It would be a “smart” move for businesses to invest in the oil and gas industry when prices have plummeted.
That’s the view of Delian Dobrev, Chair of the Bulgarian Energy Committee, who believes competition is currently low as large companies are cutting their exploration activities.
Bulgaria has invited global companies to explore new oil and gas blocks in the Black Sea in a bid to reduce its dependence on energy from Russia.
The nation uses around three billion cubic meters of natural gas a year and imports as much as 90% from Russia.
Mr Dobrev – who was speaking at the International Petroleum (IP) Week in London – told ELN Bulgaria has “very high hopes” of finding gas in the Black Sea. He said he in talks with a number of companies, including British firms such as BP, for the project.
Referring to the low oil price, he said it would “probably stimulate [Bulgaria’s] economy in the long run as long as these prices stay as low as they are”.
Mr Dobrev added: “This would probably not be sustainable for the oil sector and it would not continue for more than a year but in general it would stimulate the economy since it leaves more disposable income to households.”