Feb 28

 

In her speech to delegates at Shale Gas World Europe 2011, Malgorzata Maria Klawiter, Chief Specialist for Unconventional Resources, Department of Economic Development at the Office of the Marshall of the Pomorskie Voivoideship in Poland showed a slide of a protest against shale gas in her region of Poland.

“People protest against everything because they don’t know,” she explained. “It’s hard to predict how the discussion would be accepted by the citizens; sometimes they are afraid of something that’s new; many times it’s not the locals but people with the cottage houses who don’t live there but come there very often – they don’t want to be bothered by heavy trucks on their lands.”

Ms. Klawiter said that she engaged an environmental NGO at protests, suggesting they should consider the benefits, but they said she had been bought by the industry.

“The protesters were against pollution,” she recalled. “They were throwing around sentences, saying something was stated in the law that’s not. They said they don’t want to be educated, because it meant the industry wanted to impose its opinion upon them.”

Regional authorities, she said, needed to be involved in the dialogue, but sometimes they did not bear the knowledge to be able to do that.

She explained, “Regional self government is not the actor involved in granting concessions, but we can influence communities, authorities, and the local government, so we are in a good place to be an integrator for all the actions occurring.”

She said that Pomorskie Region, where she was an official, was in the northwest of Poland with a population of about 2 million, and that the primarily agricultural area had never experienced any gas-related activity.

“The region is more like the integrating part,” she explained of its role among Poland’s administrative units. “It’s not that we have the power over others. We are consulting on strategy, evaluating potential and setting targets.”

She said that there was a problem with social dialogue regarding shale gas exploration, as it was something “perfectly new” in Poland. Ms. Klawiter said, “The concession areas are huge and this is the very beginning. There are like 10 well bores, so the influence exploration will have is hard to predict.”

“Many companies predict a huge amount of shale gas there, up to 5 TCM,” she reported of her region.

Showing a map of the Pomorskie region, she said that 85% of the region was covered with concessions. Ms. Klawiter showed a list of concessionaires and said that ownership changed very quickly. According to her, the three biggest were 3Legs Resources, PGNiG and BNK Petroleum.

Again, in regards to public acceptance issues, she said talking to everyone was her advice to the delegates in attendance.

“Polish law says you need to discuss with local communities and seek their acceptance,” said Klawiter. “If they know too late they might be scared enough not to talk to anyone.

“It’s our responsibility, not only the company’s,” she continued of informing the public of E&P activities. “If you start the dialogue, involve local authorities as well as the regional authorities in how to target this specific community. One could be pro, the other against.”

She reported that the Pomorskie Voivodeship planned on initiating a public dialogue entitled “Energy and Self Governance.” “At the end of the discussion the whole thing is written down so that participants can reevaluate and contact the persons involved,” said Klawiter, who offered more details.

“We want to give an opportunity to companies to make a space for dialogue. We would invite experts, allow questions to be asked, meet companies and authorities. When they all have knowledge and dialogue, they can work on a compromise.”

Source: Natural Gas for Europe

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Feb 28

 

SHARES in Providence Resources soared yesterday after the company reported that it has found crude oil at what could be a large oil reservoir off the south coast of Ireland.

“We’ve delivered on what we said,” Providence chief executive Tony O’Reilly said yesterday. “The markets are reacting.”

The shares rose as much as 25pc in Dublin after Providence said it had found light crude oil in a large sandstone reservoir about 7,550ft under the sea off the south coast. Providence found the crude oil while drilling an appraisal well — its fifth in the area.

All the wells have shown evidence of oil, which suggests the field could be larger than previously hoped. Oil samples from the reservoir have now been sent for testing in a UK laboratory.

“This is uniformly good news for Providence shareholders,” said Joe Langebroek, of Davy Stockbrokers. “The next step is the flow test but so far so good.”

Providence, which owns 80pc of the Barryroe oil field, expects to conduct a flow test in few days’ time. That test will give a good indication of whether the find is commercial and the results could be made public in early March.

