Ledion Krisafi
TIRANA – This year has been a shock for the oil and minerals industry as has been for the other parts of the economy. In the global level demand for oil has decreased considerably, especially during the lockdown months, but the repercussions continue. Major oil and gas companies are shedding jobs in tens of thousands in expectation of a turn towards green energy in the future, also because of the Coronavirus pandemic, which has accelerated this process.
In Albania also the oil and gas industry has been affected considerably. The price of oil and gasoline has fallen, but not as much as in the world market, mostly because a considerable part of the price of oil in Albania are taxes. Nevertheless, even in Albania the covid-19 pandemic has had a considerable impact and is expected that this impact to continue even in the near future.
At the same time, the mining industry in Albania has also been affected. According to the latest INSTAT data, exports have decreased by 15.4% in the first 8 months of 2020. Exports of minerals, fossil fuels and energy have decreased by 3.4% in the first 8 months, being one of Albania’s main exports.
In this situation, the future of the oil, gas and mining industry is in doubt all over the world, including Albania. The turn towards green energy will be accelerated. During the pandemic, the sales of new bicycles in Tirana multiplied. These signs show that in the world as well as in Albania the future of oil and mineral industry is uncertain.
The industry needs to adapt to the changing circumstances. It needs to become more environmentally conscious and innovative in utilizing new technologies to decrease its carbon footprint.
The Extractive Industries Transparency Initiative (EITI) in Albania has been working for years to tackle these problems in the oil and minerals industry. It has pushed to create an investment-friendly environment in this industry, demanding more transparency from the companies and creating a better business environment.
EITI has the capacities to follow and recommend to the companies in this industry the next steps in the near future, in order to keep the pace of the changes happening in the biggest companies in the world. Without the consulting and the recommendations, the industry may be left behind and lose markets, money and consequently damaging the economy of Albania and its job market.
At the same time as the industry tries to adapt to the new changing circumstances, it will also need to be more public-friendly and the only way is to be more transparent. The public will need to know that the oil and minerals industry in Albania makes a huge contribution to the country’s economy, taxes and employment. Government revenues coming from this industry go for the benefit of Albania’s citizens.
This change of attitude resulting in greater transparency and accountability will help create a public debate about the role of the oil and minerals industry in the Albanian society and economy and at the same time, the future of this industry to be more sustainable and environment-friendly.
The future is more energy sustainable and environment-friendly and the Covid-19 pandemic is bringing the future very fast. A failure to adapt now, means a much bigger failure in the near future for the industry, the economy, the job market and the citizens.
