The Aegean Oil and Gas potential and the Greek national debt
The severe economic problems facing the Greek people will never be solved by economists, financiers or by politicians alone. The $300 million per year revenue from a proposed Russian gas pipeline through Greece will never be enough to restore the country’s solvency. To help solve its financial problems, Greece needs a relevant new source of income: revenues from its so far hugely under-exploited oil and natural gas fields in the Aegean Sea. This will reduce Greek debt, add new employment and fast-track economic recovery.
Below is an op-ed from Jack J. Grynberg, president of Grynberg Petroleum Company, Pricaspian Development Corporation and Superior Energy Company, Inc., MOST Power, LLC.
I am a multi-degreed Petroleum engineer with an international success ratio of 96.4 percent of finding oil, and a success ratio of 100 percent in doing so in Greece in the early 1970’s. I made three out of three oil discoveries in the Aegean Sea between 1969 – 1974, before in June 1975, the then Government of Greece, without compensation, nationalized my oil discoveries and exclusive concession.
I discovered the East Tassos oil field in Greece in 1973. At that time, the East Tassos was not economical to produce oil because the 100 meters of the Miocene unconsolidated sandstone flowed with the oil when I tested it. Today, we have the technology for this and can economically and profitably produce clean oil from this formation.
In my opinion, based on primary, secondary and tertiary oil recovery methods, the East Tassos oil field should today produce at least 1.6 billion barrels of oil.
Applying generally accepted international oil production revenue sharing formulas, if the East Tassos Field were properly developed, the government and people of Greece would get 35 percent of the net revenue. This, at today’s oil price of approximately $60 per barrel, would yield Greece approximately $35 billion in net revenue.
During my work offshore Greece four decades ago, I seismically delineated four oil-bearing geological structures in the eastern portion of the Aegean Sea, which I named Cape Maronias offshore.
Using the data I accumulated at the time, in my opinion the Cape Maronias field could yield an additional $35 billion in net revenue for the Greek economy.
The East Tassos and Cape Maronias Fields are both located in waters of approximately 100 meters depth, well within the reach of current offshore drilling-technology. With today’s technology, we are able to drill offshore in up to 3’000 meters of water.
Among Eurozone leaders, Chancellor Angela Merkel, as a former physical chemist, would understand the technical foundations behind the full potential for offshore petroleum development in Greece.
The revenues from such development, and the potential of additional oil discoveries in the Aegean Sea, would not only guarantee repayment of the massive loans that Greece owes its creditors but also give a strong sustainable boost to the Greek economy.
Therefore, my approach to Greece is simple: to make a decisive step to solve the problems currently facing the country it has to develop the massive oil potential inherent in offshore Greece.
This task should immediately be tackled for the benefit of the Greek people and the nation’s creditors.
Source: Jack Grynberg