Strike it rich

Following the earthquakes on Sunday March 2nd and Wednesday the 6th last year, engineers from the Instituto de Seismographica de Valencia have been conducting extensive tests in the Vega Baja. One surprise result from  their testing was the discovery of oil reserves in this area.

Investa Recursos SL had already asked the government for permission to carry out explorations for gas and oil deposits in a 100,000 hectare area situated between Alicante, Murcia and Albacete provinces. These investigations did not however include the area from Orihuela down to San Miguel de Salinas.

Sr. David Field from the ISV says this find is "awesome". He adds that, "although the tests conducted so far are not specific enough to determine the extent of the reserves,  he is confident that the Bigastro oil field could produce at least 5,000 barrels of high quality crude per day by 2010 and possibly more in future years".

Further tests will now be conducted after which they will start  drilling.

CEPSA, who are organising the operations anticipate that by the end of this year there could be three drilling sites as shown on this aerial photograph by red dots.

The Mayor says this discovery could dramatically change the fortunes of Bigastro which may eventually rival some of the oil rich towns in Texas or the Arab states. 

I don't suppose the locals will be swapping their sombreros for stetsons. Nor will they drive Cadillacs instead of Seats. However, there could well be an upsurge in demand for property as engineers flood into the town. People  with property to rent or sell will be rubbing their hands with glee; houses that have stuck on the market will be in demand; developments that have stagnated will be re-vitalised. This is just what the town needs in the wake of the economic downturn.

To prevent any squandering of the benefit accrued from this discovery, the Town Council is going to  appoint one of its councillors to be responsible for oil development. He or she will be charged with the task of ensuring that the new wealth is used for the benefit of all in the town and not just a handful of lucky landowners. The first task will be to redesign the logo for the town; replacing the windmill with an oil rig.

There is a downside though. As the value of land in Bigastro increases, so will the rateable value. The Cadastra Office in Alicante haven't completed their calculations yet but it is expected that the base liquidable for houses could rise by 300 percent or more.  Good news for those who own open land but not for those of us who have houses here.