European nations are beginning to explore their own oil and gas resources again, moving away from a strategy that emphasized renewable energy investments in recent years. This insight comes from Mathios Rigas, the CEO of Energean, which is one of the largest independent gas producers in Europe.
Countries like Greece, Italy, and Cyprus are revising their energy policies following the upheaval in energy markets triggered by Russia’s invasion of Ukraine in 2022. Rigas notes that just a few years ago, Greece was primarily focused on green investments, discussing the closure of coal-fired plants. Now, however, drilling for oil and gas is back on the agenda, with projects such as a significant well to be drilled with Exxon in western Greece.
In Italy, recent legal changes mean that the government is now open to new exploration activities. Rigas mentioned that Energean is in discussions to obtain new exploration licenses in areas near its prospects in Greece. He indicated that while development may not be immediate, conversations about resuming exploration are promising.
Although investments in renewables continue, the transition to clean energy has slowed recently. The high costs of alternative fuels, such as hydrogen, have made many reevaluate the reliance on fossil fuels, prompting oil companies to secure more reserves as they foresee a longer lifespan for these fuels.
Rigas, a petroleum engineer who founded Energean in 2007, emphasized the importance of a change in mentality across Europe to achieve true energy independence. He believes Europe has the potential but needs to change course from recent choices made by its leaders.
For Energean and similar companies, the competition remains fierce as long-term gas projects must now vie with natural gas supplies from the U.S. and Qatar. Rigas has confidence that European producers can stay competitive by forming long-term agreements with customers such as factories and power plants, which favor the predictability of fixed pricing—even against potentially cheaper gas from Russia.