Sino-German strategic relations and investment in Cyprus offshore gas and oil? – John Gelmini

I would like to comment on Dr Alf’s reblog of an excellent FT article entitled “Decisive win gives Merkel strong hand – FT.com” in which he asks the following open question:

Is Angela Merkel‘s reelection likely to see Germany investing in the offshore Mediterranean gas and oil sector?

The answer to Dr Alf’s question is almost certainly yes because Germany‘s present policy of no nuclear power is unsustainable if Germany is to keep on growing at the required rate to create jobs and prosperity.

Currently, combined heat and power and conventional power stations plus better insulated buildings and homes, solar energy and conservation does the trick but it will not be enough. I cannot see Chancellor Merkel wanting fracking or onshore windfarms at scale, and the plutocrats behind the oil companies will not allow free energy via Tesla style “Singlepoint Energy”.

The alternative is for Germany to assist Cyprus develop its energy resources, which will be a boon for Cyprus, and a double boon for Germany, with its historic ties to Turkey which controls Northern Cyprus and its ties by default to Greece, through the last bailout and through the assistance China has given to Greece in exchange for ownership of certain islands. At the same time, Sino-German relations are likely to take on on a new strategic direction, which could well see a strong Sino-German interest in developing Cyprus’ off-shore oil and gas industry.

As Dr Alf knows first-hand, being based in Cyprus, the newest investment coming into Cyprus is from China as part of their “Go out and bring back in” policy.

The Chinese no doubt have an eye to the future and are probably positioning CNOC and Sinopec to work through a more user-friendly German partner as a possible alternative to the traditional Western oil companies like BP, Royal Dutch Shell, Exxon and Agip.

John Gelmini

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