If you got a question, look no further.
We post the most common questions
in our FAQ section.
Please fill in the form below to receive a Free Sample of the Report.
BMI View: Italy's oil and gas sector will continue to suffer from a gradual
depletion of its hydrocarbon reserves and the rapid downsizing of the country's
ailing refining sector. While an active exploration scene and a gradually
improving regulatory environment are positive signs, we believe these
improvements will take some years to garner more substantial industry changes.
This is particularly the case in the context of low oil and gas prices over the
-Italy's exploration has benefited from an accelerated licensing and drilling
approval process on licences, which is part of the Italian government's energy
plan in 2013. The National Energy Strategy is now starting to bear fruit with
several exploration and production permits approved since its implementation.
Drilling activity has accelerated as a result. Most recently, Sound Energy was
granted drilling permission for its Badile prospect - due to be drilled in 2016
- highlighting that interest in exploration remains in spite of the low oil
-The reintroduction by the 2016 Budget Law of the ban on exploration and
production activity within 12 nautical miles of the Italian coast will stem some
of the interest for offshore exploration. The lack of policy consistency also
creates an uncertain regulatory environment for the industry. Nevertheless, the
April 2016 referendum on banning renewals of offshore licenses failed to reach
the necessary turnout, meaning existing production sites offshore within 12
miles of the coast will continue to produce until they reach depletion. However,
new drilling concessions are no longer being handed out.
-Italy's oil production is expected to receive a significant boost from the
Tempa Rossa field, which is set to come online in late 2018. Nonetheless, this
will not suffice to achieve the government's goal of doubling oil production by
2020. Rapidly declining reserves are expected to push oil output gradually lower
in the post-2020 period.
-A deteriorating downstream sector in Italy, as elsewhere in Europe, has seen
large refining capacity and refined products production cuts over the past
decade. Further cuts are to be expected, given continued capacity oversupply and
weak demand growth.