MOSCOW (MRC) -- Hopes that Poland could lead a US-style shale gas boom in Europe are fading fast as energy companies say red tape is delaying commercial output and Warsaw's draft proposals to cut bureaucracy do not go nearly far enough, according to Upstreamonline.
The firms say there is plenty of gas but its exploitation is frustrated by difficult geology and onerous, unclear regulation.
Prospects darkened this year after Marathon Oil and Talisman Energy followed ExxonMobil in pulling out of Poland, which was once seen as Europe's best shale prospect with substantial reserves and a friendly government.
The government, hoping shale gas will deliver Poland from reliance on energy imports from Russia, is proposing new legislation to ease conditions for investors. Global players remaining in Poland's shale sector include Chevron, ConocoPhillips and Eni.
Under pressure to retain investors, the deputy environment minister and chief geologist, Piotr Wozniak, has drafted proposals for new rules that are awaiting cabinet approval. These include allowing firms to extend exploration licenses by two years if needed, instead of the previous proposal of one year; letting them convert exploration permits into production permits without having to bid again; and making it easier to lease state-owned land on and around drilling sites.
Asked about its plans, a Chevron spokeswoman said the company was committed to Poland. An Eni spokesman declined to comment. A ConocoPhillips media representative in Warsaw did not respond to a request for comment from Reuters.
If shale gas fails to live up to the government's ambitions, the chief beneficiary will be Russia's Gazprom, which will continue to be Poland's biggest gas supplier.
As MRC wrote earlier, Dow Chemical is interested in shale gas exploration in Poland along with its perspectives and, therefore, is analyzing the chemical industry in Poland at present. As a major chemical manufacturer, Dow is both a potential consumer and contributor to the production of shale gas and its associated products, notably natural gas liquids. Many of Dow's businesses are already developing chemical and technology solutions for shale gas exploration and development, such as advanced microbial control technologies, which help to protect water supplies.