Oil industry slowdown, prices 30% lower in three years

Official data from the National Agency of Natural Resources show that the price has dropped with 30% in the past two years, from 1.2 million tons to 835,000 last year.

The strong drop has had significant consequences for the state finances.

Data show that the Ministry of Finances has lower revenues from the petroleum honorary tax.

If the government received 60 million USD in 2014, last year they took only 20 million.

The expectancies are that the oil production will be even lower this year since companies have lowered their investments.

Official data show that the oil production investments have dropped at a dramatic pace, from 300 million EUR that it was in 2014, to 60 million EUR last year, five times less.

Besides the unfavourable price in international markets, another factor that has influenced the oil industry is the conflict between the Bankers Petroleum and the Albanian government.

Last week, the Arbitration Court in Paris ruled for the Albanian government to pay Bankers 57 million USD, which, according to the court, the government has obtained them unrightfully through taxes.

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