Italy accelerates oil and gas projects to ensure energy security

Italy took measures on Thursday to boost 'domestic oil production and reduce dependency on fossil fuel imports, said Prime Minister Giorgia Meloni.

According to official statistics, Italy produces around 29 million barrels per year of crude oil, mostly in the southern region Basilicata. It also produces approximately 3 billion cubic meters of natural gas. This is only a fraction of what it needs for fossil fuels.

Meloni, in a video after a cabinet session, said: "It makes no sense to import energy when we can produce it ourselves here in Italy."

In order to speed up the permitting process, the government announced that it would appoint'special commissions' in the event local authorities failed to make decisions within the required timeframe.

"We have to deal with a?issue which cannot be put off any longer: we can't allow procedures, which are crucial for the energy security of our country, to be stalled indefinitely because no decisions have been made," said Energy Minister Gilberto pichetto fratin.

After the U.S. - Iran war pushed energy prices up, the government considered appointing a special commission to accelerate renewable energy projects. However, it decided to increase fossil fuel production.

Conflict has caused disruptions in the Strait of Hormuz. Before the war, the Strait of Hormuz carried around a fifth of the world's oil supplies and liquefied gas.

Data showed that Italy relies heavily on natural gas, which produces almost half its electricity. This is the highest percentage in the European Union.

Meloni’s government, in an effort to lower fuel prices, introduced a temporary reduction in excise duty in March. The measure has been?extended multiple times, including Thursday.

Tax breaks for truckers included, the tax relief cost the state over EUR 2,6 billion ($ 3,02 billion).

In June, the national fuel producers association UNEM stated that Italy was expected to spend nearly EUR60 billion on energy imports this year. This is up EUR8 billion or EUR9 billion from 2015.

Shell and TotalEnergies are active in the hydrocarbons sector of Italy, as is state-controlled Eni.

(source: Reuters)