Honors Economics, McQuillan
March 22, 2013
Cyprus Is Sitting On A Natural Gas Gold Mine
A recent discovery off of the coast of Cyprus, an island miles off the coast of Turkey, has found a large field of natural gas. The field is said to be between 5 trillion and 8 trillion cubic feet of gas. Cyprus is currently trying finance their huge budget deficits and bad bank holdings. Major energy companies around the world might want to invest in mining some of the gas as well. If Cyprus chose to mine this field of gas, they could generate bushels of money, pulling them out of their financial issues.
This is an incredible discovery for Cyprus. Completely out of nowhere, they are now able to pay off all huge budget deficits. They are currently living off a European bailout. They also have the possibility to generate more monthly income by partnering with major energy companies, thus being able to payoff budget deficits and then some. They should focus completely on mining the gas and then slowly spending their income on financial expenses, not all at once.
Article: http://money.cnn.com/2013/03/21/news/economy/cyprus-natural-gas/index.html?iid=SF_E_Lead “The field is modest by international standards. Noble estimates it could yield between 5 trillion and 8 trillion cubic feet of gas. For comparison, fields being developed off the Israeli coast have four times as much gas. Qatar, one of the world's largest gas holders, has nearly 900 trillion cubic feet. But for a country roughly as large as Connecticut, with about the same population as Manhattan, that's a lot of gas. "It was the third largest conventional discovery in 2011," said Michael Stoppard, chief strategist for global gas at the consultancy IHS. "It dwarfs local demand for the next 50 years." That means Cyprus, currently trying to secure a European bailout to cover huge budget deficits and bad bank holdings, could start exporting the gas to raise money. There's also the possibility...