Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
The Big Short 2020 – World Pushes Credit/Investments Into Risk Again - 11th Jul 20
The Bearish Combination of Soaring Silver and Lagging GDX Miners - 11th Jul 20
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Poland Gives Green Light to Massive Natural Gas Fracking Efforts

Commodities / Natural Gas Feb 03, 2012 - 01:12 AM GMT

By: OilPrice_Com

Commodities

Best Financial Markets Analysis ArticleThere is perhaps no more controversial energy source after nuclear than "hydraulic fracturing," or "fracking," of subterranean shale deposits containing pockets of natural gas.

While the process can liberate previously unusable sources of natural gas, political, environmental and scientific concerns have risen along with production, as evidence mounts that fracking is responsible for everything from polluting subterranean aquifers to causing regional earthquakes.


But no matter - during his 24 January State of the Union address, U.S. President Barack Obama wholeheartedly embraced hydraulic fracturing without even mentioning it, telling his audience, "We have a supply of natural gas that can last America nearly 100 years. And my administration will take every possible action to safely develop this energy."

Tree-hugging environmentalists and seismologists be damned - according to Obama, the full exploitation of these resources will "support more than 600,000 jobs by the end of the decade," no small consideration in an election year.

Across the Atlantic, European Union members, particularly in Eastern Europe, are considering the benefits of fracking, though coming to differing conclusions.

On 18 January 166 members of Bulgaria's Narodno Sabranie (National Assembly) 240 parliamentarians voted to impose an indefinite ban on shale gas exploration and extraction in Bulgaria using hydraulic fracturing or other similar technology. Six National Assembly members voted in favor of the practice, along with three abstentions.

Poland has taken a different tack, noting that thanks to fracking of natural gas shale deposits, in 2009 the United States became the world's largest gas producer, overtaking Russia and driving down prices.

The day after the contentious Bulgarian vote Polish Treasury Minister Mikolaj Budzanowski told reporters that Polish companies with permits to explore for shale gas in the country must intensify drilling to start production of the fuel by 2014 or 2015, with Polish companies each drilling 12 wells and performing 12 hydraulic fracking operations annually.

The reason for such enthusiasm?

Simple, said Budzanowski - Poland's shale-derived gas could be as much as 50 percent cheaper than the Gazprom natural gas Poland now receives from the 2,607 mile-long Yamal-Europe natural gas pipeline, which currently costs Warsaw more than $500 per 1,000 cubic meters (tcm)for West Siberian output.

Seeking to cut the expensive Russian natural gas umbilical cord, Poland has high expectations for its projected indigenous production shale natural gas, as it currently depends on Russian Gazprom supplies for nearly two-thirds of its annual gas consumption of 14 bcm, estimating its domestic reserves of conventional natural gas at some 100 bcm, which would only meet domestic needs for slightly more than seven years.

In contrast, the U.S. Energy Information Administration has estimated Poland could have the biggest shale natural gas reserves in Europe, amounting to some 5.3 tcm.

No wonder Warsaw is interested.

And, letting no grass grow under their feet, the Polish government has already granted more than 100 exploration permits to companies, including U.S. energy giants Chevron and Exxon Mobil.

Injecting a bit of nationalist pride however, Budzanowski reiterated an earlier appeal for state-owned utilities to participate in developing shale natural gas extraction. Leaving reporters in no doubt as to the importance that the Polish government placed on the rapid ramping up of shale natural gas production Budzanowski added, "I will expect the Treasury-owned companies to present plans to drill as many wells as possible within the next two years and this is the most important task from the perspective of (the nation's) shale gas policy."

Poland's love affair with fracking began last year. On 18 September 2011 Polish Prime Minister Donald Tusk told an audience in Lubocin, northern Poland, where shale natural gas exploration had begun, "Being a moderate optimist, the commercial exploitation of shale gas will begin in 2014" before adding that Poland could achieve "gas security" by 2035. Referring to the larger geo-strategic implications of such policies Tusk added, "After years of dependence on our large neighbor (Russia), today we can say that my generation will see the day when we will be independent in the area of natural gas and we will be setting terms" before insisting that he had been "assured that well conducted exploration and production would not pose a danger to the environment."

Accordingly, whatever the ultimate fate of fracking in the U.S. and cautious European states like Bulgaria as additional environmental and scientific studies about the practice are conducted, Poland seems for better or worse to have firmly embraced the practice for the foreseeable future.

One can only hope that it is a judgment call that they will not soon have cause to regret in what in what Foreign Affairs Minister Radoslaw Sikorski has called "the gold rush of the 21st century."

Coincidently, on 11 January Waldemar Tyl of the Warsaw Appeals Prosecutor's Office announced that seven people, including government officials, have been charged with corruption during the granting of licenses for shale gas exploration, adding that bribes of tens of thousands of dollars apparently changed hands over the second half of 2011 alone.

Surely a coincidence, like those earthquakes and aquifer pollutants.

Nothing to see here, move along.

Source: http://oilprice.com/Energy/Natural-Gas/Poland-Gives-Green-Light-to-Massive-Fracking-Efforts.html

This article was written by Dr. John CK Daly for Oilprice.com who offer detailed analysis on Crude Oil, Geopolitics, Gold and most other commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com

© 2012 Copyright OilPrice.com- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules