Spain has been battling a recessionary economy with sky high unemployment for some time now. Their economy has been struggling to find a way out of the darkness, and now there is a possible solution. They can drill their way out of this abysmal situation. That’s right. We are talking natural gas and shale gas.
Spain’s Countryside is home to a rather nice sum of natural gas reserves. This could open the doors to a nice €44 billion ($60 billion) industry for the cash starved nation with one of the region’s highest levels of unemployment. The development of this industry, oil and gas exploration including production, will have a serious positive impact on their national economy. This find could help the country’s GDP and create new jobs. The unemployment rate stands at a massive 25.8 percent. Compare that to the Eurozone’s unemployment rate at 12 percent, the number is more than alarming.
Spain Has Been Hit Hard By Debt and High Unemployment
Spain has something in common with other European nations like Ireland and Greece, Spain has been racked hard by a mounting debt problem. Still, in 2013, the rate of contraction to their economy slowed to 1.2 percent but their unemployment rate has hit a record high of 26.4 percent.
Here comes the bright side.
The exploration of Spain’s natural gas reserves, is estimated to be at 2.05 trillion cubic meters. In theory, this could create 755,000 new jobs by 2030. This would equal nearly 4.7 percent of the employment of Spain. These numbers are estimated on 2 billion barrels of oil and 2.5 billion cubic meters of natural gas production.
Energy Independence Also Available
Spain’s immense reserve of energy resources is recoverable. This new industry can support Spain’s economy at a time when it is struggling with massive debt and high unemployment. These problems have forced the government to enact painful austerity measures, and this would alleviate those pressures. These natural resources would also help Spain become more energy independent as they currently import 99 percent of its oil and gas.
Binary Options Take for the Day:
Spain could use some good news. This could only help the embattled economy which in turn would bring unemployment down. This would also help them raise money which could lower their debt problem. As far as the EU is concerned, anything expansionary is good right now. This will effect oil prices as well as the euro currency as the week and quarter goes on.
Good news for Spain. Black gold can save them when they so desperately need it. What do you think, should Spain frak and drill its natural reserves ASAP to put people to work? Or do you think this is a bad idea as it will hurt the environment? What other options does Spain have? Sound off in comments below.