Chevron Playing Long Game on European Shale

It could be years before energy major Chevron reaps benefits of European shale natural gas development, a senior executive has said. However he reiterated the company's commitment to shale exploration in eastern Europe.

Chevron began a shale gas exploration campaign in Romania in 2010 and completed seismic programs in 2011 before a ban was imposed last year. Prime minister Victor Ponta, a former opponent of shale mining, has changed his position since taking office.

“I am in favour of shale gas exploration in Romania as this will boost domestic energy resources and reduce our reliance on fuel imports from Russia,” Ponta said at the weekend in a television interview.

Chevron regional vice-president, Ian MacDonald, told newsagency Platts that the company's interest in European shale remained broad.

"Chevron has focused on Eastern Europe for shale gas as we wanted a position across the geological trend that covers Poland, Romania, Ukraine, Lithuania and Bulgaria," MacDonald said. "Exploration wells are under way but there is no fracking [hydraulic fracturing] yet."

MacDonald said any hydraulic fracturing campaign in the region was a few years off.

"But it might be 10-15 years for full commercialization," he said. "We are at the early stages of our shale gas activities in Eastern Europe."

See also: Chevron, Shale Gas and Romania: Interview with Tom Holst