Shale in Poland: Another One Bites the Dust

Poland’s fairytale dreams to develop it shale gas resources to secure energy independence and reap hydrocarbon riches, placing the nation as the “The Kuwait of Europe,” has evolved into an enduring nightmare.

Today Chevron Corp, the leader in multinational efforts to develop shale gas resources in Europe, announced that it would not continue operations in Poland.

The US based company said the opportunities in Poland “longer compete favorably with other opportunities in Chevron’s global portfolio.”

Chevron joined explorers including Exxon Mobil, Marathon, ENI and Total, who have have packed their bags and left amid challenging geology, bureaucratic entanglements, delays in establishing fiscal and regulatory reforms, all topped off by a significant downgrade in estimates of shale gas reserves.

Chevron drilled five exploratory wells in Poland, however, the company’s efforts met with heavy resistance.  For 400 days, farmers and their families from Zurawlow and nearby villages blockaded a drilling site with tractors and agricultural machinery. Eventually, the company abandoned its plans for the site.

The announcement is the latest retreat in shale gas for Chevron, which with drew from Lithuania, and pulled out agreement for exploring the Oleska shale field in western Ukraine. The company is still analysing the data gathered through drilling and seismic testings of exploration in Romania. Romanian Prime Minister Victor Ponta commented last November that said that the country has no significant reserves of shale gas.

To date, sixty-eight shale wells have been drilled in Poland, with none presently in production.