Romania Explores Shale Gas Possibilities
Shale gas has been on the agenda of the talks between Romanian and U.S. officials during the recent visit of the Romanian authorities to Washington.
A Foreign Ministry press release, issued after the meeting with the U.S. officials, says "the possibility of an involvement of the United States in providing expertise for joint projects for shale gas exploration and the support of the American party for energy and alternative routes such as the South Corridor" was discussed.
Romania and shale gas has drawn the attention of Chevron Corp, as well as Hungary's MOL.
In July 2010, Chevron submitted winning bids for three blocks in SE Romania, totaling 2,700 square kilometers. The company also has exploration rights for a block in Barlad (Eastern Romania); the Americans' target is to find shale gas.
"There are no accurate data about Romania's shale gas potential, but judging from our current knowledge of the country's geology, there might be sufficient non-conventional gas for 60 years, about 1,000 billion cubic meters. We are in the early stages of research and do not know whether all this gas can ever drilled," says Gheorghe Buliga, chairman of the Society of Petroleum and Gas Engineers.
Romania's Energy Strategy for 2011-2035 shows that by the end of this year, the country will have reserves of 60 million tons of oil and 134 billion cubic meters of natural gas left. At the current consumption rate they will be exhausted in 15 years unless major deposits are discovered.
The latest survey by U.S. Energy Information Administration shows the potentially recoverable shale gas resources amount to almost 540 million cubic meters in Romania, Hungary and Bulgaria, based on the data collected in the region. The survey considered 32 countries. The estimates of Buliga and of the U.S. Energy Information Administration differ tremendously, but both indicate a potential that is attractive to oil companies.
Despite the positive economic impact a potential shale gas discovery might have on the Romanian market, there are also great risks.
"There is a really serious impact on the environment, much more serious than the drilling for conventional resources. Just think that this gas is pushed up by injecting huge quantities of water and sand deep underground to fracture the rock that contains the gas," warns Valentin Batistatu, geologist and scientific secretary with the Petroleum and Gas University of Ploiesti.
With thanks to ZF English a service of Ziarul Financiar - Romania's leading economic newspaper