Economic Review, Vol. 68 No. 2, 2017.
Professional paper
REPUBLIC OF CROATIA IN GLOBAL OIL WORLD
Gordana Sekulić
Dragan Kovačević
Vladislav Veselica
Damir Vrbić
Dorotea Čapo
Dominik Kovačević
Abstract
Crude oil had a significant influence on the development of both global and Croatian economies. The dynamic growth of production, refining and consumption of crude oil, especially in the 1970s and 1980s was followed by and influenced the significantly higher growth rates of the gross domestic product than those occurred during the last years. Major oil companies were the leaders of the economic development on the global level, while at the local level such leaders are smaller national companies, such as INA Plc. and JANAF Plc. in Croatia. Oil economy developed in turbulent conditions of crude oil market with constant oscillations of crude oil prices, through adjustments to the challenges of implementing new energy policies and measures with regard to climate changes, political crises, and others. Over the last years, a stagnation in crude oil production and consumption has been observed on the global level (4,2 -4,3 billion tons), with a decline being recorded in the developed countries, while higher growth rates have been noticed in China, India and the emerging Asian economies. The beginnings of crude oil (exploration and production) in Croatia dated back to the first half of the 19th century and the end of the 19th century and the beginning of the 20th century (refineries) respectively. The bloom of the Croatian oil economy during the 1970s and 1980s was marked by the crude oil production hitting a record high of 3,1 mil. tons (in 1981) in comparison with the present 613 thousand tons (in 2015) and refining of an all-time high amounting to 9,2 mil. tons (in 1979) as compared to the present 3,5 mil. tons. Croatia contributes with 0,145 pro mille in the global oil production and with 0,862 pro mille in the global oil consumption. Further development and globalisation of oil sector may occur through intensifying the activities on crude oil exploration and production both in Croatia and abroad, but also along with the refineries modernization and increase of share on both domestic and foreign markets. Crude oil transport followed the development of crude oil refining on the domestic market, and especially on the foreign markets of the countries of South-Eastern and Central Europe, with the highest transport of 9,7 mil. tons being achieved in 1990, as compared to 6,2 mil. tons in 2015, with the growth trend being observed owing to increase in transport for foreign refineries and their diversification of crude oil imports from the Omišalj direction. The diversification strategy directed towards storage of crude oil and petroleum products further supports the growth of oil companies and Croatian economy as well. The Croatian oil economy will still remain under the influence of volatile oil market characterised by: price volatility, global trend of reducing the petroleum products consumption, stricter regulations and quality standards, policies and measures for enhancing the security of supply, growing costs and investments together with pressures of reducing prices, growth trend of imports and competitiveness of petroleum products, diversification of supply sources and routes and other. Therefore, continuous adjustments are necessary, as well as prompt responses to challenges and development of new strategies for diversification and growth.
Keywords
crude oil; oil economy; Croatia; world
Hrčak ID:
182111
URI
Publication date:
25.5.2017.
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