Hungary’s hydrocarbon sector achieved its strongest results in over a decade last year, with domestic oil and gas production reaching levels not seen since the early 2010s. According to a joint update from the Ministry of Energy and the Supervisory Authority for Regulatory Affairs, crude oil output climbed to approximately 1.17 million tons, the highest level recorded since the 2000s, while natural gas production neared 2 billion cubic meters.
Oil extraction rose sharply compared to previous years, increasing by more than 250,000 tons compared to 2021 levels. Officials noted that this momentum was visible already in the first half of 2025, when production surpassed 100,000 tons in six months—a threshold not reached in the same period the year before.
Natural gas production also showed a notable rebound. Nearly 2 billion cubic meters were extracted from Hungarian fields last year, covering over 20% of national annual consumption and marking the strongest performance since 2013. To sustain and expand domestic output, the Government restarted mining concession tenders in 2024 after a five-year pause, awarding 20-year licenses to explore and produce hydrocarbons in six designated areas. Positive feedback from this process has prompted the Ministry of Energy to announce additional concession rounds in the near future. State Secretary Gabor Czepek emphasized that strengthening domestic energy supply is key to reducing reliance on imports, with meeting as much demand as possible from Hungarian resources remaining a central policy objective.
Alongside fossil fuel growth, the Government is advancing renewable energy deployment. Rapid expansion of solar capacity is expected to reduce electricity imports to about 20% of consumption by 2025. Under the Jedlik Anyos Energy Program, additional incentives are being directed toward non-weather dependent renewables, particularly biogas and geothermal energy.
Energy storage is another priority. Through the Home Energy Storage Program and corporate support schemes under the Jedlik framework, the Government plans to invest around 395 million euros into new storage projects, aiming to add approximately 800 MW of capacity, increasing Hungary’s existing storage base fivefold. Laszlo Nagy, head of the Supervisory Authority for Regulatory Affairs, noted that the surge in hydrocarbon production reflects the impact of regulatory reforms introduced over recent years, marking the culmination of five consecutive years of steady growth in domestic extraction.
