I. Reserves of energy resources
Ukraine was one of the world’s first oil-drillers. About 375 million tons of oil and liquefied natural gas have been produced since industrial exploitation. About 85 million tons have been mined in the past 20 years. The total reserves of petroleum resources in Ukraine are 1.041 billion tons, including 705 million tons of petroleum and 366 million tons of liquefied natural gas. It is mainly distributed in three major oil and gas enrichment areas: east, west and south. The eastern oil and gas belt accounts for 61 percent of Ukraine’s oil reserves. 205 oil fields have been developed in the region, 180 of which are owned by the state. The main oil fields are Lelyakivske, Hnidyntsivske, Hlynsko-Rozbyshevske and so on. The western oil and gas belt is mainly located in the Outer Carpathian region, including Borslavskoe, DOLynske and other oil fields. The southern oil and gas belt is mainly located in the west and north of the Black Sea, the north of the Sea of Azov, Crimea, and the territorial sea of Ukraine in the black Sea and the Sea of Azov. A total of 39 oil and gas fields have been discovered in this area, including 10 oil fields. In the eastern oil-gas belt, the petroleum density is 825-892 kg/m3, and the content of kerosene is 0.01-5.4%, sulfur is 0.03-0.79%, gasoline is 9-34%, and diesel is 26-39%. The density of oil in the western oil and gas belt is 818-856 kg/m3, with a content of 6-11% kerosene, 0.23-0.79% sulfur, 21-30% gasoline and 23-32% diesel.
Ii. Production and consumption
In 2013, Ukraine extracted 3.167 million tons of oil, imported 849,000 tons, exported 360,000 tons, and consumed 4.063 million tons of refinery.
Energy policies and regulations
The main laws and regulations in the field of oil and gas are: Ukrainian Oil and Gas Law No. 2665-3 of July 12, 2011, Ukrainian Pipeline Transport Law No. 192-96 of May 15, 1996, Ukrainian Alternative Energy Law No. 1391-14 of January 14, 2000, Ukrainian Gas Market Operation Principle Law No. 2467-6 of July 8, 2010. The main laws and regulations in the coal field are: Ukrainian Mining Law No. 1127-14 dated October 6, 1999, Ukrainian Law on Improving the Labor treatment of miners dated September 2, 2008, and Coalbed methane Law No. 1392-6 dated May 21, 2009. The main laws in the field of electricity are: Ukrainian Law No. 74/94 of July 1, 1994 on energy conservation, Ukrainian Law No. 575/97 of October 16, 1997 on electricity, Ukrainian Law No. 2633-4 of June 2, 2005 on Heat supply, Law No. 663-7 of October 24, 2013 on operating Principles of Ukrainian Electricity Market.
Ukraine’s oil and gas companies are suffering from heavy losses and lack of investment and exploration in the oil and gas sector. Ukrgo is Ukraine’s largest state-owned energy company, pumping 90 percent of the country’s oil and gas. However, the company has suffered serious losses in recent years, including 17.957 billion hryvna in 2013 and 85,044 billion hryvna in 2014. The financial deficit of Ukrainian oil and gas Company has become a heavy burden on the Ukrainian state budget.
The drop in international oil and gas prices has put existing energy cooperation projects on hold. Royal Dutch Shell has decided to pull out of a shale gas project in Ukraine due to falling international oil and gas prices, which have made it less economical to explore and produce energy resources.
Post time: Feb-08-2022