Shale gas utterly changed the American gas market – how about Polish?

19. January, 2013 News No comments
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Within four years, the heating costs in the USA declined by half, thanks to the shale gas extraction. This situation may happen to Poland as well, but on a minor scale, due to disparities in the  extraction costs.

Lower natural gas prices have attracted many investors to the USA, mainly in the chemistry business bringing multibillion investments in  chemical factories, for  which the natural gas is the main source of energy. Experts claim that the shale gas revolution in Poland may be less successful, because of the high drilling costs. Execution of a borehole in the USA costs about USD 8-9 million. Polish company PGNiG claims that these costs, including the process of fracturing, oscillate between USD  10-15 million. The main reasons behind this disparity include: a more intricate geological structure and more stringent environmental restrictions in Poland. In Europe there is a shortage of drilling devices, countries are more densely populated and shale gas deposits lay much deeper than in the USA.

In the USA and Canada, 400 thousand exploratory and extractive wells have been executed so far.  Each costed between USD 3,5 and 9 million. In Poland, to date, only 33 exploratory boreholes have been started, with the total cost under  USD 1 billion. The Ministry of the Environment claims that by the year 2021, further 309 drilling wells will have been executed(128 for sure and additional 181 optionally, depending on the investors).

So, do you think Poland can achieve such a successful results in future? What will it depend on? Share your opinion with us.

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