On
November 5th, Chevron signed a 50-year agreement to develop
oil and gas. The exploration will take
place in the Oleska Block, which is heavy with shale rock deposits. Ukraine has much to gain if oil and gas are found. In the
past, Ukraine has relied on Russia to import its supply of natural gas and
Russia had the power to cut off winter heating fuel whenever it wanted to. By
finding a source of its own natural gas, Ukraine can decrease its reliance on
Russian natural gas. This is
another example of shale gas technologies that are altering the geopolitics of
energy. Traditionally, three countries (Russia, Iran and Qatar) have held about
half the reserves of natural gas. But shale is found in many other places, and
could undercut the traditional balance of power in the energy markets.
Russia
maintains that shale gas causes pollution and is more expensive than gas from
traditional deposits that are abundant in Russia. It also argues that shale gas wells are
quickly depleted. In former Soviet Bloc countries,
there is still uncertainty about shale drilling, and many are not convinced
that it is in their best interest as fears of polluting water supplies and
disrupting local lifestyles are widespread.
Written by Joseph Negaard - Research Assistant
The Agricultural Law Resource and Reference Center
@PSUAgLawCenter
November 9, 2013
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