RAG (Rohöl-Aufsuchungs Aktiengesellschaft) celebrates 75 years of business success
01.02.2011 | Pressrelease
75 years - supplying energy from the depth of the ground
- For decades, RAG has made a major contribution to secure Austria's energy supply
- From doing pioneer work in Austrian crude oil production to one of the largest gas storage operators in Europe
- Outstanding employee expertise and commitment, innovative strength and respectable ownership structure
Vienna (15th October 2010). It is an eventful history that RAG, Austria's oldest and most traditional oil and gas exploration and production company, can look back on today. While the first decades were marked by global political events determining the development of RAG, more recent years were characterised primarily by the dynamic thrust, innovative strength and the capacity to explore and utilise new business opportunities, all of which against the background of oil price development and the rise of natural gas to become the second most important energy source.
„For many decades, RAG has made a substantial contribution to securing Austria's supply with crude oil and natural gas, and has become a major regional employer with a high impact on the country's economy. We believe it is our mission to ensure efficient and responsible use of precious natural resources - oil and gas - and to create optimum value. We cannot take 75 years of business success for granted rather than looking at it as a reflection of our high standards, technological innovativeness, our employees' exceptional commitment and a sound ownership structure", explains DI Markus Mitteregger, Managing Director of RAG.
"Security of supply, in addition to more efficient use of energy and expansion of renewable energy technologies, is one of the three pillars of our energy strategy", says Reinhold Mitterlehner, Austria's minister of Economy, Family and Youth. "The fact that Austria is moving in the right direction was demonstrated during the gas crisis two years ago which RAG managed to overcome. “However, we must not reduce our efforts to expand storage capacities and diversify delivery routes. Although the use of renewable energies will be intensified over the next years, fossil energy sources will continue to play a pivotal role in the energy portfolio of Austria and the EU", says Mr. Mitterlehner.
In the past 75 years, RAG turned from being a pioneer in Austrian oil production to one of the largest operators of underground gas storages in Europe, which now hold volumes of approximately 5 billion cubic metres. The impressive, forward-looking scope of RAG's business portfolio includes ongoing exploration and production of crude oil and natural gas not only in Upper Austria, Salzburg and Lower Austria, but also reaching out to Germany, Hungary, the Ukraine and Poland as well as gas trading activities and RAG's leading role in using promising new technologies. This great amplitude emphasises the power and sustainability of RAG. In recent years, domestic oil production could be increased again and secured for many decades to come.
Since 1935, around 1000 oil and gas wells were drilled, 14.9 million tons of crude oil were produced and 27.4 billion cubic metres of natural gas were sold. Most stringent safety and environmental standards and the expert know-how of RAG's 400 employees play a decisive role in the company's successful performance.
"As the core shareholder of RAG, EVN has taken responsibility for the future-oriented development of this oil and gas production company for close to 20 years now. RAG still ranks among the technology leaders in the oil and gas market, very much like it did when it was established 75 years ago. With its high level of investments, RAG is one of the market leaders in the gas storage industry securing Europe's energy supply today", as Dr. Rudolf Gruber, chairman of the supervisory board and representative of EVN AG, which holds 50.025 % of the shares in RAG, points out.
On October 14th and 15th, 2010 top-level representatives from industry and politics as well as long-time partners and customers met in Vienna and Linz to celebrate with RAG the company's 75th anniversary.
Significant investments in Salzburg and Upper Austria
In the past two decades, storing natural gas has become RAG's primary field of business. Gas storage facilities form the backbone of Austria's security of supply with energy. In order to maintain and increase the high level of security of supply throughout the years ahead, RAG is expanding existing storage facilities and further projects in Upper Austria and Salzburg and operates its own two drilling rigs to boost domestic oil and gas production. Consequently, oil production was increased to 130,000 tons. By 2011, RAG-operated storage facilities will offer storage capacities of approximately 5 billion cubic metres of natural gas, representing more than half of Austria's annual gas consumption. This makes RAG one of the five largest underground gas storage operators in Europe.
"Austria is - compared to other countries in Europe - in the fortunate position to have unique geological boundary conditions for underground gas storage. In the years ahead, Austria will have the chance of becoming Europe's leading gas storage country", underlines Mr. Mitteregger. "It is the combination with promising renewable energy sources that makes underground gas storage so important: Thereby we will be in a position to compensate the fluctuating amounts of energy generated by solar and wind plants in an economically efficient manner", continues Mr. Mitteregger.
Over one billion Euros were spent in the past decade for RAG's operations, revitalisation of crude production and building new storage facilities. The workforce was more than doubled over recent years. In 2010 alone, the investment volume was around 200 million Euros. This was both a major impulse for service companies and created sustainable permanent jobs. Currently, RAG has approximately 400 own employees and another 500 contractor staff, most of them working in Upper Austria and Salzburg. Moreover, some 1000 persons were and are assigned to the company's construction sites.
Further inquiry note:
Elisabeth Kolm
Press officer / Corporate Communications
Schwarzenbergplatz 16, 1015 Wien
T +43 (0)50 724-5448; F +43 (0)50 724-5238
elisabeth.kolm@rag-austria.at