The benefits of hydrocarbon exploitation in Greece – The experts’ assessments

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According to experts’ estimates, the exploitation of hydrocarbons in the country can yield multiple economic and geopolitical benefits

Many times financially and geopolitically benefits can be derived from the exploitation of domestic hydrocarbon deposits, provided of course that they are identified and exploitable.

According to the official estimates of the ministry Environment and Energy, during the signing period of the concession contracts for areas of Western Greece for research, for every 100 million barrels of oil and assuming an oil price of 90 dollars per barrel, the State collects 6 billion euros.

It is noted that the estimate for the existence of reserves of this size is considered moderate as, indicatively, the area of ​​Prinos has so far produced 120 million barrels of oil equivalent.

The revenue of the State as provided for in the contracts signed and ratified by the Parliament comes from taxation, which is a fixed 20% on the net taxable income plus 5% which is the regional tax, the acre compensation which is a fixed amount per square kilometer area, the signing and production bonuses as well as from the rent in kind or in money calculated on the production of hydrocarbons.

In terms of size deposits that the Greek subsoil can host, several estimates have been formulated from time to time.

Indicative:

  • According to the Hellenic Hydrocarbons and Energy Resources Management Company “the potential value of Greece’s natural gas reserves could generate a turnover exceeding 250 billion. euros” (regarding https://www.greekhydrocarbons.gr/news_gr/PR_REL_040222.html)
  • The estimates of the Energy Committee of the Academy of Athens speak of “substantial possibilities to identify and produce significant quantities of natural gas that could reach 5 trillion over a 35-year horizon. m3 and to completely replace the PV imported into our country, but also to make it a producer of “Blue Hydrogen” during the transition period 2021-2050″ (regarding http://www.academyofathens.gr/el/announcements/press -releases/20220203 ).
  • According to the report “Economic and Geopolitical Benefits from the Exploitation of Hydrocarbons in Greece” of the Energy Institute of Southeast Europe: “In the marine areas where exploratory seismic surveys have been carried out, more than 30 potential research targets have already been specified, which with additional surveys could emerge in exploratory drilling targets for the discovery of hydrocarbon deposits. If we take into account that 1/4 of the drilling will be successful in the geological structures that have been identified in the marine areas of the Ionian and south and west of Crete, then these structures could host potential reserves of 70-90 trillion. cubic feet of gas, according to EDEY data, able to cover 15%-20% of EU consumption”.

The same report, in addition to the obvious economic benefits (increase in government revenue, investment, increase in employment, reduction in the cost of importing hydrocarbons, improvement in the trade balance, benefits for local communities) also points out, among other things:

– The geopolitical shielding from the participation of very large international companies in the field of hydrocarbon research and exploitation.

– Energy security due to a reduction in dependence on imports.

– The development of international commercial hydrocarbon transit services.

RES-EMP

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