Don’t get caught up in the hype

It is tempting for resource-poor countries to overestimate the promise of newly discovered hydrocarbon resources, particularly in times of need. Cyprus’ experience after the discovery of the Aphrodite gas field in late 2011 is revealing. Back then, during a time of economic crisis, many placed unrealistic expectations on this potential offshore wealth, hoping  it would save the country from financial collapse. The Cypriots also exaggerated the geopolitical stakes involved, which led them to the wrong conclusions. The Cypriot experience illustrates a series of missteps that we are all too familiar with here in Lebanon, and offers precious lessons as the country embarks on oil and gas exploration. In 2013, Cyprus’ finances were in disarray. In March, Michalis Sarris, the Cypriot finance minister, flew to Moscow in a last-ditch attempt to seal a deal that would secure Russia a stake in Cyprus’ offshore gas resources in return for financial support to