Shale Gas in the Czech Republic: Interview with Jakub Groszkowski

Natural Gas Europe was pleased to have the opportunity to speak with Jakub Groszkowski of the OSW (Centre for Eastern Studies) on the Czech Republic and Central Europe.  Mr. Groszkowski is co-author of the recent work Shale gas in Bulgaria, the Czech Republic and Romania. Political context - legal status – outlook.

What is an estimated size of deposits in the Czech Republic. Can numbers explain the position of the authorities in Prague, which seem to be moderately interested in the development of shale gas?

There are hardly any precise and reliable estimates of shale gas reserves in the country. All we know is that some areas of the Republic can be considered promising for the exploration drilling. However, the public debate is dominated by the belief, that a potential production would merely satisfy a few percent of domestic consumption and even supporters of shale gas exploration do not challenge this point of view. Obviously, low estimates would strengthen arguments of shale gas ban supporters.

In your latest paper you argue that Prague does support development of shale gas, but… in Poland rather than in the Czech Republic. Why do you think so, and what is your opinion on such a cautious strategy?

Any large scale and low price extraction of shale gas in Poland would be very beneficial for the whole Central Europe, especially because investments in transmission infrastructure - planned and already under construction pipelines - would facilitate a cross-border transport. Experts in the Czech Republic are well aware of this fact and a similar approach can also be seen in talks with the Czech authorities. In addition, some Czech companies, such as MND, are involved in exploration in Poland. This Czech strategy does not have a significant impact on the situation in Poland at the moment. It would have, if the Czech authorities decided to ban mining in the country and began to get involved in the anti- shale campaign at the European level. Then the Polish authorities would find themselves under increasing pressure from environmental circles. As long as the Czech reluctance is nothing more than just a media story, I do not see any particular threat for the operations in Poland.

The large part of the Czech Republic territory is one of the most polluted and industrially transformed areas in the EU, mainly due to coal mining. For long winter weeks,  citizens of some towns, such as Ostrava or Karvina, are advised not to leave their homes, if not necessary. How effective are environmental arguments against replacing coal with shale gas?

Extensive mining carried out in the times of the communist regime in Czechoslovakia, left a distinct mark not only in environment but also in the way of thinking. Many inhabitants of the areas particularly affected by mines are opposed to any kind of industrial investment in their neighborhood. It cannot be surprising, taking into consideration what happened in the past. Those negative experiences are reflected in the quite strict environmental protection regulations on the one hand, and on the other, in the attitudes of non-governmental organizations, which are very determined to defend the nature. In addition, some of the activists capable of putting their own interest above the interest of the nature are not in short supply in the  ranks of these organizations. The Czech government must keep this fact in mind, when taking a decisions concerning shale gas. 

To what extent, in your opinion, these decisions, future regulations now being drafted in Prague, can make shale gas production in the country too expensive or prevent it altogether?

This question is difficult to answer, because a lot will depend on when drilling works in the Czech Republic start and the what the regulatory conditions for exploration are. Assuming that in the meantime production starts in Poland, the Czech delay could even be beneficial. Oil and gas companies would already have technology in place and would comprehend the geological parameters typical for this part of the world. On the other hand, the Minister of Environment, who is preparing a moratorium wording, suggested that any permission to drill would be accompanied by the numerous environmental requirements. If these regulations turn out to be too strict, it will probably discourage many companies from starting exploration works in the country.

According to some experts, an increase in gas production in Central Europe may be of a crucial importance for the interests, and the balance of power between the United States and Russia in this region. Can you see any signs of dedicated diplomatic activities of Washington and Moscow in the Czech Republic?

Shale gas is practically non-existent in official relations of the Czech republic with the United States and Russia. Much more important issue is the tender for the construction of two nuclear units at the power plant in Temelín, announced by the state-owned utility CEZ.  Companies from the U.S. and Russia are competing for this order. It is reasonable to assume that the scale of possible shale gas production in the Czech Republic is too small for Washington and Moscow to engage in the game. But I have no doubt that the U.S. and Russian embassies in Prague, are closely following all of the domestic maneuvers around shale gas.

There are frequent references to Poland in the debates in Bulgaria, Romania and the Czech Republic. According to the Eurobarometer, Poles are exceptionally sympathetic to shale gas. Other surveys indicate, that the most important reason for this is a strive for energy independence. Do you think, that a cooperation between Central Europe states could strengthen their position towards mighty Russian and American companies?

Shale gas has just recently become an issue of the public debate in these countries, while regulatory regimes were not prepared for granting licenses, exploration works, production and so on. Each of Central European countries began to regulate these issues in their own way and at a different pace. In practice, the cooperation of these countries vis-a-vis companies can be difficult. This does not mean, however, that their representatives should not debate and look for common solutions.