4. Oil

Key data

(2018)

Domestic oil* production: 21.6 kb/d of shale oil from oil shale, +157% since 2008 Net-imports of oil*: -21.4 kb/d, +266% since 2008

Domestic oil products: no refining in the country

Net imports of oil products: 26.4 kb/d, +21% since 2008

Share of oil (2017): 4.0% of TPES and 0% electricity generation Total oil demand: 29.0 kb/d, 3% since 2008

Consumption by sector (2017)**: 1.2 Mt (transport 72.4%, commercial 11.1%, industry 10.8%, transformation/energy 4.9%, residential 0.8%)

*Includes conventional crude oil, condensates, natural gas liquids (NGLs) and unconventional oil.

**Consumption by sector data are presented in million tonnes (Mt) and exclude international marine bunkers.

Overview

In Estonia, in 2017, the share of oil in total primary energy supply (TPES) was 4%, down from 14% in 2007, which is the lowest share of oil in TPES among International Energy Agency (IEA) countries (the IEA average is 34%). However, oil accounts for over onethird of total final consumption (TFC) in Estonia. The level of oil consumption has been stable at around 1.1 million tonnes (Mt) over the last decade, mainly for the transport sector. The gap between TPES and TFC reflects the fact that Estonia’s production of unconventional crude oil is derived from the liquefaction of oil shale, which is accounted for in TPES as “coal and oil shale” (Figure 4.1).

Estonia has no conventional crude oil production, but does produce unconventional oil – shale oil from domestic oil shale liquefaction, with the production level more than doubling over the last decade. As there are no refineries in the country, Estonia exports the vast majority of this shale oil production and fully relies on imports to meet its oil product demand. Estonia has not only nominally reduced its oil import dependency by exporting more shale oil, but has also successfully diversified its oil product import sources. Estonia does not have indigenous biofuel production and is therefore reliant on imports.

With successful market reform, the Estonian oil market has become fully liberalised and competitive, albeit with some large players still dominating the market. Fuel prices in Estonia have remained almost the same since the last In-depth Review in 2013, with

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ENERGY SECURITY