Aug 05

 

PRAGUE – The Czech Republic, where potential shale natural gas reserves have never been seriously searched for, has drawn new inquiries from energy companies, Prague says.

The Czech Ministry of Environment says two companies seeking new sources of shale gas have filed formal applications for exploratory operations in the country and others are waiting in the wings, local reports indicate.

Ministry officials say the companies are Basgas Energia Czech, a subsidiary of the Australian exploration company Basgas; and Britain’s Cuadrilla Resources, the online financial journal CzechPosition.com reported.

Also considering a shale exploration application through existing permits is the domestic Czech company Moravske Naftove doly, the Prague daily Economic News said.

While no systematic accounting of shale gas reserves has been done in the Czech Republic, the companies are eager to find out if it shares characteristics with Poland, which is believed to hold Europe’s largest shale gas reserves (up to 175 trillion cubic feet) has become the scene of a energy company feeding frenzy.

While it’s not likely the Czech Republic will be found to hold as much shale gas as Poland, investors are nevertheless checking out the lay of the land.

Cuadrilla Resources has filed to explore in a 365-sqaure-mile area of Moravia and company officials told CzechPosition.com they expect to receive a verdict on their application by fall.

Basgas is looking to explore a 37-square-mile area around Beroun in the central Czech Republic and a 300-square-mile region in the northeastern part of the country near Trutnov.

Environmental controversies have been generated in the United States, Britain and elsewhere over hydraulic fracturing methods use to extract shale gas — something Prague hasn’t had to deal with. Opponents say the process, sometimes called fracking, endangers groundwater.

The Czech government has said addressing such environmental concerns will come in time. The research to be carried out under the permits is likely to take at least five years, it said.

In the Czech Republic until now there has been no consideration of extracting natural gas from shale stone and reserves of this type haven’t been found (or systematically searched for) or technically and economically evaluated,” the Environment Ministry told CzechPosition.com.

If shale gas deposits are found in the Czech Republic, it’s unlikely the country will do what France did this year and ban fracking. Czech Prime Minister Petr Necas recently aligned his country’s energy policies with those of Poland, calling for more energy security for Europe.

Necas and Polish Prime Minister Donald Tusk last month in Prague said they want their countries to provide a “counterbalance” to other nations, such as Germany, which has moved to phase out nuclear energy, and France, with its shale gas exploration ban.

Tusk, whose country holds the rotating EU presidency, said Poland and Czech Republic should form a “common sense front” on energy — one that contends it’s unrealistic for Europe to rely solely on renewables as it struggles to reduce energy dependence on Russia.

“We fully support the Polish EU presidency and its priorities,” Necas said. “These are priorities the Czech Republic also shares.”

Source: United Press International

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Jul 12

Warsaw, Poland - The rush for shale gas in Poland is attracting some of the world’s biggest energy companies, giving the country hopes of energy security and strengthening ties with the United States.

Recent finds in northern Poland appear to confirm what experts have suspected for years – that Poland has Europe’s largest reserves of shale gas.  The news promises to encourage what has become a feeding frenzy of major gas companies and Polish hopes of energy independence from Russia.

Shale gas is natural gas trapped in shale rock.  In April, a report by the U.S. Energy Information Administration said Poland could have the largest and most accessible shale gas reserves on the continent.  But up to now, no one could be sure Poland had any gas at all.

Recently-drilled wells indicate the gas is there, says Pawel Poprawa of the Polish Geological Institute.  But, he adds, it is still impossible to tell whether or not it will ever be extracted.

“A couple of these wells altogether seem to confirm the concept,” he said.  “Yes, we think there is gas in the formation.  However, we need to figure out if we are able to get it to the surface, and if we do, then it is a question of if it will be commercial.”

Poprawa says it will be several years before anyone knows exactly how much gas Poland has, and at least a decade before large-scale production can begin.  But in the mean time, exploration concessions have been granted to some of the biggest energy companies in the world.

“We have on our market real majors, the biggest companies globally,” he said.  “We have here Exxon, Chevron, ConocoPhillips, Total – this is kind of unique, really.  This place a couple of years ago was empty.  Now everybody from the world comes here to make their exploration.”

