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Market Study:
Project Coordinator: Calinescu Ramona
Calin Veghes Frunza Carmen
Giurca Ana
Antim Marko
Romania, with 22. ... Geographically, Romania is somewhat smaller than New York and Pennsylvania combined. Located in Southeastern Europe, Romania borders the Moldova, Ukraine, Hungary, Yugoslavia and Bulgaria; and in the southeast borders the Black Sea. ... Romania has a free trade agreement with the states of the European Free Trade Association (EFTA) and an association agreement with the European Union (EU). ... In 1993, Romania had its Most Favored Nation Status with the United States restored on a permanent basis. In 1994, Romania was the first Eastern European State to sign the NATO Partnership for Peace in Brussels.
History of Oil Development within our Country
Romania has a long history of oil and gas production. It was the first country to start producing oil commercially in 1857, two years before the US. Its substantial energy resources and booming energy sectors allowed surplus oil to be exported and initiated major economic development in the 1920s. Its oil reserves and refining capacity fuelled much of the Second World War. ... However, the 1973 oil embargo resulted in dramatic price increases. ...
However, it was of little consequence in Romania, where the good fortune of being largely self-sufficient in energy production allowed an almost business-as-usual approach. This prevented Romania from learning many of the important lessons that would be useful years later when Romania began its very own energy crisis. ...
Within a few years of the oil crisis, many nations had developed government-lead energy saving initiatives. ... As these national energy saving programmes got underway, Romania was concentrating on spending borrowed money on mass industrialisation and construction projects, and paid little attention to the rest of the worlds energy saving activities. Besides which, most energy saving projects were unjustifiable in Romania because energy costs were too cheap.
During the 1980s, a large proportion of Romanias refined oil products had to be exported in an attempt to repay all foreign debt. ...
In the early 1990s, as Romania directed itself towards a market economy, it became apparent that the energy demands of the 1980’s had been unsustainable. The ever-increasing oil and gas extraction rates had caused reservoir pressures to fall dramatically, reducing the countrys economically recoverable reserves. Two-thirds of the oil and one-quarter of the annual gas requirements now had to be imported placing a huge burden on foreign currency reserves. ...
In 1991 Romania established the first governmental body in Central and Eastern Europe dedicated to saving energy. ... The concept was to disseminate the results of these projects so that they could be replicated throughout Romania. ... projects
Presentation of Main Oil Products
There are three major forms of fossil fuels: coal, oil and natural gas. ...
The principal refined products produced by the two most important refineries Petrobrazi and Arpechim are:
· Motorfuels: leaded and unleaded gasoline, heavy fuel oil,jetfuel, Diesel oil (about 60%)
· Fuels: LPG, kerosene, heavy fuel oil, light liquid fuel, P, M, K, type distilled fuels for non-industrial use (about 28-30%). ...
Refined Product Production Rate
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Motor Gasoline 110 73 68 61 80 81 73 75 75 57
Jet Fuel 7 8 8 6 5 4 2 2 2 2
Kerosene 1 1 1 2 3 1 1 1 2 2
Distillate Fuel Oil 127 81 76 77 96 96 86 81 83 64
Residual Fuel Oil 156 101 90 73 65 58 47 41 39 36
Liquefied Petroleum Gases 8 8 8 8 9 9 9 8 10 9
Lubricants 7 6 5 5 4 4 4 3 3 0
Other * 69 39 19 40 35 46 47 53 52 58
Total Output 485 316 275 271 297 299 269 265 265 227
Refinery Fuel and Loss 24 12 11 17 11 12 10 10 10 9
Main Suppliers in Romania
Before 1989 – Own State’s Oil Company
With the largest petroleum reserves in Eastern Europe, Romania was a major oil producer and exporter throughout much of the twentieth century. The oil extraction industry, developed primarily by German, United States, British, and Dutch companies, was the forerunner of the countrys belated industrialization. In 1950 oil satisfied nearly half of total energy needs. Peak production was reached in 1976, gradually declining in subsequent years, as many of the countrys 200 oil fields began nearing depletion and discovery of new reserves waned. ... Despite an accelerated exploration program, with average drilling depths increasing to 8,000 to 10,000 meters, oil output declined from 308 barrels per day in 1976 to 227 in 1986.
Beginning in the late 1970s, Romania became one of only ten countries producing offshore oil-drilling rigs. ...
During the 1970s, Romania invested heavily in developing an outsized oil-refining industry just as domestic petroleum production was beginning to decline and the world market price for crude was skyrocketing. Some observers estimated that by 1980 the country was losing as much as US$900,000 per day by exporting oil products derived from imported crude. But because these products found a ready market in the West--they accounted for 40 percent of exports to the West in the late 1980s--Romania continued large-scale processing of imported crude to earn hard currency. ... Under the terms of a barter arrangement, Romania was to receive at least 5 million tons of Soviet crude annually during the 1986-90 period in exchange for oil-drilling equipment and food products. ... After it had begun importing gas from the Soviet Union in the mid-1970s, Romania obtained incrementally larger shipments; in 1986 it imported 2. ... For its participation in projects to develop Soviet gas resources, Romania was expected to receive shipments of at least 6 billion cubic meters annually after 1989. In addition, as payment for transit rights for a 200-kilometer gas pipeline across Dobruja to Bulgaria, Romania would be receiving an unspecified amount of Soviet gas for a twenty-five-year period.
As a conclusion, the oil market in Romania before 1989, was a monopoly market, with the only player, known today as S. ... and Other Private Companies
Romania extracts around 6 million tonnes of oil annually and its production is about to receive a major boost through the excavation of a recently discovered large-size oil deposit in the Black Sea that started in 1999.
Approximate Word count = 5225
Approximate Pages = 20.9
(250 words per page double spaced)
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