The collapse of hopes for European shale gas (Foreign Policy, USA)

 Shale gas continues to haunt the global geopolitics, but the latest news about the failures of its production in Europe indicate that this tsunami affects mainly the United States.

The boom in shale gas production in the U.S. has shaken the foundations of geopolitics, defying the Russian control over the supply of gas to Europe, and by threatening to use the more dangerous for the environment fuels worldwide. Many believed that the next in line delivery of large volumes of shale gas in Europe, especially in Poland. This is even more complicate the life of Vladimir Putin, with his not based oil and gas authority.

 

 

 

But yesterday, ExxonMobil announced that its drilling efforts in Poland led to positive results, according to Bloomberg reporter Joe Carroll (Joe Carroll). Exxon, the world's largest privately owned gas company, said its two exploration wells in Poland did not give enough gas to mining was considered viable. And it is — is not the first bad sign in the European gas prospects. As reported this morning its customers the company Bernstein Energy, for the last two years of exploration wells companies Lane Energy, 3Legs Resources and BNK Petroleum in the north-west of Poland were given only small amounts of gas. Last year, Shell announced a similar negative results in Sweden and in the 2010 Exxon announced the failure of his project for the extraction of shale gas in Hungary. In addition, France and Bulgaria have banned hydraulic fracturing technology, which is used to produce shale gas.

However, for Poland this story, apparently, is not over yet — be the reserves of shale gas in the country is estimated at 187 trillion cubic feet, Warsaw and tries to keep the foreign gas companies by offering them favorable terms. In his article, Carroll quotes Gianna Bern (Gianna Bern), head of Chicago-based Brookshire Advisory:

"Exploration of shale gas — it is a business with high costs and high risks, and the Polish market in this industry so far only develops. Poland still at the very beginning, and it has a potentially large reserves. "

This stream of bad news — last week the U.S. Energy Information Administration lowered its estimate to be the volume of shale gas production in the U.S. by 40% — that should reduce the irrational enthusiasm that now surrounds the topic of shale gas.

At the moment, it makes sense to look to China, which desperately tries to start production of shale gas. As for Europe, if in Poland as a result of shale gas will not suitable for commercial production, the main focus here will move to the east, to Ukraine, where corruption and vulnerability to interfere with Russia to develop its oil and gas reserves.

All this means that shale gas will not flow from Europe for many years. This also means that in the near future, Putin and his "Gazprom" will be one less problem.

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