“Since 1860, when oil production started in Romania, 5 million tons have been extracted on average per annum. This means 750 million tons so far. Multiplying this by 7 barrels per ton and $50 per barrel, this means over $200 billion. Deposits still hold around the same volume,” Mircescu told ZF Live.
The entrepreneur is thus triggering an alarm signal about the chances of small players in the oil and gas production field, over 90% dominated by two companies, Petrom and Romgaz.
On the other hand, the crude oil that is left is “hiding” at high depth or in places that are hard to access and further resource exploitation involves the use of new technologies and higher production costs.
Unlike large companies, smaller oil companies can afford focusing on marginal oil blocks, almost entirely used up, as they have lower fixed costs and a more flexible decisional structure and are under no pressure from shareholders to deliver profits and dividends.
Just like other small local players, such as Amroco Energy or Zeta Petroleum, Mircescu calls for already leased, but unused blocks to be put up for auction again.
In Mircescu’s opinion, small companies find it very hard to survive on the energy market in Romania as they have no support from the state, there are no normal laws for the functioning of the market.
“This is a market where the emergence of small players is not desired. There are interests that do not want this industry to go into the direction of a normal market,” showed Mircescu.
Another problem of the local market is the lack of managers in the case of small and middle-sized companies.
An engineer by training, Radu Mircescu set up Gasoil group in 2009 with the money he got from the sale of a previous business, Viking Profil, founded together with entrepreneur Marius Ghenea. In Gasoil, Mircescu owns 62% of stock. His partners are Cornel Marian, managing director of investment fund Oresa Ventures Romania, and Horia Manda, the manager of Axxess Capital on the local market.
(English version by Catalina Apostoiu)