Five Countries in the Eastern Mediterranean are Shaking Up Europe’s Energy Map (The Conversation, 4 min read)
For a long time, Russia has been the primary supplier of most of Europe’s oil. With new discoveries in the Mediterranean Sea, things are finally getting a shake up as new players emerge. This article outlines which countries to watch out for. Egypt’s first gas discovery in 2015, the Zohr Field is the largest field in the Mediterranean. Together with 11 new energy projects rolling out, the discovery is positioning the country as a regional hub and is an attempt to counteract the recent political unrest. Cyprus is another prime emerging player, with major discoveries going back to 2011. These, however, might be hindered by the geopolitics tearing apart the Turkish and Greek sides of the island. Israel has not only drilled plenty of gas in the past 20 years, but is strategically cooperating with Greece and Cyprus, building a $7bn pipeline feeding into Southern Europe. Together with Egypt, the four countries are aiming to exclude Turkey from the market.
Why does this matter? Russia’s dominance over the European gas supply is under pressure, which could realistically result in conflict. Turkey recently purchased a Russian anti-aircraft system that could be deployed near disputed gas discovery fields, which is keeping local countries, the EU, and the US on alert.
(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)
Sign up to the Macro Hive newsletter here: