Energy Employers’ Federation (FPE): One billion euros invested in onshore oil and gas exploration and production would contribute 8.9 billion euros to the Romanian economy and could secure over 43,000 jobs for a decade

One billion euros invested in the Romanian oil and gas sector, in the onshore upstream exploration and production segment, could add 5.8 billion euros to Romania’s gross domestic product (GDP) and bring a 3.1 billion euro increase in contributions to the state budget over a period of about 10 years, transforming the sector into a more important contributor to the country’s economic growth, shows a study conducted by Deloitte Romania at the request of the Energy Employers’ Federation (FPE). Also, according to the analysis, such an investment could create and preserve approximately 43,500 jobs on the local market.

The study was conducted based on analysis models using the most recent input-output indicators from the profile table published by Eurostat for Romania (2020). The figures indicated measure the direct and indirect impact (industry-specific activities), as well as the induced impact of the investment (stimulation of consumption and other market effects), and have a reference interval of 11 years, i.e. one year for the construction and operationalization of the infrastructure related to the investment and ten years of production.

The magnitude of the estimated effects of such an investment is given by the special status of the oil and gas sector in our country, from the perspective of the added value generated and from that of the strong interdependencies with most of the essential sectors of the local market, explains the study. Romania is the largest natural gas producer in Central and Eastern Europe and the second in the European Union and remains among the top oil producers on the continent, and additional investments in the sector would contribute to strengthening the country’s energy independence in a period marked by growing pressures on the European market in this field.

With growth potential confirmed by attracting some of the most powerful foreign investors, the exploration and production segment of the oil and gas sector is an important contributor to the state budget and a facilitator of economic modernization and technological innovation.

“With a history of over 160 years, the exploitation of oil and natural gas deposits covers a significant part of the energy transition needs, while ensuring the supply of reliable and stable energy crucial for sustained economic growth and for the development of Romanian industry in the new European context. Domestic oil and gas production reduces Romania’s dependence on imported energy and makes a significant contribution to national and regional energy security. The sector contributes significantly to the state budget through general taxes and duties as well as through a sum of specific taxes applied.

But I particularly note here the considerable multiplication factor of each euro invested by the oil and gas sector: an investment of EUR 1 billion in onshore oil and gas production generates an economic impact of almost EUR 9 billion, which we find both in GDP and in contributions to the Romanian state budget.”, said Daniel Apostol, General Director, Energy Employers’ Federation.