Analysts said the well must produce about 1,800 barrels of oil or gas equivalent every day to make commercial sense. Any oil could eventually be transported by pipe to the Whitegate refinery in Cork.

Providence is engaged in the biggest drilling programme in Irish history as it looks for oil and gas off the Irish coast. Barryroe was one of the first areas to be drilled because it has proven reserves. Providence hopes new drilling techniques and better computer imaging mean that it will be possible to find commercial oil.

“The market is moving to us,” Mr O’Reilly said. “Prices and technology are helping.”

Technical director John O’Sullivan said Providence could now look forward to materially progressing the project.

“These sands, which appear to have an intact overlying pressure seal, sit directly on proven, mature and oil-prone source rock and therefore open the route to significant resource volumes within the Barryroe licence area,” he said.

Providence holds an 80pc interest in the licence and operates it on behalf of its partners, San Leon Energy and Lansdowne Oil and Gas. The shares closed up 77c, or 22pc, at €4.20 in Dublin yesterday.

Source: Irish Independent

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Feb 27

 

Chevron Corp. will start drilling its second shale gas exploration well in Poland at its Frampol-1 license site in March, Rzeczpospolita reported, citing Grazyna Bukowska, a spokeswoman for Chevron Polska Energy Resources.

Chevron owns four shale gas exploration licenses in the Lublin basin and will soon complete drilling its first Polish well at Horodysk, the newspaper reported.

Source: Business Week

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Feb 23

 

A spokeswoman says Canadian Talisman Energy is assessing the commercial potential of a shale gas deposit it has found in northeastern Poland.

Jadwiga Swiecicka said Thursday that a test well near the town of Braniewo has revealed the presence of gas but months of examining the samples are needed before it is clear if the deposit is sufficient for commercial use.

Earlier this month Exxon Mobil said the amounts of shale gas it found in two test wells would not justify commercial production.

Some 20 international companies are checking the potential of shale gas deposits in eastern and central Poland, believed to be among the largest in Europe.

Poland is seeking new sources of energy to cut its dependence on Russian imports.

Source: CBS News

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Feb 23

 

Poland’s gas monopoly PGNiG says it has filed a lawsuit against its Russian supplier Gazprom with an international tribunal in a price dispute.

State-owned PGNiG said Tuesday that the reason was a change in the pricing within a long-term deal concluded in September of 1996. It filed the lawsuit with the Arbitration Tribunal in Stockholm. It refused to give more details.

Gazprom in January eased prices for some of its clients in Western Europe, but not for PGNiG, which has been lately asking for price cuts.

Under the current deal, Poland’s imports of Russian gas were more than 318 billion cubic feet (9 billion cubic meters) in 2011 and were to rise to 360 billion cubic feet through 2022, but the prices was not released to the public.

 Source: Business Week
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Feb 22

 

Poland may tax shale gas production as of 2015, an official said on Wednesday, as the country hopes future extraction of the commodity would generate fresh state budget revenues on top of boosting its energy security.

Poland granted more than 100 exploration permits, issuing them to global majors such as Chevron and Exxon Mobil , after a U.S. agency estimated the country could have Europe’s largest shale gas reserves of some 5.3 trillion cubic metres.

Though that has not been confirmed yet, Warsaw is already drafting legislation applicable should the shale drive move into a production phase.

“Commercial extraction may be possible as of 2015, so we can preliminarily target that date as one when the tax could start functioning,” Deputy Finance Minister Maciej Grabowski told a conference.

“The goal is to provide a predictable environment for investors,” he added.

Prime Minister Donald Tusk’s government has high hopes for shale gas to help Poland lower its reliance on the highly-polluting coal as well as on Russian gas, thereby improving the security of its energy supplies and improving its energy mix.

Tusk wants shale gas to flow as early as 2014 and his centrist cabinet has recently obliged several state-owned companies to make shale gas investment a key priority.