Many of these companies are American, which has sparked the interest of U.S. policy makers.  On his recent visit to Warsaw, U.S. President Barack Obama said the United States is eager to cooperate with Poland in producing shale gas.

“Shale gas is an important opportunity,” the president said.  “We believe that there is the capacity technologically to extract that gas in a way that is entirely safe, and what we want to do is to be able to share our expertise and technology with Poland in a fully transparent and accountable way.”

Agata Hinc, of the Warsaw-based research organization Demos Europa, explains that collaborating on shale gas could also lead to closer political ties between the United States and Poland.

“For American companies it means money,” she said. “But it also means stable international cooperation on important issues that will last longer than two months.”

But when it comes to energy, Poland’s main geopolitical concern lies to the east.  The country has long been dependent on gas from Russia, and Hinc says that for many Poles, independence from their former communist rulers is a major concern.

“Energy security has meant for a very long time, and for some still means, independence from Russian gas here in Poland,” she said.  “This is a very big political issue.  I would not say the younger generation thinks about it that much, but certainly the older generations and our policy makers want to ensure that we are totally independent from our big neighbor”

Shale gas has become controversial in recent years.  Environmentalists claim that during the process of hydraulic extraction – known as “fracking” – gas and other contaminants from the process can seep into the ground water, damaging the environment and posing a health risk.  In the United States, New York State has imposed a moratorium on fracking, and France has forbidden any new exploration.

Spokesman Jacek Winiarski of the Warsaw branch of Greenpeace says companies in Poland need to take the environmental impact into account.

“We know what are the American experiences with drilling and extracting shale gas,” he said.  “It causes water pollution, animal diseases, and other environmental pollution.  We perceive gas as a temporary transition fuel between coal and renewables, so we are not against gas, but gas extracted in a safe way.”

But Hinc explains Poland’s priorities tend to be different from those in the West, and that for now, environmental concerns are likely to take a back seat when faced with the prospect of energy independence.

“In the richest countries in Europe, green groups are very strong because people want to live in a clean environment, which is not the case in Poland, at least not yet,” she said.  “As for now, cheap electricity and energy security are the most important issues.”

Fracking may begin later this summer, and for now, the size of Poland’s shale gas reserves can only be guessed at.  But with 120 new wells planned for the coming years, it appears the eyes of the world will be on Poland for a long time.

 

Source: Voice of America

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Jun 10

 

Prague – Peter Clutterbuck, Chief Executive of 3Legs Resources Plc, says that the shale-gas explorer will be able to show that its wells in Poland are commercially viable in 1.5 to 2 years.

3Legs’s six shale-gas exploration licenses in the Baltic basin in northern Poland cover as much as 4.8 trillion cubic meters of gas, Clutterbuck told  Bloomberg. The company has three more licenses for smaller reserves in the south of Poland near the city of Krakow, he said.

3Legs is in the midst of an initial public offering on London’s AIM market.

“What we’re doing now is using the funds raised from the IPO to further explore this region,” Clutterbuck said. “ So far nobody has proved a commercial discovery, but there is an expectation in the industry that this is likely to happen.”

Source: Bloomberg

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May 31

White Rock, Canada, May 31, 2011 – In an effort to accelerate shale gas development, Realm Energy International Corporation (“Realm Energy” or the “Company”) (TSX-V:RLM) (www.realmenergy.ca) has contracted Halliburton’s Consulting and Project Management team (“Halliburton”) (NYSE: HAL) to work with Realm Energy to significantly expand the technical evaluation and ranking of the highest-potential shale deposits found in emerging prospective basins globally.

Realm Energy and Halliburton Consulting began their collaboration in 2009 with an emphasis on European basins. During this initial effort, Realm Energy, supported by Halliburton, targeted ten discrete sedimentary basins in four European countries for evaluation.  The collaboration identified key prospect trends and Realm successfully acquired 650,000 gross acres and has 4.4 million acres under government application of contiguous tracts of land over significant shale resources.

“Realm Energy is now moving into an operational phase with our European leasehold and will contract with Halliburton to leverage their extensive shale-development knowledge, gained from their significant presence in the North American market,” said Realm Energy Chairman, Craig Steinke. “We could not have achieved the quality of our European portfolio without the help of Halliburton’s consulting organization; this is why we have expanded our collaboration to assess and rank shale resources globally.”

