thr 027 Greece-energy  Energy expert: era of cheap oil is over Athens, Sept 9, IRNA -- A Greek oil and energy expert says high taxes on oil and profit-making by refineries in the West are the main reasons of high oil prices in Europe.

Costis Stambolis told the Islamic Republic News Agency (IRNA) in an interview that taxes on oil in European countries vary between 45 to 68 percent. He cited the example of Greece where at one time taxes on oil hit the 70 percent mark. Stambolis, a specialist in solar energy, has been engaged in energy issues since thirty years. He owns a publishing house in Athens, Delos Press, which publishes a magazine `Energia' the only Greek-language monthly related with oil and energy matters. He said that some refineries in Europe stockpile crude which they had purchased at a lower price and then sell it to consumers at the higher prevailing price. Referring to current oil price, Stambolis predicted that they might go up to dlrs 40. He said a ``golden rule'' has to be found to fix the oil price. He said oil price in the range of dlrs 20-25 would be ideal, adding that we have to live now with the price range of dlrs 25-35. ''The era of cheap oil is over,'' stressed Stambolis. He explained that the main problem is not the level of price but the rapid rate of change. He said a gradual price rise can be absorbed by the economies of the industrialized states. Stambolis said high an oil price can be beneficial to both producer and consumer states. The producer states will have more revenue to invest in exploration projects, while in consumer countries there would be constraints on oil consumption and hence oil deposits would be maintained for a longer period. Stambolis told IRNA that an high oil price will also give incentives to industrialized countries to develop alternative sources, such as natural gas, solar and wind energy and hydrogen. Referring to Greek-Iranian cooperation in the oil and energy sector, Stambolis said Greece can buy more oil from Iran and also participate in exploration of oil and gas projects in the Islamic Republic. He pointed out that there are big Greek private oil companies that can also finance projects in Iran. The Greek energy expert said Greece, Iran and Turkey can also cooperate in the natural gas sector following the improvement in Greek-Turkish relations. Stambolis said that in the decade 1989-99, average increase of oil consumption in Greece was 3.3 percent. Greece imports about 17 million tons of crude oil annually. NK/KS End ::irna 09/09/2000 13:08

http://www.irna.com/newshtm/eng/19130818.htm

-- Martin Thompson (mthom1927@aol.com), September 09, 2000