Oil and gas projects in Italy, hydrocarbon projects will receive a new boost with measures aimed at expediting permits, increasing domestic production, and reducing dependence on fossil fuel imports, the initiative, announced by Prime Minister Giorgia Meloni, seeks to simplify the procedures for obtaining drilling licenses. The Italian government intends to prevent projects considered strategic for energy security from languishing for years awaiting administrative decisions.
Italy currently produces around 29 million barrels of crude oil per year, mainly in Basilicata, one of the main producing regions in the south of the country, in addition to approximately 3 billion cubic meters of natural gas annually despite this, domestic production still only covers a portion of Italy’s energy needs. The government believes there is room to make better use of available resources and partially reduce dependence on foreign supplies.
Oil and gas projects will receive faster permits
One of the main new features will be the possibility of appointing special commissioners when local authorities fail to respond to requests within the established deadlines, according to Energy Minister Gilberto Pichetto Fratin, the measure aims to prevent energy security procedures from being stalled for extended periods due to delays or a lack of administrative decisions.
The Government had previously evaluated similar mechanisms to expedite projects related to the renewable energies, however, increasing pressure on energy markets has led Rome to extend this approach to initiatives aimed at increasing domestic fossil fuel production. In doing so, Italy seeks to shorten some of the bureaucratic processes that can delay the start of new exploration and production operations for years.
Energy security gains importance in the Italian strategy
Furthermore, the decision comes in a context marked by problems in the international supply of oil and liquefied natural gas through the Strait of Hormuz before the conflict between the United States and Iran, this shipping route handled approximately one-fifth of global oil and liquefied natural gas flows. The disruptions since then have heightened concerns about the stability of energy supplies.
Italy is particularly sensitive to any disruptions in the natural gas market, this fuel is used to generate almost half of the country’s electricity, a proportion that makes the Italian market one of the most gas-dependent within the European Union. Increasing oil and gas production in Italy is therefore seen as one of the tools the government is using to reduce its exposure to potential external disruptions and limit the effects of energy market volatility. While this strategy does not eliminate dependence on imports, it would allow for an expansion of domestic capacity available in the face of increased international tension.
Italy faces a hefty energy import bill
The cost of imports is also putting pressure on the country’s finances, the Italian fuel producers’ association UNEM estimated that Italy could spend close to 60 billion euros in energy imports during 2026 if that forecast materializes, the disbursement would represent between 8 to 9 billion euros more than in 2025, while the Government is simultaneously trying to contain the impact of energy prices on consumers and businesses.
To alleviate some of that pressure, Meloni’s government introduced a temporary reduction in excise taxes on fuels in March, a measure that was later extended, so far, these tax reductions and other relief measures for the transport sector have resulted in a cost exceeding 2.6 billion euros for public accounts.
The increase in domestic production is thus presented not only as a matter of security of supply, but also as a tool to limit part of the country’s economic exposure to international energy markets.
Eni, Shell and TotalEnergies operate in the Italian sector
Meanwhile, increased exploration and production activity could open up new opportunities for companies already involved in the Italian hydrocarbon sector; among the main operators are One, a company controlled by the Italian state, as well as international groups such as Shell and TotalEnergies.
Implementing faster licensing procedures could reduce the administrative timelines associated with new oil and gas projects and expedite initiatives currently at various stages of authorization, however, the magnitude of the production increase will depend on several factors, including the availability of commercially viable resources, final authorizations, and the capacity of companies to execute projects that move forward under the new system.
Source: Energy Now
Photo: Shutterstock
