US Ambassador Says Shale Gas Extraction could make Ukraine Energy Independent

Joint shale gas production with Shell and Chevron in Ukraine can make the country self-sufficient and energy independent.

U.S. Ambassador to Ukraine John Tefft said this during the sixth security forum "Security in an Insecure World" in Kyiv on Thursday, a UKRINFORM correspondent reported.

"In addition to Shell... we also hope that Chevron will start ending a production sharing contract in the near future... We believe that this can help Ukraine become self-sufficient and energy independent," the ambassador said.

In his speech, he also noted numerous positive effects from shale gas production for the U.S. economy.

"Shale gas brings us new jobs, lower prices for natural gas, lower electricity prices, as well as an increase in revenues to the federal, local and other budgets," Tefft said.

In addition, the ambassador said that continued low prices for natural gas make the United States a very attractive country in terms of investment. This particularly concerns various chemical and other industrial enterprises, which, requiring access to large amounts of natural gas, are entering the market of the country.

As UKRINFORM reported, in May 2012, Shell and Chevron won a tender to develop shale gas in the Yuzivska and Oleska areas in Ukraine. In January 2013, an agreement was signed between the government of Ukraine and Royal Dutch Shell. A similar agreement with Chevron is to be signed after this agreement is approved by local councils since the development of the area is in their competence.

Source: UKRINFORM