FT: Potential of shale gas continues to drive exploration

Little has disturbed the way of life in Pungesti in eastern Romania for decades. The remote town lies more than 300km from Bucharest, the capital, in one of Europe’s poorest regions, with the locals largely dependent on subsistence farming. Yet all this could be about to change.

The rocks beneath Pungesti are estimated to hold lucrative reserves of shale gas – a promise that has brought big business to town.

This includes Chevron, one of the world’s largest energy groups, which has secured a government licence to explore for shale gas in the region.

At stake is much more than just the future of Pungesti. The prospect of a large source of domestic energy is one that many governments in eastern and central Europe can only dream of today.

A discovery of large, commercial quantities of shale gas would significantly reduce their dependence on expensive imports, notably from Russia, potentially reshaping geopolitics in the region.  MORE