Chevron to eastern Europe: We might be able to help you with that fracking Russian-dependence problem

posted at 8:41 pm on July 25, 2013 by Erika Johnsen

Despite their misbegotten and expensive quest to forcibly restructure their energy sectors with subsidies and special treatment for what they’ve decided are so-called green energies (and they’ve got the higher electricity prices to prove it), plenty of European countries — including Germany and France, the eurozone’s two largest economies — have roundly and robustly refused to encourage energy companies to institute the practice of drilling for oil-and-gas supplies via hydraulic fracturing. Now, of course, that the evidence is mounting that both natural gas and fracking are even cleaner and safer than everyone first thought, Europe is years behind the United States in terms of infrastructure — and while Europe might not have the quite the available supply of locked-up natural gas as the United States, there’s only one way to find out.

Plenty of countries are still reluctant to do so, but Chevron is wondering if they can’t convince a few of them to let them take another crack at it. Via Bloomberg:

Chevron Corp. (CVX) is betting it can win over eastern Europeans with the idea of energy independence even after dry wells and government delays led Exxon Mobil Corp. and Talisman Energy Inc. (TLM) to scrap efforts to tap natural gas deposits in Polish shale.

Bringing shale drilling to Europe from North America promises to help the region ease years of dependence on Russian fuel and hurts the Kremlin’s ambition to secure the country’s future as an energy superpower. Use of hydraulic fracturing, or fracking, upended the U.S. gas industry, which overtook Russia as the biggest producer, driving prices to a decade-low.

“This resource could certainly enhance energy security within Europe and also bring enormous economic benefits,” said Ian MacDonald, Chevron vice president for Europe, Eurasia and the Middle East. “Chevron believes that upon learning how these hydrocarbon resources can be explored for and developed safely, the governments and citizens of central Europe will be supportive.”…

Chevron has leased or licensed for exploration 5.6 million acres in Poland, Ukraine, Romania and Bulgaria, an area the size of New Jersey. Its joint venture in Lithuania has a license for about 600,000 acres, and Chevron is applying for another 450,000. In Ukraine alone it agreed to spend $400 million on exploration. Royal Dutch Shell Plc (RDSA) won rights to explore for shale gas in the Yuzivska field in Ukraine’s Kharkiv region in May 2012, and signed a production sharing agreement in January.

Breaking up Russia’s stronghold over gas supplies and their subsequent political influence in parts of Europe is one of the major geopolitical arguments in favor of the United States finally allowing companies to export more natural gas, as well — let’s get this fracking party started already, shall we?


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IRS to target Chevron in 5.4.3 …

ShainS on July 25, 2013 at 8:47 PM

Putin to Chevron…’Yeah, get it going and then all your assets are belong to us’

BigWyo on July 25, 2013 at 8:49 PM

Wonder if this could restart the “Cold War”?

listens2glenn on July 25, 2013 at 8:49 PM

BigWyo on July 25, 2013 at 8:49 PM

.

Wonder if this could restart the “Cold War”?

listens2glenn on July 25, 2013 at 8:49 PM

.
Never mind ….. BigWyo answered that.

listens2glenn on July 25, 2013 at 8:51 PM

I like it!

Bmore on July 25, 2013 at 8:51 PM

Barky will become flexible on this issue for his Communist buddies.

Bishop on July 25, 2013 at 8:52 PM

Moving to Moscow!

ctmom on July 25, 2013 at 8:53 PM

I can see a day when I would emigrate to eastern Europe for their freedoms that we lost in the US.

losarkos on July 25, 2013 at 8:55 PM

Poland and Ukraine are who need it the most and where, I’m guessing, there’d be less enviro-crankism. And then I Binged this story.

andycanuck on July 25, 2013 at 8:55 PM

Quickly goes to buy Chevron stock.

rbj on July 25, 2013 at 8:58 PM

Obama declares war on Texas

VorDaj on July 25, 2013 at 9:06 PM

http://freebeacon.com/edward-snowden-seeking-to-join-kgb-veterans-group/

Edward Snowden Seeking to Join KGB Veterans Group

jp on July 25, 2013 at 9:11 PM

…frack em!

KOOLAID2 on July 25, 2013 at 9:19 PM

http://freebeacon.com/edward-snowden-seeking-to-join-kgb-veterans-group/

Edward Snowden Seeking to Join KGB Veterans Group

jp on July 25, 2013 at 9:11 PM

in a July 18 letter

” The message was signed “Edward Snowden” and the message was traced to an IP address in North Carolina.

Snowden was in Russia in July, not North Carolina.

sharrukin on July 25, 2013 at 9:21 PM

sharrukin on July 25, 2013 at 9:21 PM

he is from NC, likely has friends/family in contact with

jp on July 25, 2013 at 9:29 PM

he is from NC, likely has friends/family in contact with

jp on July 25, 2013 at 9:29 PM

And why would he use an American IP address to send such a message? Why wouldn’t he simply send a letter or an e-mail from where he is? Or phone them directly?

Instead he phones a friend in the US to pretend to be him… sending an E-mail to Russia where Snowden already is?

sharrukin on July 25, 2013 at 9:36 PM

Obama declares war on Texas

VorDaj on July 25, 2013 at 9:06 PM

Historically, not a good idea.

Meremortal on July 25, 2013 at 9:45 PM

Poland and Ukraine are who need it the most and where, I’m guessing, there’d be less enviro-crankism. And then I Binged this story.

andycanuck on July 25, 2013 at 8:55 PM

I’m hopeful to see this work in Ukraine and interested in how it goes in the leadup to the 2015 Presidential election. Their current government has been moving the country closer to Russia through these sorts of economic ties and isn’t afraid to pull Obama-like stunts to help his cronies in the private sector.

Vitali Klitschko meanwhile has been a vocal supporter of expanding domestic production of shale gas and economic growth with something like this could win over some nationalists when it comes to dealing with Western companies.

Gingotts on July 25, 2013 at 10:13 PM

IRS to target Chevron in 5.4.3 …

ShainS on July 25, 2013 at 8:47 PM

Oh yeah, can’t have that. Need to shut that s**t down toot sweet.

WitchDoctor on July 26, 2013 at 1:04 AM

During th ecold war some relatives from Poland told us the number one joke in Poland:
What is a Polish Cow?
One that grazes in Poland and is milked in Russia.

This sounds like our tax system here-those of us that work hard to take care of our cow that is.

Don L on July 26, 2013 at 4:12 AM

But no, Russia is not secretly funding the anti-fracking crowd here. Why would they?

/

Kafir on July 26, 2013 at 8:06 AM

Why do the clueless (like Erika) insist on spelling it FRACK? Why did the media start all this incorrect spelling? Because of the way it sounds, that is why. A hard ck rather than a softer c sound makes a LOT of difference to those who don’t know anything about the biz, which is 99.99% of the public and 100% of bloggers.

http://businessreport.com/article/20130725/BUSINESSREPORT0112/130729843

Kermit on July 26, 2013 at 11:15 AM

Way to go for Chevron, I dont know if it is something about their corporate culture but their employees are as a whole really kind and pleasant to talk to and work with.

Imrahil on July 26, 2013 at 12:18 PM