Abstract
Overall European oil production is projected to plateau at around 6 million barrels per day in the next few years and to decline thereafter to around 2.3 million barrels per day in 2030. On the other hand, in 2011 total oil production in the European region reached 4.273 million barrels per day and oil consumption of 15.085 million barrels per day. Due to this huge difference between the production and consumption of oil, Europe was forced to import 10.812 million barrels per day in 2011. The total crude oil refinery capacity in 2011 was 16.187 million barrels per day, more than enough to process all the crude oil that the region needed. If the status quo prevails, then the EU may need to import an additional 2.8 million barrels per day by 2012–2013. This represents a rise of 29 % in imported oil over a 6 year period that needs to be set against a backdrop of falling production in many oil exporting countries.
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- 1.
The first well was drilled in Ploiesti in Romania. It was followed by a well drilled in the United States in 1859, in Italy in 1860, in Canada in 1862, and in Russia in 1863. Other sources considered that the first well drilled was in the United States in 1859.
- 2.
Oil remains the world’s leading fuel at 33.6 % of global energy consumption, but oil continued to lose market share for the 11th consecutive year.
- 3.
Installations where oil and condensates are processed into marketable products with defined specifications such as gasoline, diesel or feedstock for the petrochemical industry (these products are chemical products where the main feedstock is hydrocarbons. Examples are plastics, fertilizer, and a wide range of industrial chemicals). Refineries off-site such as tank storage and distribution terminals are included in this segment, or may be part of a separate distribution operation. The economic success of a modern refinery depends on its ability to accept almost any available type of crude oil. With a variety of processes such as cracking, reforming, additives, and blending, it can provide product in quantity and quality to meet market demand at premium prices.
- 4.
Considering crude proven oil reserves in Venezuela of around 296 billion barrels confirmed in 2011.
- 5.
Europe is running out of indigenous fossil fuels at a time when fossil fuel prices are high, as is the volatility of those prices.
- 6.
Most of Europe’s oil supply comes from the Middle East.
- 7.
The Norwegian government has placed a moratorium on exploration in these areas until it completes an environmental impact assessment. In the longer term, the government aims to strike a balance between encouraging oil companies to extend the life of existing fields and gradually opening up access to new ones. The aim is to prolong offshore production and allow time for development of production technology that is less environmentally harmful.
- 8.
According to EIA 2012 report, the participation of oil-fired power plants in the world generation of electricity was in 2010 around 5 %.
- 9.
There is no report on the import and export of crude and refined oil products from Bulgaria in 2011 and 2012.
- 10.
BMI assume an OPEC basket crude oil price for 2011 of US$101.90 per barrel, falling to US$99.40 barrel in 2012. Global GDP in 2011 is forecast at 3.2 %, down from 4.3 % in 2010, reflecting slowing growth in China, a faltering recovery in the USA and a worsening Eurozone debt crisis. For 2012, growth is put at 3.6 %.
- 11.
In 2011, production in the Danish part of the North Sea derived from a total of 278 active production wells, of which 199 were oil wells and 79 were gas wells. In addition, 109 active water-injection wells and 6 gas-injection wells contributed to production.
- 12.
In 2011, production was suspended in some fields due to safety or environmental issues. Such shut downs may become more frequent in future in step with the increasing age and obsolescence of platforms and pipelines. Summer shut downs have been planned in recent years on several platforms in order to undertake overhauls and maintenance of wells and offshore installations to prevent unplanned shut downs.
- 13.
Energy dependency shows the extent to which an economy relies upon imports in order to meet its energy needs. The indicator is calculated as net imports divided by the sum of gross inland energy consumption plus bunkers.
- 14.
France, Germany, and Italy have an oil-sharing agreement to allow each other to purchase their strategic oil reserves in the event of an emergency.
- 15.
Germany is divided into several prospective areas, which are the foreland of the Alps, but the main centers of oil production and reserves are located in North Germany.
