Greece: The new "Norway" in Energy Say Major Oil Companies - MUST READ

(Photo credit: kenhodge13)

Michail Niarchos (youngpetro.org) - A lot of ink has been spilled about the possible hydrocarbon quantities in Greece. Many companies have shown a lot of interest for the seismic data of just the first regions that have been explored by PGS.

Greece can be prove to be the new European oil and gas zone, without even taking into consideration the promising shale oil and gas that is present in many Greek regions.

Underneath the Aegean and Ionian Sea crust, according to many scientists lies some of the biggest hydrocarbon reservoirs of Europe. Top executives of the Oil and Gas industry estimate that Greece can acquire its own hydrocarbon industry in the years to come, and turn out to be an energy center for the whole region.

Even though it is quite soon to say whether the hydrocarbon quantities will be enough to make Greece an exporter, or even if it is enough for its own needs, preliminary results are very promising. New technologies and techniques help in making deep sea reservoirs reachable and economically viable. This could upgrade the geopolitical status of Greece in many ways.

Cyprus is cooperating with Israel for their own gas reservoirs and both are seeking ways to export these huge gas quantities to Europe. Greece can be the solution to this problem with the international TAP pipeline, and even with the plans for the huge gas storing place in the Northern Aegean in Macedonia region.

Greece is estimated to become the new Norway according to many big Oil companies.

This could pose part of a solution for the economic crisis that Greece has in the recent few years. Huge amount of money as well as many new job positions could offer a breath of much needed fresh air to Greece.

New regions of Greece in the Ionian Sea and in the south of Crete of a total 225.000 square km are now being promoted for seismic research. Many sources in the government say that in these regions, reservoirs such as the Cypriot and Israeli are expected to be discovered.

A significant problem that exists is that Greece has not, yet, declared its exclusive economic zones as most of the countries worldwide have. The reasons for this are complex and tricky. It was to do with the geopolitical situations and power play in the region. An exclusive economic zone, also known as EEZ, gives to a state right over the mineral rights over that area. Greeces neighbor to the East, Turkey, has declared as Casus Belli, or act of war, if Greece exercises its lawful right to declare its EEZ. Up to this point this wrongful Turkish position had little economic consequences, but now, as there are hydrocarbons involved a solution is needed. USA is exercising pressure to make the two countries reach a solution and exploit the hydrocarbons together. Many parameters have to be taken into consideration for something like that to happen though.