Monday, 20 January 2014
Poland - End of the euphoria as fracking firms pull out.
Quite clear now that the nonsense talked about the REALISABLE shale gas resource in Poland was total nonsense. The cost of extraction depends upon three factors: 1. The geology of the land 2. The existing infrastructure( and population density which in mainland Europe is in the order of 3.5x that of the US ) and facilities available to frackers in the host country and 3. Regulatory, environmental constraints. In Poland the bulk of shale gas lies at a depth of almost four kilometres - often beneath overhanging rock formations making drilling difficult ( in the UK the bulk of the resource is to be found at a depth 2.5x greater than in Pennsylvania ). So, even though the country has adopted a mining code favourable to the extraction these other factors would appear to have defeated overall profitability.
Exxon, Marathon and Talisman have now all pulled out ( leaving not inconsiderable devastion in their wake ) not to mention a host of smaller 'front-end' prospecting companies.
UK fracking enthusiasts would do well to take all this on board. Of course, for many, including those in government the only objective is to attract the gullible and greedy and bang the share price up. After that, who gives a damn.
Article here for reference ( in French ) : http://www.sciencesetavenir.fr/nature-environnement/20140117.OBS2831/gaz-de-schiste-la-fin-de-l-euphorie-polonaise.html