Hydrocarbons: The Window of Opportunity spells no changes for Green Transition commitment

Tuesday, April 12, is a historic milestone in the country’s energy development, as the Prime Minister, Kyriakos Mitsotakis, gave the green light to accelerate the search for potential hydrocarbon deposits hidden in the Greek subsoil. The decision comes in the light of the dramatic events in Ukraine and the consequences of the war on the whole spectrum of the economy and primarily energy.

The energy crisis was not born out of the rubble of Ukraine. The price had already started last summer, on the occasion of the apparent shortage of gas supply, combined with the forecasts for a severe winter. The war further disrupted markets, with excessive energy costs being passed on to consumers and threatening the economy with a return to the bleak past of high debt and stagflation.

Energy developments demand the need to adopt a more realistic timetable for our transition to clean energy, but also to utilize all of our energy weapons, including hydrocarbons. The search for a strategic and sustainable alternative to energy imports is inevitable.

In recent years, it is true that the issue of research has been pushed aside. Hydrocarbons were demonized by Europe and this attitude was accompanied by a dramatic reduction of investment plans by international oil companies in extraction, seeing the coming energy transition that would limit the consumption of minerals, in combination with the large instability in oil prices.

The Ukrainian problem and the prospect of decoupling from Russian energy have sparked an incredible price rally in the gas market. This was the spur of the moment to look at the whole issue from a new perspective and turn to redesigning and redefining our strategy.

If we also add to the basket of arguments in favor of research the fact that hydrocarbon imports accounted for 50% of the country’s foreign trade deficit (figures for 2020), but also the fact that compared to some of our European partners, our energy dependence is particularly high (84% in 2020 with the average of the EU at 57%) the decision of the Government is fully justified.

Our stance on the issue of hydrocarbon exploration was dictated for another serious reason. Divestment from Russian gas will prove to be a costly undertaking, which means that we must take appropriate measures so as not to burden consumers with the cost of diversifying their sources of supply.

The truth is that in the Greek hydrocarbon market, since 2014, valuable time has been lost but it is not of the present to comment on the causes and pretexts of the delays. Today, all our attention is focused on the 6 areas of interest, in the Region of Epirus and in the five sea areas, in the Ionian, in Kyparissiakos, and west & south of Crete, so that by 2023 we know if there are, indeed, gas fields that we can take advantage of. Companies will have to do their job, that is, put money into completing the research and highlighting the goals for the next step of the research drilling, with a strict schedule. And the State should also do its job. It should not allow investors to become mired by bureaucratic entanglements.

In this project we look forward to the cooperation with the Hellenic Hydrocarbon Management Company (EDEY) which we are upgrading, as well as the consent of the local communities, with the hope that we will be able to complete this huge national project on time. There is no time to waste. We will do everything possible to give a new perspective to the development of the country, with absolute respect for the Environment.

Alexandra Sdoukou is Secretary General of Energy and Mineral Raw Materials of the Ministry of Environment and Energy