Polish Shales: Slipping and Sliding (Away?)

At the apex of optimism in 2010/11, Poland’s shale resources were to make it the “The Kuwait of Europe.”

But it's been all downhill since. 

Majors explorers Exxon Mobil, Marathon and Total 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.

Thursday saw another step backwards, with Poland cutting estimates for shale gas exploration wells activity.

Environment Minister Maciej Grabowski said he expected just over 80 exploratory wells would be drilled this year.

"By the end of June there had been 64 exploratory shale gas wells drilled in Poland. A further 20 are planned (for this year)," Grabowski said in an interview with Reuters.

The figure is down from the 100 wells that Grabowski projected less than two months ago.

"Those are only estimates. Some of the wells are mandatory, but some of them are optional. In the process of concession extensions, new declarations (of intent to drill wells) might appear as well", he added optimistically.

In December, Piotr Wozniak, Poland’s Deputy Environment Minister and Chief National Geologist, responsible for drafting laws setting out regulations for the development of the shale gas industry and for licensing procedures was removed by Grabowski, who was appointed by Prime Minister Donald Tusk just a month earlier  to replace the then Environment Minister Marcin Korolec.

Who will be the next to deliver a blow to The European Kuwait?