Annual Gas

1
Annual Gas Oil Forum 2007 BMG Petroleum
ClubFinding Romanias Place in the EU Energy
Market

• Barry Kolodkin
• Growth Strategy Consulting SRL
• Bucharest, Romania
• www.easteurstrategy.com
• 14 June 2007

2
Time of Uncertainty in Europe

• Price fluctuations
• Geopolitics
• Iraq
• Iran
• Venezuela
• EU-Russian energy relations
• Expropriations
• Ecuador
• Russia
• Will Nabucco happen?
• Oil pipelines
• Climate change

Is Europes energy supply secure?
Is nuclear energy safe?
3
Not Without Energy

• Natural gas reserves
• 34 Romania 111,100,000,000 cubic feet  
• Oil reserves
• 38 Romania
• 1,055,000,000 barrels 
• Coal reserves
• 1 Romania 157,010 million tons
• Many think US has most
• Source Nationmaster Statistics Online,
  www.nationmaster.com

4
Romanian Issues

• Modernization of refineries
• Petrom shutdown
• Capital needed
• Privatization of energy distribution companies
• Affordable pricing for consumers
• Pipelines
• Capability to support EU energy policy

5
EU Provide Answers??
6
EU Energy Policy

• Single EU energy market
• More competition
• Greater distribution beyond national borders
• Reduce greenhouse gases
• Improve energy efficiency
• More renewable energy sources
• More biofuels

7
One-for-All and All-for-One?
8
What Do We Want Lower Prices
9
Preparing for the Future

• Modernization of existing facilities
• Maximization of structural funds
• Continued growth of large Romanian companies
  beyond our borders
• Rompetrol, Petrom
• Integration with the EU Energy Policy
• Is there another choice?
• A Romanian energy industry identity

10
Investment Opportunities

• Privatizations
• Infrastructure
• Donor money
• More companies and more shares on the capital
  markets
• Foreign markets
• BVB
• Clean energy opportunities
• Biofuels

Assuming oil prices remain high, there will be
investment capital available
In 2006, the European Commission decided to
establish two multi-beneficiary programs on
energy efficiency, together with the Council of
Europe Development Bank in co-operation with
Kreditanstalt für Wiederaufbau and EIB.