Source:  Realm Energy

 

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May 19

US President Barack Obama will focus on energy cooperation, including shale gas development, when he visits NATO partner Poland for the first time next week, a US diplomat said Wednesday in Warsaw.

“Energy is a pillar of Polish-American relations and it is sure to be the subject of discussions when President Obama visits Warsaw next week,” US ambassador Lee Feinstein told delegates to a shale gas conference here.

Global fuel giants are exploring Poland’s shale gas deposits, which a recent US study pegged as having a potential 5.3 trillion cubic metres of natural gas which could last Poland some 300 years.

The US has become a global leader in the production of natural gas extracted from shale, boosting its energy security, driving down prices and making it an exporter.

Poland hopes it could reap similar benefits. However, experts insist that with exploration in the very early stages, it is too soon to gauge commercial viability.

Ex-communist Poland covers 30 percent of its gas needs from domestic resources.

“The issue of shale gas has become an important element of Polish-American relations, strengthening the extra-military importance of the United States for Poland’s security,” Foreign Minister Radoslaw Sikorski told the conference.

He said Obama’s visit was “an excellent occasion to deepen Polish-American energy relations and to identify further joint action on shale gas.”

France recently banned shale gas exploration amid environmental concerns over hydraulic fracturing used in gas extraction.

“We know that in some countries there are initiatives to ban shale gas exploration, but those who are planning this we say ‘be not afraid’, new technologies always bring some new challenges,” Sikorski added.

“If we would let fear guide us, we could not invest in nuclear energy and a medium-sized country such as France or Poland needs both,” he added, referring to plans by Warsaw to build Poland’s first nuclear plant by 2020.

Source: Yahoo! News

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May 13

On Wednesday, May 11, 2011, regulators in the lower house of the French National Assembly voted to pass legislation prohibiting the hydraulic fracturing technique for exploration and exploitation of unconventional oil and gas.  The legislation now moves to the French Senate for discussion on June 2, 2011.

The senate discussion date falls one day after the expected delivery date for the report on the development of shale gas operations, commissioned by the French government in February of this year.  An interim report, which was largely favorable towards exploration for unconventional oil and gas, was released by the commission last month.  Click here for information on the interim report.

The bill does not appear to prohibit shale gas exploration at large in the European nation, but rather is specific in addressing the use of hydraulic fracturing in such operations.

For more information on the French National Assembly’s passing of this legislation, visit Natural Gas for Europe.

Click here to download an English translation of the French interim report.

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May 06
The Financial Times published an article today, discussing a new report on shale gas’ energy implications for Europe:

Unconventional gas resources in Europe have the potential to reshape the continent’s supply, reducing its dependency on Russia and the Middle East, says a report out on Friday.

The new study, by the European Centre for Energy and Resource Security (Eucers), assesses the economic and geopolitical implications of recent estimates.

It says: “In theory … Europe’s unconventional gas resources might be able to cover European gas demand for at least another 60 years.”

If only a fraction of the potential unconventional gas resource becomes available for European and other energy markets before 2020, the study says, it will offer the EU another domestic source, enabling greater diversification of gas demand and imports, as well as improving energy security for decades.

Read the full article at FT.com.

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Apr 28

Poland has 5.29 trillion cubic meters of recoverable shale gas, the largest reserves in Europe, according to the United States Energy Information Administration (EIA).

The estimate is one of the most optimistic forecasts so far. Previously, the Wood Mackenzie company estimated Polish shale gas resources at 1.4 trillion cubic meters and Advanced Resources International at 3 trillion cubic meters.

Polish experts have so far largely stopped short of predicting a shale gas bonanza, but agree the gas is there. They add that even if only 10 percent of the amount specified in the most cautious estimates can be extracted, that would mark a breakthrough for the Polish energy market.

The Energy Information Administration lists Poland among countries where shale gas production will be of key importance to the national energy mix. It adds that Poland has extra motivation to invest in shale gas because it is dependent on natural gas imports and has a well-developed network of gas pipelines, which will facilitate deliveries of natural gas to recipients.

