A nation rich in natural resources and energy independent can be a prosperous nation. However, the existence of resources and energy independence represent a necessary, but not sufficient condition for a nation’s development. Because energy and natural resources are mandatory conditions for countries aiming to develop, the most dynamic countries in contemporary world consider energy production and procurement and raw materials extraction, import and exploitation as national priorities, paying attention to possible excessive dependency on exports or imports. [Read more]
In Romania’s case, we can speak about two stages: before 1990, when internal extraction and processing were part of the economic strategy of the time, and after 1990 (that saw closure of mines considered inefficient, privatization, restructuring, etc.), with stakeholders permanently debating the ways of making the sector efficient, but failing to correlate this legitimate concern with a clear development strategy.
Energy and natural resources represent one of the pivotal fields of Romanian economy, in a continuous change after 1990. The analysis of specific indicators can give us a clear image of this field, but equally of the direct impact of economic and demographic evolutions on this sector. For instance, the increase in energy independence in recent years can be explained not only through an increase in energy efficiency, but also a decrease in consumption, in the context of population decline and industrial restructuring. The same phenomenon characterises water consumption in economy (with the added factor of dramatic decrease in agricultural activity). On the other hand, although Romania continues to export resources, it needs imports in periods of economic growth, which shows a lack of agility of the internal extraction.
Starting from the imperative of using energy and natural resources for development, the field is divided into two subfields: energy and natural resources. We have selected those indicators that are available and allow comparative analyses with EU countries in time; in this way, we can see Romania’s status quo in this field. This synthesis takes into consideration specific indicators for economic development, the factors impacting the environment being treated in a distinct field (Environment and sustainable development).
Energy in itself does not lead to development, but its use can support development through added efficiency, which propagates in economy, by generating employment, supporting well-being and reducing vulnerabilities, especially dependence on other countries. [Read more]
Romania’s primary production is currently approximately 70% of 1990 volumes. This process needs to be correlated with the drop in internal consumption (55.8% in 2015 versus 1990), demographic decline and an increase in the population’s concern for energy efficiency (the residential sector consumed in 2015 31% less energy than in 1990), industry reorganisation, restructuring and increased efficiency (industry consumed in 2015 just 25.55% of the energy used in 1990), the decline of the share of agriculture in economy (energy consumption in this sector was in 2015 41% of 1990 levels).
Romania’s energy mix has been constantly changing since 1990, the main changes being: the decrease in energy production from natural gas to 40% of 1990 quantity and 80% of 2000 quantity, and an increase in nuclear energy production by 113% in 2015 compared to 2000 and an increase of renewable energy by 44% in the same interval.
At the same time, Romania is one of the few countries that are almost energy independent (energy dependence in 2016: 17%, 5th place in the EU – only Norway, net energy exporter, Estonia, Denmark and Island are less energy dependent). This situation is favoured by the level of primary production, the decrease in consumption, as well as the increase in energy efficiency. At the same time, Romania follows the already visible trend of countries in the region, the constant decline in the number of jobs in this sector and an increase in the population’s energy expenses (now the same as EU average).
The subfield contains the following main indicators: energy dependency; gross inland consumption of energy and the structure of energy consumption; primary production of energy and its structure; household expenditure on energy; employees in mining, petroleum and gas extraction and energy production.
A nation’s capacity to transform the wealth of natural resources into well-being depends on a variety of factors and there have been numerous cases where countries rich in resources have not managed to efficiently use them for the general well-being. The conclusion is evident: having resources is not sufficient for a nation’s well-being. [Read more]
In 2016 in Romania, the value of mining and extraction from quarries grew by 23% compared to 2000, and the value added grew by 31, compared to 2000. During periods of increased production, national extraction cannot support internal consumption, which leads to imports. In fact, in recent years, imports of resources have generally been bigger than exports. Romania’s resource imports (volumes) in 2016 were higher than exports, as follows: imports of metal ores were 66% higher than exports, imports of non-metallic ores, 170% higher, and imports of fossil fuel, 150% higher. Exports of metallic ores were rather constant in the period 2000-2016, and the volume of non-metallic ores and fossil fuel fluctuated in the same period. The value of the specific processing, based on internal and imported resources, was constantly on the rise in this period, and so was the value added.
Compared to 1990, in Romania the forest area for wood supply dropped by 17.6% in 2015, which represents the highest decline in the region (in the EU, the area grew by approximately 2%, and in Hungary, for instance, it grew by 16.21%). This data explains the increase in the volume of national furniture production, 67.9% higher in 2017 than 2008.
The decrease in irrigated areas, the restructuring of the industrial sector and the demographic decline can be seen in the evolution of water resources used in economy (households included): in the period 200-2015, the use dropped in all countries in the region, with the figures for Romania plummeting (75.6%).
The subfield contains the following main indicators: exports and imports of metal ores, non-metallic minerals and fossil energy; extraction of metal ores, non-metallic minerals, and fossil energy; use of water in economy (including households); forest area.
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