1. Rudarsko-geološko-naftni fakultet PRODUCTION AND PROCESSING OF HYDROCARBONS IN CROATIA (2000-2013) Dr. Josipa Velić, Full Prof. Dr. Tomislav Malvić,Assoc. Prof.

2. Rudarsko-geološko-naftni fakultet Fig. 1: Oil and gas fields in Croatian part of Pannonian Basin System (Velić, 2007) 1. General facts The Croatian hydrocarbon fields are located in two hydrocarbon geological regional systems: (a)Croatian part of the Pannonian Basin System (CPBS; Fig. 1), (b)Croatian Northern Adriatic part of the Po Depression (CNAP; Fig. 2).

3. Rudarsko-geološko-naftni fakultet Fig. 2: Gas fields in Adriatic offshore (Velić, 2007)

4. Rudarsko-geološko-naftni fakultet Fig. 3: Proven vs. produced volumes of oil and condensate (2000-2014) The ratio between produced vs. proven volumes (OIL and CONDENSATE) is given on Fig. 3 as annual report (2000- 2014). It is clear that proven reserves had been slighlty Increased, when production declined. 2. Oil and condensate

5. Rudarsko-geološko-naftni fakultet Fig. 4: Proven reserves of oil and condensate (2000-2014) Oil vs. condensate proven reserves are given on Fig. 4. It is clear trend of oil domination but also increasing oil/condensate ration from almost 2/1 to more than 6/1. Reasons: (a)Faster depletion of condensate; (b)Report system.

6. Rudarsko-geološko-naftni fakultet Fig. 5: Produced volumes of oil and codensate (2000-2014) However (Fig. 5) does not follow such trend. Oil/condensate production ratio remained almost same about 3/1 through entire period. Reason: (a) Reserve report system.

7. Rudarsko-geološko-naftni fakultet Fig. 6: Proven reserves and produced volumes of natural gas (2000-2014) 3. Natural gas The ratio gas reserves/production (Fig. 6) is constantly declined to about 10/1. Reasons: (a)There is no new reservoirs; (b)Reserve report system.

8. Rudarsko-geološko-naftni fakultet Fig. 7: Ratio of natural gas recovered in CPBS and CNAP from 2000 to 2013 (Kišić, 2015) It is visible (Fig. 7) major changes in gas production ratio: (a) In 2000 as domination of CPBS; (b) In 2010 slight domination of CNAP; (c) In 2013 about 50:50 between CPBS and CNAP. Reasons: (a)Size of reservoirs; (b)Lithologies and production rates.

9. Rudarsko-geološko-naftni fakultet Fig. 8: Produced vs. proven reserves of oil and condensate(B/A) and imported volumes vs. total consumption of crude oil (C/D) from 2000 to 2014 4. Domestic vs. imported hydrocarbons volumes in Croatia Fig. 8 trend: (a)Production declines regarding total reserves (about 50%); (b) Import remaines almost constant (about 80% needs). Reasons: 1.Keeping long-term recoverable reserves; 2.Reserve system reporting; 3.Low total recoverable volumes. No available data about import

10. Rudarsko-geološko-naftni fakultet Fig. 9: Produced vs. proven reserves of gas (B/A) and imported volumes vs. total consumption of gas (C/D) from 2000 to 2014 Regarding gas (Fig. 9): (a)Production vs. reserves grow; (b)Import has beenincreased up to 45%. Reason: (1)Need for gas increased (replacement of energy sources); No available data about import

11. Rudarsko-geološko-naftni fakultet Fig. 10: Total consumption and imported volumes of crude oil (2000-2014) 4. Import vs. consumption in Croatia Ratio import vs. consumption remains almost the same (Fig. 10) although volumes varied. Reason: (1)Contry energy policy remains in the last 2 decades almost the same; (2)There is no decision among: (a) new HC reserves, (b) renevable domination, (c) coal, (d) import domination. No available data

12. Rudarsko-geološko-naftni fakultet Fig. 11: Ratio of domestic production and imported volumes of oil in Croatia from 2000 to 2013 (Kišić, 2015) During 2000-2013 productin fullfilled only about 20% of needs (Fig. 11).

13. Rudarsko-geološko-naftni fakultet Fig. 12: Total consumption and imported volumes of natural gas (2000 to 2014) Opposite to oil, gas import is lesser than producing (Fig. 12). No available data

14. Rudarsko-geološko-naftni fakultet Fig. 13: Ratio of domestic production and imported volumes of natural gas 2000-2013 (Kišić, 2015) The same trend of such domination (domestic gas vs. Imported) is clearly seen at Fig. 13.

15. Rudarsko-geološko-naftni fakultet Fig. 14: Petroleum refinery products in Croatia from 2000 to 2013 in % (Kišić, 2015) 5. Processing (refinery) products in Croatia In processing there is large omination (about 80%) of (Fig. 14): (a)gasoline, (b)diesel and (c)fuel oil.

16. Rudarsko-geološko-naftni fakultet Fig. 15: The consumption of oil products per sectors in Croatia from 2000 to 2013 (Kišić, 2015) The most of petroleum products are used in transport (Fig. 15).

17. Rudarsko-geološko-naftni fakultet Fig. 16: The consumption of natural gas per sectors 2000-2013 (Kišić, 2015) The most of gas is consumed in energy transformation (Fig. 16).

18. Rudarsko-geološko-naftni fakultet 1. The Republic of Croatia has a long history in hydrocarbon exploration, recovering and processing. 2. Currently around 60% of the needs for gas and 20% of the needs for oil are covered by local production. 3. Production in Croatia declines, and in regards to expectations of increasing demand in the future, it will become necessary to import larger quantities or discover new reservoirs. 4. In the Croatian consumption balance sheet of primary energy, oil and petroleum products make up the largest share. That should certainly not change significantly in the following few decades. 5. Only changes in the structure of petroleum products consumption are expected, with natural gas consumption shares on the rise. 6. In regards to this state of affairs, Croatia should decrease its energy dependence on imported energy. It is necessary to construct an efficient energy infrastructure, which would guarantee the safety of supply, for which surely there are numerous solutions. 6. Conclusions

19. Rudarsko-geološko-naftni fakultet 7. Mention earlier, producing of hydrocarbons will continue to decline due to reservoirs depletion, but discovering of new reservoirs could slow that process. 8. The Croatian part of the Pannonian Basin System is a well-expored territory, however so-called residual hydrocarbons, by-passed oil and satellite reservoirs are supposed to exist, what is endorsed by numerous conducted researches. 9. In the Northern Adriatic offshore additional reserves of natural gas can also be expected, especially in parts that were not explored thoroughly. 10. In order for our refineries to operate successfully, they must meet the demands of a constantly changing market and asking for higher quality. They are in the process of technological restructuring, which should accomplish an increase in product quality and market price reflecting changes in the structure of petroleum product consumption. It is also important to ensure diversity of import routes and storage capabilities of oil and natural gas, to ensure safety of delivery in conditions of uncertainty. 11. Croatia can withstand the challenges of energy dependency by improving the efficiency of energy use, as well as using alternative forms of energy such as renewable sources, which should increase in importance in total consumption.