|A shale gas rig near Lublin|
Despite early disappointment, Poland is still has some of Europe's most favorable infrastructure and geology for exploiting shale resources, according to a new report published by the US Energy Information Administration.
“Poland has some of Europe’s most favorable infrastructure and public support for shale development,” the report reads. It points to the Baltic Basin as the most prospective region and to the Podlasie and Lublin basins as also having potential.
The report estimates Poland's technically recoverable shale resources at 146 trillion cubic feet of shale gas and 1.8 billion barrels of shale oil. On an energy-equivalent basis, the figures are 20 percent lower than estimates published in 2011.
The report notes that initial test wells have yielded underwhelming results, and that ExxonMobil, Talisman and Marathon have all decided to leave Poland.
It also points to government interference as a possible risk. “The government is discussing modifications to the shale fiscal terms which may increase profit taxes on shale gas production to 40 percent or more, while establishing a government-owned entity to gain a minority equity stake in shale gas development projects,” the report notes. If implemented, these changes could “significantly reduce industry investment in shale exploration at a time of disillusionment with early well results,” the report adds.
But the report concludes optimistically, saying that the Polish shale gas extraction industry is still “at an early exploratory, pre-commercial phase,” and while initial drilling results have not met earlier expectations, “it is too soon to dismiss Poland’s extensive shale potential.”
From Warsaw Business Journal
Commercial shale gas extraction by 2014?
New Environment Minister sets shale exploration law as a priority
UN climate summit launches as Poland pledges to reduce CO2
Ministries look to fine firms for sluggish shale gas exploration
EP: shale gas projects must pass strict environmental tests
Will cabinet reshuffle save PO?
BY Remi Adekoya
What’s next for Jarosław Gowin?
BY Remi Adekoya