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John Daly

John Daly

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European…

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Bulgarian Assembly Votes to Ban Hydraulic Fracturing - For Now

Next to nuclear power, the hydraulic fracturing natural gas extraction technique, more familiarly known as “fracking,” is perhaps the world’s most contentious energy production method.

Bulgaria, a former Soviet satellite state, joined the North Atlantic Treaty Alliance in 2004 and the European Union in 2007.

Despite a 2010 World Bank report noting that Bulgaria imports 43.79 percent of its energy needs, the country has decided to give the controversial “fracking” procedure a pass.

The Bulgarska Telegrafna Agentsiia news agency reported that after a fractious debate lasting more than four hours, 166 members of the National Assembly 240 parliamentarians voted to impose an indefinite ban on shale gas exploration and extraction in Bulgaria using hydraulic fracturing or other similar technology.

Six National Assembly members voted in favor of the practice, along with three abstentions.

The parliamentarians voted on a motion put forward by Grazhdani za Evropeysko Razvitie na Balgariya (Citizens for European Development of Bulgaria, or GERB) which stated that the ban on the controversial method is indefinite and applies to Bulgarian territory and the adjoining territorial waters in the Black Sea, adopted in principle a draft moratorium proposed by RZS party leader Yane Yanev.

Yanev told reporters, "Our arguments are against the method of exploration and production (techniques) which use toxic, carcinogenic substances."

The vote represents a stunning reversal for the proponents of fracking, particularly from an East European country that imports more than half of its energy needs and has been locked in dispute for years with the major provider of its natural gas requirements, the Russian Federation’s state monopoly Gazprom.

Even more extraordinary is that the legislation passed in the face of fervent lobbying by the U.S. ambassador to Bulgaria, James Warlick.

In an interview with Bulgaria’s Nova TV prior to the vote Ambassador Warlick told viewers that Bulgaria needs to find the right way to regulate shale gas development instead of banning it, giving the example that while there may be a risk in operating nuclear power plants (NPPs), instead of being banned they are regulated and that this should provide a template as for how the shale natural gas issue should be handled.

Drawing on U.S. experience Ambassador Warlick continued that since shale gas extraction started in the U.S. the local price of natural gas dropped and now U.S. consumers pay nearly half the price paid by Bulgarians, who still rely on Gazprom imports. Playing the conspiratorial card Ambassador Warlick warned that calls for a comprehensive shale natural gas moratorium in Bulgaria have come not only from well-meaning but naïve environmentalists, but also from “circles” which have an interest in maintaining high natural gas prices.

In a rhetorical flourish Ambassador Warlick added, “If I were a Bulgarian, I would want to know whether there is shale gas here.” Ambassador Warlick then played the employment card, which is currently high profile in the U.S. presidential debates, noting that U.S. company Chevron’s investment in Bulgarian fracking carries in its wake a lot of investment and jobs before concluding, “Do you really want to say absolutely ‘no’ and ‘never’ to such a company?”

Ambassador Warlick should take some solace from the fact that the National Assembly defeated a draft resolution on a moratorium proposed by the Ataka (Attack) parliamentary group, which proposed introducing a 20-year fracking ban.

But no doubt providing Ambassador Warlick with a Maalox moment, Ataka Volen Siderov advised the government to present a protest note against what he said were Ambassador James Warlick's attempts to lobby for Chevron. Arousing Siderov’s ire, on 15 June 2011 Bulgaria’s Council of Ministers granted Chevron Bulgaria Exploration & Production EOOD subsidiary a five-year permit to prospect for oil and natural gas in the 1,700 square-mile Bloc 1 Novi Pazar, located in the Razgrad, Silistra, Dobrich, Shumen and Varna regions.

Today’s vote required holders of permits for exploration and production using fracking within three months to submit for approval revised projects excluding the banned methods.

So, Bulgaria’s National Assembly for the present has decided to continue to pay its bills to Gazprom rather than adopt increasingly controversial fracking techniques heavily promoted by a NATO ally’s ambassador.

Before he hits the rakia to drown his sorrows, Ambassador Warlick should remember that the National Assembly did not say “ne” (“no”) to fracking, just “n? s?g?” (“not now.”)

By. John C.K. Daly of Oilprice.com




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  • Prj57 on January 23 2012 said:
    As a Bulgarian and someone who works in the energy business, I am happy that this decision was made, although given the state of affairs in the country I wouldn't be surprised if they OK-ed this under the table at a later stage. There have been 2 protests nationwide in the past week regarding this issue. The problem some rational thinking people, me included, are having with Fracking is that, Chevron wants to prospect for shale in the north-east region of Bulgaria, also known as Dobrudja. This is our most fertile land-region and where nearly all of the country's agriculture is located. Unfortunately, some including people in the ruling GERB party are more interested in their personal bank accounts rather than the well being of the people who elect them. So the choice boils down to: "make a lot of money for myself and let the next generation suffer the consequences or pay a little bit extra to the Russians and try and work things out in the long run"

    We have a saying that goes: "You don't sh#t where you eat"
  • martin on February 08 2012 said:
    At least one legislative body is not yet bought by the special interests.
    Warlick should probably go get a doze of what hydro fracking has brought to communities in upstate NY. People are getting more gas than water out of their faucets. Major underground water reservoirs are contaminated for good. Huge spike in cancer rates.
    Yeah - will provide more jobs but what good are more jobs when you lose your health and the environment goes down the toilet.
    I wonder what kind of paycheck Warlick is getting from Chevron...

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