Romania Establishes Centre for Excellence in Unconventional Gas
The Romanian National Committee of World Energy Council (CNR-CME) has inaugurated the European Centre for Excellence in the field of natural gas from gas-bearing shales.
The event saw the presentation of a research paper by CENTGAS on the potential of gas from gas-bearing shales and the presentation of the European and international context regarding the exploitation of energy resources.
The study “Resources of Natural Gas from Unconventional Deposits – Potential and Value” saw the participation of 43 experts from CNR-CME, most of them professors in the oil and gas field.
The findings of the study are directed for the benefit of the Romanian authorities with responsibilities in the energy field (Ministries, ANRM, ANRE) as well as non-governmental organizations, service providers, exploration and production companies, political parties, academics and universities. One of the target objectives of the study is to propose and establish a framework of measures or an action plan in order to start, as soon as possible, the exploration of gas-bearing areas and to establish their economic potential.
The study shows that Romania has significant potential for shale gas in the Eastern Carpathians, Moldavian Platform, Barlad Depresion (Scythian platform) and Romanian Plain (Moesian Platform), including the South of Dobrogea. These areas host gas bearing formations at depths of over 2.500 – 3.000 meters from which “shale gas” can be extracted. Besides the areas with highest potential, conditions for the presence of gas are also present in the Getic Depression, Pannonian Depression and Transylvanian Basin.
“The unconventional energy resources are an alternative form of energy. They are located in sedimentary deposits of various ages, usually deep in the Earth’s crust: shale and tight gas, heavy oil and oil shale, coal seam gas and, in some cold areas, in seas and oceans, natural gas hydrates” is shown in the report.
Romania's experience in drilling horizontal bores commenced in 1995 with bore 1 Clejani; a total of over 30 horizontal and guided bores were drilled between 2008 and 2012. The same method of horizontal drilling is being used when building shale gas bores. “Hydraulic fracturing in Romania, in order to increase the productivity of the wells recovering deposits present in low permeability geologic formations (sandstones, marl/sandy clay, etc.), has been used for 40 years, and hundreds of such operations have been performed successfully", reads the report.
The study indicates that Romania has proven natural gas resources for the next 10 to 15 years. In this context, “Romania with a recoverable reserve estimated at 1.444 billion cubic meters of shale gas is on the third place in Europe, after Poland (4.190 billion cubic meters) and France (2.879 billion cubic meters) and before Denmark (906 billion cubic meters).”
Ionut Purica, an energy expert for the Romanian Academy commented: “Today, the import invoice from gas is about 1.5% of GDP and is comparable with the defense budget, for example. But, if we become exporters we will have an income of 0.5% of GDP. Thus, a total contribution of 2% of GDP.”
Prime Minister Victor Ponta said that shale gas exploitation in Romania is a political decision that ensures the country’s energy independence and that shale gas can be the driving force of the country’s economy, as it has happened in the US.
“It is a political decision was made not only by Romania but also by Poland, Lithuania, if I remember correctly; because for us it is not a strictly economic problem […] it is the problem of being independent from an energy point of view. Meaning, not to be obliged to import gas. […] We are capable of being independent. Not only from Russia do we want to be independent and, furthermore, in our energy strategy we are taking into consideration the Republic of Moldavia because we hope that in a few years will have energy resources for Romania and for the Republic of Moldavia”, said Ponta.
George Epurescu, “Romania without Them” (www.romaniafaraei.ro) stated: “There are shale gas in Romania but their exploitation implies a supplementary cost when compared to classic exploitation. Shale gas exploitation is a combination of mining and gas extraction, the mining part being necessary for release of the gas. These costs, as well as the consequences on health and environment, are already seen in the USA and do not make shale gas economically efficient. Chevron makes no investments in Romania, but it has exploration/exploitation costs, which means it will not create jobs or related industries. These costs must be recovered in the selling price and are covered by the citizens. The environmental destruction seen in USA means that the exploitation area becomes bare, economic activities will not exist after the exploitation is over, that is in 10 years maximum.”
Cristian Parvan, general secretary of the The Businessmen's Association of Romania (www.aoar.ro) cautiously agrees with the Prime Minister’s statement: “Yes, if the price of shale gas will be equal to that in the US (?!). For now, natural gas exploited with high profit cannot be delivered at this price, IMF/EC/WB forcing the administrative increase of the price with 18% in 2014. All EU reports show that, for many reasons, the price of shale gas will be at least double to the US.
Parvan also points out that Romania is according to Eurostat , three times more inefficient than the EU average with losses in the energy system estimated at 4 billion US dollars annually (according to Deputy Iulian Iancu).
“Energy independence may be obtained if, first, we become more energy efficient (Regarding Romania’s energy independence, Epurescu says it is a subject not based on science. “Energy independence must be seen in a historic context. If, until 2011 Romania exported gas, suddenly we began importing […]. The lack of any energy strategy of the government confirms the suspicions. The civilized world is full of examples of correction of energy dependence by using alternative energies and by moving consumers to night in order to efficiently use hydro energy. The so called dependence is a myth because of the stupid talk of “experts” and government, when they pretend that Romania will export gas.”
Highlighting Romania’s significant unconventional gas potential, the authors of the CENTGAS report conclude that proceeding with systematic exploration and exploitation is an opportunity and a necessity of the moment, providing that modern technologies are implemented and an appropriate regulatory framework reducing potential risks to acceptable values is adopted.
"Considering the decrease in the production of hydrocarbons from the operational deposits, Romania has to explore and exploit new conventional and particularly unconventional oil and natural gas fields in order to meet the requirements in domestic consumption and maybe an additional quantity for export." states the report.
The representatives of social and environmental non-governmental organizations which opposing shale gas exploitation by hydraulic fracking technology do not share the optimistic view on the potential and future of shale gas exploitation in Romania.
Comments NGO activitist Epurescu: “In reality, shale gas exploitation in beneficial only for a small group, favored by the government and for a short period of time. On long term Romanians will have to beg for a glass of water.”
Read the Report: Resources of Natural Gas from Unconventional Deposits – Potential and Value
Text: Silviu Molnar