store CO2 away from the atmosphere, mitigating its warming effect on the climate. For each step in the CCS process, a range of technologies has been developed and tested for different industries and operating conditions, making CCS a complex value chain rather than a single, “off-the-shelf” technology as it is sometimes portrayed
This executive summary provides a brief overview of the report “Assessment of current state, past experiences and potential for CCS deployment in the CEE region”, written as part of the CCS4CEE project.
In this study, EPG brings together the work of project partners in Work Package 3 of the CCS4CEE project. The resulting report is an in-depth analysis of the current context and opportunities for carbon capture and storage (CCS) in the Central and Eastern European (CEE) region.
The global oil industry will continue to be battered by the constraints of climate policies, divestment and lowering returns. True, a depressed oil price environment disincentivizes investment in renewable energy sources, electromobility and, alas, energy efficiency – a lesson well learned in the aftermath of the 2014 oil industry downturn.
The fundamental market drivers are pointing at a balanced oil market in 2020, with a Brent price mostly within the $60-70 a barrel – unless, that is, a massive escalation of the geopolitical tensions occurs, following the targeted killing of Iranian general Soleimani, causing large and indeterminate oil supply disruption.
In a market economy, the term hub generally refers to the intersection of several commercial routes, where an abundance of merchandise from various sources prompts the closing of many deals “on the spot,” transparently, with amounts and prices known to all traders present.
This report analyzes the current natural gas sector from the point of view of reserves, infrastructure and market setup. The study also addresses the prospects for the evolution of different segments of natural gas consumption by 2030 and provides appropriate policy and regulation recommendations which would lead to the value-added capitalization, on the Romanian Market, of the expected Black Sea natural gas production but also of onshore deposits.
The Economy Ministry published in October the draft law for mineral, petroleum, and hydro-mineral resources. The document includes a much anticipated new royalties’ framework for the upstream O&G sector.
Romania´s petroleum tax regime is under review, with lingering uncertainty about its future design. The article discusses strategic considerations of this review, in light of the country expected (but equally unclear and overdue) long-term energy strategy.
This paper traces the history of how states came to cooperate in the development of offshore cross-border oil or gas deposits. First, it explains the shift in how a state´s offshore has come to be viewed from “open to all” to sovereign rights over an exclusive economic zone and finally to cooperation in the interest of all parties concerned. Secondly, it discusses the types of agreements states signed and the problems these agreements solve.
Is this a turning point towards substantially higher oil prices? Most likely not. The same rebalancing mechanism of shale oil producers kicking in at higher crude prices will be prompted. However, we may well see a longer-lived equilibrium around $60 a barrel of Brent, which can make everyone happy for a couple of years.
Natural gas is the most important form of energy in Romania’s the final consumption structure. In 2015, gas accounted for 29% of the total demand, followed by oil products with 26%, 19% renewable energy sources (RES (including hydro), 17% coal and 9% nuclear energy. Gas consumption is almost equally divided between the domestic and industrial sectors – in the latter gas is used primarily in the production of electricity and as raw material in petro chemistry.
Plummeting oil prices and fallen revenues triggered a chain reaction in Turkmenistan, which has a current account deficit of about $6 bn. Ashgabat devalued the currency by 19%. There have been reports of massive food shortages and unpaid wages.
Romania’s capacity auction is a significant step in regional gas market opening. At the end of July 2016, Transgaz has signed gasinterconnection agreements with its Bulgarian and Ukrainian counterparts in order to increase interconnectivity and allow bidirectional flow from Ukraine to Greece.
The introduction of the additional tax must be fair, proportionate, reasonable, fair, and the level of taxation must be determined according to objective, rational financial criteria corresponding to the taxpayer contribution (according to the Romanian Counstitutional Court practice)
In Romania, a number of industrial sectors that serve the public interest are strictly regulated – natural gas, railroad or electricity systems, to name a few. As such, for the local energy sector, and particularly for electricity, the transmission and distribution services are regulated as “natural monopolies”
The adoption of a system that will allow a step-by-step liberalization of energy prices has proved to be an inspired measure, as Romanians would not have been ready for a sudden, direct shift to a free market. The ongoing debates in the Romanian society on vulnerable consumers emphasize just that
Romanian Government’s new approach to the oil and gas fiscal regime has all the features of a rigid framework, with meager chances of remaining stable on the long term. But how should a flexible and stable fiscal framework for upstream O&G look like?
A good deal of the political and media environment in Romania continues to promote or to dwell in confusion when it comes to the Romanian state´s gain from petroleum activities, popularly known as “the regime of oil royalties”.
During the evolution of the Romanian oil industry, the refining sector emerged at the end of the 19th century by way of a massive import of foreign capital and advanced technology. In 1895 the construction of Steaua Română refinery started in Câmpina, one of the largest in Europe of that time, with capital of Deutsche Bank.
The investment cycle of an oil project is long-term – typically 25-30 years, or longer for offshore projects. In addition, offshore projects in particular require large upfront exploration capital investments. Also, the investment risk for offshore exploration activities is high, and the cost recovery timeframe can be over a decade.
The 2018 calendar was supposed to bring a 3% increase in household gas prices as of 1 October 2014, as a first step towards timely liberalization. In light of the burden that would have thus fallen on households ahead of presidential elections held in December, the Government, through its Department of Energy, requested this delay.
The history of the oil and gas industry has been and is an intrinsic part of the economic and social development of modern Romania. Also, Romania has the prospect that, by the end of the current decade, it will become a top producer of hydrocarbons at European level – especially natural gas.
The Iaşi-Ungheni interconnector is a 43 km long pipeline meant to transport up to 1.5 bcm of gas per year from Romania to the Republic of Moldova, under the Prut River that constitutes the border between the two countries. Construction works only took one year, but they followed three years of talks between the two parties. Costs reached a total of €26.4m, most of which was covered by Brussels and Bucharest.
Compared to oil products, natural gas is clean burning, with virtually no particle and sulphur emissions, close to no NOx emissions, and lower CO2 emissions. Increasingly, it is also more affordable, despite higher logistics costs. Romania should follow the lead of many other countries around the world, and consider incentives for ship and truck owners to switch to natural gas.
The story of shale gas in Romania has somewhat been that of a fight. Chevron has had to deal with public opposition and outright protests, including clashes with police; mis- and dis-information, and a lack of understanding about the fracking procedure and its risks; overwhelming bureaucracy and a highly volatile and confusing legal procedure when it comes to unconventional gas drilling in the country, even though no moratorium was ever officially instated, like in neighboring Bulgaria.
Energy Policy Group, in partnership with the law firm Pachiu & Associates and PricewaterhouseCoopers (PwC), organized the roundtable discussion - Is it necessary to revise the Romanian oil & gas legislation?
The present study discusses the legal consequences of Crimea’s annexation by the Russian Federation upon the legal status of the peninsula’s Black Sea offshore (continental shelf and exclusive economic zone), with a focus on hydrocarbon exploration and production activities.
For the energy public debate in Romania, there are often two seemingly interchangeable terms – security and energy independence. The two concepts are different, however, and understanding the differences is very important
Romania's most important foreign energy policy project, the Nabucco gas pipeline, failed definitively in June 2013, when the competition for the transport of Azerbaijani gas to the EU in favour of the TAP (Trans Adriatic Pipeline) project.