- 16.
Before the war in Libya in 2011, Germany oil import from this country reached 12 %.
- 17.
Oil is produced from the Prinos offshore oil field in the Kavala Gulf in the Northern Aegean Sea. In 2012, the domestic oil production was 7,500 barrels per day.
- 18.
As a result of the EU sanctions against Iran the import of crude oil from this country stopped in 2013.
- 19.
Territorial disputes with neighboring Turkey prevent Athens from looking for oil in the East part of the country.
- 20.
However, most of the tests were badly managed or carried out at the wrong locations. The country spends between €10 and €12 billion per year on oil imports, about 5 % of its gross domestic product, and this level of expenditure cannot be maintained under the present economic situation.
- 21.
In the summer of 2008, the EC closed the investigation initiated against Hungary in 2005 in the subject of the potential state aid nature of long-term power purchase agreements (PPA). In the decision closing the investigation, the EC requested the Hungarian authorities to end all these State aids and have the affected power plants obliged to pay back the illegal State aids. These PPAs were concluded in the period from 1995 to 2001, and accounting for more than 60 % of the Hungarian electricity production, hindered competition to evolve. The Parliament passed the Act 70 of 2008 on Certain Issues in Association with Electricity on 10 November 2008, which provide for ending PPAs by the deadline 31 December 2008 and for the method of the determination of State aids to be paid back. In 2009, the government had negotiations with the affected parties and the EC (Hungarian Annual report to the EC 2010).
- 22.
Its main goal is to create a new transportation corridor for crude oil from the Caspian Sea region (Kazakhstan and Azerbaijan) to Europe. Caspian crude oil could thus be supplied to Poland and further to other consumer countries via Naftoport in Gdansk.
- 23.
As result of the EU sanctions against Iran, no EU country could import crude and oil refined products from Iran after 2012.
- 24.
Out of this installed capacity, 3 % correspond to oil power plants.
- 25.
Others considered that the first production of oil was carried out in Pennsylvania in the United States.
- 26.
Relevant legislation in Romania is as follows: Energy Law (2007); Law on Electricity (2007); Law on Energy Efficiency (2006); National Strategy for Energy Efficiency 2007–2020 (2007); Government Decision Regarding the Strategy for the Promotion of Renewable Sources of Energy (2003). Government Decision Regarding the Promotion of Electricity Produced from RES (2004); and the South-East European Energy Community Treat (2006).
- 27.
The oil reserves dropped from 956 million barrels in 2006 to 600 million in 2011, a decrease of 37.3 %.
- 28.
The peak oil production was reached in 1976 with 290,000 barrels per day.
- 29.
It is expected that the participation of oil in the generation of electricity in the energy mix of the country continue diminishing in the coming years.
- 30.
The aim of previous energy policy adopted in 2003 was “to maximize utilization efficiency of natural energy resources and energy sector potential for the growth of economy and population living standards”. The new energy policy, in principle, has the same objective.
- 31.
It is important to stress that the main type of fuel used in Russia for the generation of electricity is natural gas. In 2009, the share of natural gas in the Russian energy equation was 56.2 %. Oil accounted for only 18.3 % of the country’s energy consumption, coal for 14.4 %, nuclear energy for 5.3 %, and hydro power for 5.6 %.
- 32.
On January 1, 2011 Russia officially launched commercial supply of its ESPO crude oil blend to China via a new offshoot pipeline from the East Siberia-Pacific Ocean. The shipment followed an agreement signed in February 2009 between ROSNEFT, pipeline-operator TRANSNEFT, China National Petroleum Corporation, and China Development Bank. Under the agreement, ROSNEFT agreed to supply 300,000 barrels per day of crude oil over 20 years. In return, China Development Bank agreed to provide ROSNEFT and TRANSNEFT with 20 year loans of US$15 billion and US$10 billion, respectively.
- 33.