Poland’s gas monopoly PGNiG said in January it would work with the country’s largest copper miner KGHM and two top utilities PGE and Tauron , all state-owned, exploring for shale gas.

Separately, Exxon also said last month its two shale wells in Poland had not found commercial quantities of gas, prompting Gazprom Europe’s largest gas supplier, to say European shale was an “illusion”.

Source: Reuters

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Feb 20

 

Poland is still in discussions with the European Union on developing a tax regime that incentivizes shale gas exploration in the eastern European country, Talisman Energy Inc. (TLM) Chief Executive John Manzoni said Monday.

“The [Polish] government and the EU are still working out how to make the process more conducive to investment. They’re in that process,” said Manzoni, whose firm is among those attempting to open up Poland as Europe’s first major shale gas frontier.

Talisman, which last week said it would reduce its number of U.S. shale drilling rigs in response to lower gas prices there, has completed two of three vertical exploration wells in northern Poland with another planned before the end of the year.

Manzoni said initial findings were “not discouraging, just too early to tell” the degree of commerciality.

Source: Fox Business News

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Feb 17

 

The process of extracting shale gas does not lead to contamination of the water table or to the release of excessive levels of polluting gas into the atmosphere, according to a study conducted for Poland’s Ministry of Environment by experts from the Polish Geological Institute (PIG).

The analysis, which bases its findings on a study of hydraulic fracturing performed on a borehole near the Polish village of Łebień, is the first comprehensive report conducted on behalf of the Polish government into the environmental effects of shale-gas extraction.

Although the report is confidential, newspaper Dziennik Gazeta Prawna managed to get hold of some of its findings.

The study says that the use of the controversial hydraulic fracturing method of shale-gas extraction, which is banned in some countries including France, does not lead to the contamination of ground water, or seismic shocks or to an excessive emission of gas into the atmosphere.

These findings stand in opposition to numerous other studies which suggest that hydraulic fracturing is harmful for the environment.

Scientists from Cornell University in the US are even warning that drilling for shale gas and hydraulic fracturing may contribute to global warming, DGP reported.

Source: Warsaw Business Journal

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Feb 17

 

Poland’s top refiner PKN Orlen and the country’s third-largest utility Enea may strike a deal on joint shale gas exploration in two months, Polish newspaper Dziennik Gazeta Prawna said on Thursday without citing its sources.

A deal between the two state-controlled firms would fit into the Polish government’s drive to encourage its companies to contribute to the development of shale gas in the country.

Poland’s top utilities PGE and Tauron, alongside copper miner KGHM, signed a similar agreement with Poland’s gas monopoly PGNiG at the end of January.

Enea did not have an immediate comment, while PKN Orlen was unavailable for comment.

Prime Minister Donald Tusk’s government has high hopes for shale gas to help Poland lower its reliance on highly-polluting coal as well as on Russian gas, thereby improving the security of its energy supplies.

Poland has granted more than 100 shale gas exploration licenses including to global majors like Chevron and Exxon Mobil. PGNiG holds 15 such permits.

The United States has estimated Poland could have the biggest shale gas reserves in Europe amounting to some 5.3 trillion cubic metres.

Source: Reuters

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Feb 16

 

In an interview with Bulgaria’s TV7, Traicho Traikov, the nation’s Minister of Economy, Energy and Tourism, shared his discussion with France’s Energy and Industry Minister Eric Besson.

Bulgaria and France have both taken steps to halt the exoploration and production on unconventional hydrocarbons (shale gas and shale oil), using the process of hydraulic fracturing.

Traikov said that he had held talks with Minister Besson, who had implied that the shale gas debate would soon be renewed in France.

The Bulgarian minister also alluded that “the defenders of the status quo” has been active in the shale gas debate in Bulgaria, which he expected would also be renewed.

“This is a precious resource for achieving Bulgaria’s energy independence and if we can use it safely, I do not see why not,” commented Traikov.

Source: Natural Gas for Europe

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