Ukraine's Shale Play for Energy Independence

Ukraine, which sits atop four major, largely unexplored deposits, sees shale as potentially altering the geopolitics of natural gas.

Although Ukraine already produces some natural gas by conventional means, it remains highly dependent on imports from Russia’s state-owned gas monopoly, Gazprom, the world’s biggest producer.

Twice in the last five years Gazprom has halted supplies to Ukraine in politically tinged pricing disputes. By finding a greater source of its own natural gas, Ukraine hopes to reduce Russia’s leverage in that relationship.

The country is eager to do business. The Ukrainian Parliament has passed investor-friendly legislation aimed at opening its domestic natural gas market to shale gas producers.

Exxon Mobil signed a memorandum of understanding with the Ukrainian government earlier this year, formalizing negotiations to begin exploring or drilling. Ukrainian officials are now in similar talks with Chevron and Shell.

Nobody pretends to know how much gas they might hold. But as energy companies speculate on Ukraine’s potential, they point to the deposits that lie under Fort Worth, Texas, the renown Barnett Shale.

Read the Full Article from the New York Times HERE