‘Black Gold’ Now Mined in Germany

BERLIN — The economic wastelands of the former East Germany are becoming the focus for a rush for reserves of “black gold” as world oil prices rise to unprecedented levels.Companies from across the globe, including Britain, have been competing to locate and tap new oil fields once considered too small to be profitable.But with prices now flirting with a record $140 a barrel, and forecast to keep rising, an oil rush is on to recover every last drop of Germany’s energy resources.“In 1990, all oil production was stopped in East Germany as it was not profitable,” a spokesman from the office of mining, geology, and raw materials, in the former East German state of Brandenburg, Klaus Freytag, said.“Now with prices increasing six-fold, the boom is so big that there is a shortage of oil experts, exploration teams are booked out for many months in advance and drilling equipment is totally unavailable for purchase on the market,” he said.German reserves hardly compare with the Arabian Gulf, or new energy giants like Russia. Peak production in the 1960s and ’70s was just eight million tons a year, compared to current annual Saudi production of more than 500 million tons. But while oil sources are being tapped across the country, investors are focusing particularly on the impoverished regions of East Germany.“The East German regime constantly suffered from a lack of hard currency so they invested a lot in thorough exploration for resources,” Mr. Freytag said. “The explorations were very well documented, so today, we have an extremely precise knowledge about the raw materials there. That’s why the terrain is attractive for new investors.”Mr. Freytag said that 15 exploration licenses had been awarded in Brandenburg alone in the two years. Companies include energy giants like Exxon Mobil and Gaz de France.But smaller groups have also been tempted, such as Celtique Energie, a British firm which has been backed with American venture capital to unearth oil near the Polish border. The dramatic influx of foreign money and expertise, however, does not worry a geologist who set up Petcom, a small German company, Karl-Heinz Bleschert.With his business partner, he claims to have what amounts to a map of East Germany’s buried energy treasure.“Our advantage is that we are real insiders,” he said. “We used to work for the former East German state company which prospected for oil and gas.” Based on the “seismic data” they worked on for East Germany, the two men bought two exploration licenses in 2005, one for an area not far from Berlin.“As insiders, we know that our success chances in these areas are 90%,” he said. “And I am not talking about a small quantity.” Despite hopes of a financial bonanza though, Mr. Bleschert insisted that the new oil rush was about more than just money.“In the past we lived as East Germans and did not have the opportunity to work for ourselves. So I am delighted with this project. For me, what’s most important is the adventure,” he said.

‘Black Gold’ Now Mined in Germany

‘Black Gold’ Now Mined in Germany

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