• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 15 hours Shale Oil will it self destruct?
  • 10 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 22 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Childish Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 6 hours Iran Captures British Tanker sailing through Straits of Hormuz
  • 19 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 7 hours Renewables provided only about 4% of total global energy needs in 2018
  • 23 hours Today in Energy
  • 2 days Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 59 mins Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 2 days Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 1 day LA Solar Power/Storage Contract
  • 2 days Why Natural Gas is Natural
  • 10 hours U.S. Administration Moves To End Asylum Protections For Central Americans
Jen Alic

Jen Alic

 

More Info

Premium Content

Chevron Gets Boost As Poland Ease Shale Rules

Chevron Corp. (NYSE: CVX) and Conoco Phillips (NYSE: COP) have been anxious to get their hands on Poland’s vast gas reserves that lie some 3 miles under the surface of the country’s nature reserves. The Polish government is about to make that easier.

This week, Poland announced it would ease environmental regulations that have been slowing exploration and development of its shale gas and making it too expensive. To wit, the completion of exploration wells has taken a hit because of the regulatory environment and missed forecasts by some 25%.

One of the main things slowing shale exploration down was the requirement for companies to seek new permits for every new step: drilling deeper than planned or drilling at a different angle. For the 113 licenses already awarded by Poland, it has been a permit frenzy

Related article: Ukraine and Russia Make Moves to Dissolve Natural Gas Relationship

The new rules allow companies to drill as deep as 5,000 meters with a single permit and then to re-apply for a new permit when production starts. 

According to Poland’s Environment Ministry, the new rules will also see companies responsible for producing environmental impact assessments only for a specific drilling site rather than for the total license acreage.

But there’s more: New tax regulations have been in the works since early last year, courtesy of the Polish Finance Ministry. This would involve cap levies on hydrocarbon production at a total of 40% of profit.

Poland has enough shale gas to keep it afloat for the next five decades—and it would very much like to tap into this as an alternative to Russian gas.

Related article: Is Europe Next for a Shale Natural Gas Boom?

The three key players on the scene now are the state-controlled Polskie Gornictwo Naftowe i Gazownictwo SA (PNGIG), Chevron and ConocoPhillips who combined will likely sink upwards of $4.5 billion in wells over the course of this decade.

Up to 40 wells are planned for this year as a result of the easing of the regulatory environment and the pending new tax regime.

By. Jen Alic of Oilprice.com




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play