engleski

Strategy guidelines for Croatian petroleum industry based on geopolitical risk assessment

For the last fifty years 79 oil and gas fields were discovered in Croatia with more than 460 million m3 of oil equivalent (OE), which sets petroleum industry as a very important part of Croatian economy. Proven oil and gas reserves were estimated to 198 million m3 OE. In the same period Croatia produced more than 155 million m3 OE. Today there are 43 oil and 13 gas fields. Until 70’ s domestic oil production was sufficient for satisfying entire Croatian demand in liquid fuels. The fact, that current domestic production meets only 20% of oil and around 50% of natural gas demand, implies the necessity for acceptable strategy implementation that will perceive domestic market demands along with global market conditions. Since only one company represents whole petroleum industry in Croatia, in global contemporary conditions the basic problem of Croatian petroleum industry represents compliance of small and medium petroleum companies to heavy business conditions on global market. This is consequence of petroleum companies' high sensibility to geopolitical risks. Therefore, precise evaluation of geopolitical risks in time and assessment of their impact to creation of company business strategy could be crucial for entire Croatian petroleum industry. Today petroleum industry represents strategically important part of Croatian economy with need for business expansion on markets of neighbor countries and recovering oil and natural gas reserves from countries that have higher potential in reserves exploration but also higher political instabilities. At the same time it is pressurized by necessity of business rationalization and improvement of profitability. Therefore, geopolitical risk assessment is of great importance for creation of Croatian petroleum industry strategic guidelines that should show a way of meeting domestic hydrocarbon consumption along with achieving desirable business position especially on regional market.

energy; economics and political issues; hydrocarbons; resources management

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