27 January, 2012

Shale gas is not warm to Europe

Europe has less chance of following the example of the United States reduce its dependence on Russian energy supplies from shale gas. Encountering resistance to environmentalists, the government of individual countries have already begun to deny oil and gas concerns in such projects.

The Bulgarian government on Tuesday revoked a license for geological exploration issued in June 2011, Chevron to search for shale gas production Novi, which, according to various estimates, can contain between 300 billion to 1 trillion cubic meters of gas. One of the main reasons for revocation of the license are environmental protests: last week in Bulgaria have been thousands of demonstrations against the shale gas. According to the demonstrators, used for the extraction technology of hydraulic fracturing contaminate groundwater.

As the Minister of Economy and Energy of Bulgaria Traicho Traikov after a meeting of the government, Chevron was allowed to continue the exploration for oil and gas in north-eastern Bulgaria, but if you use benign methods of drilling. "The idea is that they still have the right to search for oil and gas, but without using the disputed technology, hydraulic fracturing," - said Mr. Traikov, noting that the Bulgarian parliament intends to introduce a complete ban on hydraulic fracturing on land and in the territorial waters of Bulgaria .

Shale gas production by fracturing involves injecting into the reservoir under high pressure water with special granules and chemicals. The water pressure destroys the porous shale, and the pellets do not give the breed close up after pressure reduction. As a result of natural gas in the pores of shales is released and can be pumped to the surface. The disadvantage of technology in shale gas production is the rapid decline in well production, suggesting an active drilling new wells.

Until recently, shale gas constrained by the relatively high cost of drilling. In recent years, reducing the cost of drilling and new fracturing technology have led to widespread shale gas production in the U.S. in 2009, shale gas was there 14% of the total production in 2010, U.S. gas production ahead of Russia. As a result, traders bought liquefied natural gas (LNG) for the American market, began to send him to Europe, bringing down prices. In 2009, Qatari LNG individual lots were sold in Europe at a price three times lower than the gas, "Gazprom" long-term contracts. This forced gas producers significantly change their plans - in particular, "Gazprom", revising the forecasts of its presence in the U.S. market, was forced to move the timing of the Shtokman field.

In the USA during the period of rapid growth of the U.S. shale gas "gas revolution" was accompanied by a mass of intrigue, rumor and speculation. Experts from the producing countries, including Russia, talked about the next "bubble" in the gas market, comparing the shale gas at one time as popular, but zaglohshim project of gas produced from coal seams. U.S. officials have admitted the facts alleged overstatement of production levels, calling to check the figures provided by the mining companies. But the most important factor limiting production are environmental concerns. It was found that the benefits of shale gas, the ability to get it in close proximity to consumers, small towns scattered across the U.S., instead of natural gas pipelines, are accompanied by significant disadvantages. The chemicals injected into the reservoir began to be detected in groundwater and drinking water.

Europe is on the same path: from the euphoria of the expected decline in energy prices and the prospects for energy independence from countries supplying gas, primarily in Russia, to minimize production of the protests against environmental pollution. In early 2011, after some hesitation soil in Blackpool, fracturing technology (and with it, and shale gas) has banned England. In July, France followed suit. Russian specialists from the Institute of Oil and Gas Academy of Sciences suggest that the geology of Western Europe will not allow shale gas to become a serious competitor to supplies from Russia. However, in some European countries still believe otherwise - Poland, for example, intends to start production of shale gas in 2014-2015, Romania and Serbia intend to start exploration work in search field slates.

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