Saturday 28 February 2015

BIG SETBACK FOR EU SHALE GAS

Putin’s Victory As Chevron Gives Up All European Shale-Gas InterestsThe Wall Street Journal, 21 February 2015

Selina Williams

In a setback to Europe’s nascent shale-gas industry,Chevron Corp. said Friday it is relinquishing its interests in shale-gas concessions in Romania, the U.S. oil giant’s last shale-gas project in Europe.

It follows Chevron’s announcement last month that it was quitting shale-exploration activities in Poland. Last year Chevron terminated shale-gas agreements in Lithuania and Ukraine.

“That leaves Romania, where we are in the process of relinquishing our concession interests,” a Chevron spokesman said.

The spokesman didn’t say why Chevron was giving up the Romanian concessions.
As in many cases with energy projects, Chevron negotiated a contract with the government for the concessions, which the company is now relinquishing.

Chevron’s pullback on European shale development will be disappointing to some European governments that have been eager to replicate the U.S. shale-gas boom, hoping to reduce reliance on imported gas supplies, in particular from Russia.

But progress has been slow. Disappointing exploration results in Poland and local opposition to hydraulic fracturing, the technique used to release the gas from the rock, have stymied efforts elsewhere.

Countries with promising geology, such as France and Germany, have imposed a moratorium on fracking.

In the U.K., which lifted a moratorium on fracking at the end of 2012, companies have to apply for as many as seven permits and go through a lengthy planning application process before they can drill and frack. So far in Britain, only a handful of wells have been drilled and just one fracked in 2011.

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