The company was granted permission to prospect for gas and oil under Royal Decree by the former Socialist government but, as far as Madrid is concerned, should the projects get the green light from the Ministry for Environment, prospecting will go ahead because central government considers that a Spanish oil and gas industry will generate job and wealth and reduce the cost of liquid fuel like petrol, all of which has to be imported - hence why it is so expensive. Another area of interest to the oil and gas companies is the Canaries where a referendum is going to held on the issue.
However, yesterday, the results of studies carried out by Deloitte and The Spanish Association for Gas and Oil Exploration (Aciep), concluded that, at its peak, an oil and gas industry would create 250,000 jobs in Spain and boost the country’s GDPby 4.3 percent generating some 44,000 million euros per year.
Opportunity
And, looking to the long term, by 2035, some 750,000 people could be working either directly or in directly in the oil and gas industry.
The President of Aciep, Antonio Martin, said yesterday that apart from the wealth the industry would generate for the country’s economy, initial investment in an oil and gas industry would be between 700 and 1,000 million euros. Prospecting for and producing oil and gas is a very important opportunity for Spain to develop a new and prosperous industry.
"It would have an extremely positive impact on local and national economies and ease the country’s dependence on tourism."
"This is an industry which generates extreme wealth," he stressed.
Despite the noises being made by the Balearic President, Jose Ramon Bauza who has threatened Madrid with legal action, central government will give the prospectors the all clear to proceed should their plans meet all the environmental and legal requisites.
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