Exploration for oil to go ahead in Bay of Valencia
Central government have decided that oil exploration in the Bay of Valencia will not be banned after the Senate debated the issue yesterday. The government has already issued licenses to UK oil company Cairn Energy, to conduct surveys of the area between the Gulf of Valencia and the Balearic Islands.
The opposition parties had attempted to block these permits, saying that the exploration would present a high ecological risk to marine wildlife and tourism on the coastal areas. The Balearic government had also asked for the permits to be revoked because of the possibility that a leak would ruin it's tourism industry. Ibiza, Formentera and Mallorca may be affected should oil be found and a spill were to occur.
The Mediterranean sea off the coast of Spain has been surveyed for oil for the past 35 years. The US Geological Survey estimates a 60% probability of large reserves of oil or gas. Proponents of the exploration cite Israel as an example, where surveys found five large gas fields that could fuel the country for the next 200 years.
With the price of petroleum ever on the increase, countries who import oil are under pressure to find alternative sources of energy. As the technology is now available to drill 3000 metres below sea level, and then a further seven miles under the sea bed, Mediterranean oil has become a financially viable option.
95% of today's transportation relies on petroleum. With much of Spain's economy dependent on it's tourism industry, the link between high oil prices and the cost of transportation could price out many of those in the market for a quick trip to Spain.