According to EIA sources, the crude oil reserves were estimated at 60 billion barrels or 3.9 % of the world total.
- 34.
Initially, the core of the industry was in the Volga-Urals region located in the Southern part of European Russia. As its production peaked during the 1970s, the focus shifted to West Siberia, which has remained the heartland of Russia’s crude oil business. However, this region’s production has been declining in the past few years, while major Russian oil producers have gradually stepped up their efforts to look for opportunities in new regions of the Russian Federation—East Siberia, the Far East, and the Arctic.
- 35.
Approximately 14 billion barrels of crude oil exist on Sakhalin Island in the far Eastern region of the country.
- 36.
More specifically from Priobskoye, Prirazlomnoye, Mamontovskoye, Malobalykskoye, and Surgut group of oil fields. The Sakhalin group of oil fields in the Far East is expected to contribute to most of Russia’s crude oil production in the near-term. According to EIA sources, in the longer-term, untapped crude oil reserves in Eastern Siberia, the Caspian Sea, and Sakhalin Island are expected to play a larger role in the production of crude oil in Russia in the future.
- 37.
According to EIA sources, in 2008 the electricity installed capacity was 224.2 million kWh. In 2011, this capacity reached 231.647 million kWh.
- 38.
According to EIA sources, there are eight separate regional power systems in the Russian electricity sector, seven of which are connected to an integrated power system. These systems are: Northwest, Center, South, Volga, Urals, Western Siberia, Siberia, and Far East. The Far East region is the only one not connected to an integrated power system. Federal Grid Company (FGC), which is more than 70 % owned by the Russian government, controls most of the transmission and distribution in Russia. The grid comprises almost 2 million miles of power lines, 160,600 km of which are high-voltage cables over 220 kV.
- 39.
During the period 2008–2012, Russia increased its thermal generating capacities in 37.85 million kW.
- 40.
Russia is one of the top producers and consumers of electric power in the world.
- 41.
Natural gas would be the main input fuel for electricity generation with a share of 39 %, followed by nuclear (24 %), coal (20 %), and hydro (15 %). Electricity generation from renewables is expected to increase robustly at an average annual growth rate of 7.4 % for the next 28 years; despite this increase the share in electricity generation would remain relatively small at 2 % in 2030.
- 42.
After growing significantly up until 2005, crude oil demand started to decline in a significantly manner and it is expected that this trend will continue during the coming years, particularly for the generation of electricity.
- 43.
Most crude oil imports come from Russia.
- 44.
In 1970, oil accounted for over 75 % of Swedish energy supply; by 2009, this figure was just 32 %, a decrease of 43 %. The main reason for this significantly decrease is the declining in the use of oil for residential heating.
- 45.
Production at Schoonebeek was stopped in 1996, having produced only a quarter of the fields estimated reserves, as the crude oil stream was considered too viscous for production to be economically viable. Enhanced crude oil recovery techniques such as steam injection and horizontal drilling have reversed this, and in January 2011 the field was officially reopened for production. Production from the field is expected to average some 14,000 barrels per day over the coming 25 years, with all amounts to be exported by rail to the refinery in Lingen, Germany.
- 46.
The policy to this end is contained in the Dutch government’s Energy Report 2005.
- 47.
Between 2000 and 2008, the consumption of electricity was higher that the generation of electricity forcing the government to import electricity to satisfy the demand. After 2008, this situation changed and the country generated more electricity that it consumed. However, this situation could change once again in the future, if the government does not construct new power plants or increase the import of electricity from other countries.
- 48.
Most of the UK crude oil grades are light and sweet (30–40° API), which generally makes them attractive to foreign buyers.
- 49.
For more information on this subject see Morales Pedraza (2012).
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Morales Pedraza, J. (2015). The Role of Oil in the Regional Electricity Generation. In: Electrical Energy Generation in Europe. Springer, Cham. https://doi.org/10.1007/978-3-319-08401-5_2
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