Hungary continues to rely heavily on imports for its crude oil, but strategic work is underway behind the scenes to improve the situation. One of the pillars of this is the expansion of domestic crude oil production, which has been ongoing since 2023: production reached a 20-year record of one million tonnes in 2024, and annual production in 2025 was expected to exceed even this level. This growth alone does not replace imports, but it contributes significantly to reducing external dependence and strengthening security of supply.
We are producing more and more
Hungary has a centuries-old tradition of crude oil production. Although the industry has never been able to meet the country’s entire demand, the peak production of more than 2 million tonnes per year achieved in the early 1980s now seems almost impossible to reach again. From the 1990s onwards, production declined steadily, reaching a low point in 2014 with only 584,000 tonnes. Subsequently, from 2015 onwards, the trend reversed and production grew almost continuously, aided by intensive investment in domestic exploration and production and the revival of obsolete wells. The process gained particular momentum after the outbreak of the Russian-Ukrainian war, as increasing energy security and reducing import dependency became strategic priorities.
The average annual growth rate of 4-5% between 2015 and 2023 accelerated significantly: in 2024, growth was already 13%, and similarly dynamic growth was expected in 2025.
The figure can be referenced here: https://public.flourish.studio/visualisation/27327323/
Due to its geographical origin, domestic crude oil differs from Ural-type crude oil in that it is a more favourable, “medium-heavy” quality crude oil with better refining parameters, thus improving the quality of fuels produced at the Danube Refinery.
New oil wells in Pest County
Modern exploration programmes now focus not only on the traditional hydrocarbon-rich geological units of the Alföld and the Zala Basin, but are also paying increasing attention to the Central Hungarian region, especially around Pest. This strategic expansion has already yielded tangible results: the new oil fields discovered since 2022, such as those in Vecsés, Tura and Halgahévíz, are largely due to this new approach.
The map is available here: https://www.google.com/maps/d/u/0/edit?mid=16vJdwQFBcHsZ_4D17AybhG5-Gm7NFy8&usp=sharing
One of the keys to the success of the research is the close cooperation between oil and natural gas exploration companies and geothermal projects seeking thermal energy. This synergy is extremely cost-effective, as the same data used to survey the Earth’s depths, such as precise 3D seismic measurements, can be used for both purposes. A single geological survey can be used to find both hydrocarbon (oil and gas) and geothermal (heat) energy sources, reducing the financial risk of exploration and speeding up the discovery process. This approach maximises the utilisation of domestic deep drilling know-how and makes it possible to combat Hungary’s energy dependence more effectively.
It does not replace imports, but it improves self-sufficiency
The surge in domestic oil production is a direct and tactical response to the current geopolitical risks generated by the Russian-Ukrainian and similar conflicts. Although domestic production will never realistically replace imports entirely, it plays a key role in reducing the degree of dependence. This improvement is clearly visible in the figures when we compare domestic production and the calorific value of petroleum products to Hungary’s annual primary energy consumption. While this ratio averaged around 14% in domestic consumption between 2016 and 2023, thanks to dynamic growth, it rose to 16% in 2024. This favourable trend has accelerated further, with the ratio reaching 18% according to data for the first half of 2025.
The figure can be referenced here: https://public.flourish.studio/visualisation/27327469/
If we narrow the energy balance down to crude oil only and look at the physical quantity, the situation does indeed paint a somewhat more nuanced picture, but the improvement is unquestionable here as well. According to 2015 data, domestic crude oil production covered only 9% of domestic consumption. This was one of the lowest points in terms of import dependency. However, thanks to the research results achieved since then and the commissioning of new fields, the share of domestic crude oil in total consumption rose to 15.6% by 2024, measured in thousands of tonnes.
The figure can be referenced here: https://public.flourish.studio/visualisation/27327531/
Hungary’s dependence on imports remains a fundamental challenge in terms of crude oil supply, as domestic resources fall far short of the country’s total consumption. For this reason, increasing domestic crude oil and natural gas production is a vital strategic response to current geopolitical risks. The aim of boosting domestic production is not to achieve complete independence, but to strengthen security of supply and reduce import exposure.
Anton Oleksiy is currently a Master's student in Political Science at the Faculty of Law and Political Science, Eötvös Loránd University. Previously, he worked as an intern at the Hungarian Institute of Foreign Affairs, where he focused on the political situation in the post-Soviet space.
He specialises in international relations and diplomacy, in particular political and economic developments in the post-Soviet states.