Poland was in 10th place on a EIA list of 32 countries with the world’s largest shale gas resources. Poland’s current demand for natural gas is 14 billion cubic meters a year.

According to the Polskie Górnictwo Naftowe i Gazownictwo (PGNiG) oil and gas extraction corporation, shale gas production could begin in Poland in three years. The company has conducted successful test drills near Wejherowo in Pomerania province and is examining samples obtained in the test.

Foreign companies which have been searching for shale gas in Poland are a little more cautious in their predictions and believe that production on a larger scale will not be possible until five years from now.

Holders of licenses to extract shale gas in Poland include American corporations Chevron and ExxonMobil. The BNK Petroleum and Lane Energy companies have carried out their first drills.

The United States tops the world statistics in terms of shale gas production. According to the Energy Information Administration study, last year the United States produced 137 billion cubic meters of shale gas, 50 percent up on 2009. The Energy Information Administration forecasts that by 2035, shale gas will account for almost 50 percent of annual natural gas production in the United States. Last year, it accounted for 23 percent.

Source: The Warsaw Voice

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Apr 22

French Shale Report Favors Assessment Drilling – Update (2)

A preliminary report on the economic issues, social and environmental of shale gas and shale oils in France, is favorable to assessment drilling, but under strict controls.

The report concludes that banning exploration before the reserves are assessed could be detrimental to France’s economy and labor market.

French shale oil and gas fields are potentially some of the most promising in Europe but remain “largely” unknown due to a lack of exploration, and the potential commercial viability of the fields is also unknown because of a lack of tests, the report said.

But “the interest shown…by major oil and gas operators and North American companies which are specialized in extracting shale hydrocarbons, as well as the investments they plan to make, show the scale of the potential,” said the authors of the report, most of them mining engineers working for state agencies.

If the shale oil and gas reserves are found to be important they could allow France to substantially reduce its hydrocarbon imports and its trade deficit, the report also pointed out.

The report commissioned by the Minister for Ecology, Nathalie Kosciusko-Morizet, and her colleague the Minister of Industry and Energy, Eric Besson was initially announced in February, following concerns by environmentalists and local authorities over the process of hydraulic fracking involved in the extraction process.

Extracting techniques still need to be improved, as far as their impact on the environment is concerned, the report said, suggesting a European study of fracking techniques be conducted and that the drilling of a limited number of experimental wells to assess the impact on the environment be conducted under strict supervision of a national scientific committee, with the involvement of experts from BRGM (Bureau de recherches géologiques et minières), Ifpen (Institute of new energies),  Ineris (National institute of the industrial environment and risks) and from abroad.

It also said that before the environmental impact is assessed, no fracking should be conducted at all.

“In two to three years, the acquired experience in our country as well as in Europe and in North America will allow to make rational decisions over the opportunity to extract oil and shale gas in France,” the report concluded.

A final report is expected by June.

France awarded three shale gas exploration licenses in March to Total SA, Schuepbach Energy LLC, and GDF Suez. Toreador Resources Corp. in partnership with Hess and Vermilion Energy Inc. are among companies which have licenses in the Paris Basin to explore for oil trapped in shale rock.  Continental Resources Inc., Jordan Oil & Gas, and Realm Energy International were amongst companies reported to have made application for territory in the area.

Source: Natural Gas for Europe

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Apr 07

Poland has 5.3 trillion cubic meters of shale natural gas, equal to more than 300 years of the country’s annual gas consumption, the Energy Information Administration of the U.S. Department of Energy said in a report.

It’s the largest amount of shale gas for any European state in a study of 32 countries, the agency said.

This is more than the most optimistic estimates available so far. Experts predicted earlier Poland had deposits of between 150 billion and 3 trillion cubic meters, but some Polish officials warned exploration may be costly and dangerous for the environment.

Companies are now drilling in Poland, but it will take at least a year to determine if shale gas production will be commercially feasible.

The U.S. embassy and the Polish foreign ministry are set to host a shale gas conference in Warsaw this May. At last year’s event, Polish Foreign Minister Radoslaw Sikorski said production of shale gas in Europe “may change its energy paradigm,” and for Poland it could diminish Russia’s importance as supplier of energy.

Source: Wall Street Journal

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