Shale gas in Romania

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Unconventional Shale gas in Romania has been prospected, licenses were given to several companies, but no exploitation has yet started. The current government led by Victor Ponta supports extraction of shale gas through fracking, but there have been protests against it. Romgaz discovered non-conventional gas resources (including shale gas) in 1994-1995 in Transylvania; however, they were only accidentally exploited. [1]

Contents

Government policy

When the Democratic-Liberal government began supporting shale gas extraction in 2012, the Social-Democratic Party voiced its opposition. In April 2012, a motion of no confidence written by the Social-Democrats led to the fall of the Ungureanu government. The motion of no confidence blamed the government for approving shale gas extraction without an appropriate legislative framework and without any geological studies. [2]

When the Social-Democratic Party took power, its May 2012 party programme proposed the "immediate establishment of a moratorium on shale gas until the studies that are ongoing at European level on the environmental impacts of hydraulic fractionation process". [3]

In June 2012, a proposal by several Vaslui County deputies to ban shale gas extraction through fracking was rejected by the Victor Ponta government, being also rejected by the Senate. [3] Soon after, Ponta announced that the government would re-analyze its position on shale gas. [2] In July 2012, PM Ponta announced that retired general Wesley Clark (who was working for shale gas company BNK Petroleum) would become an adviser of the Romanian government, fueling speculations of a change of policy regarding shale gas and fracking. [2]

Following negotiations with petroleum corporation Chevron in December 2012, Ponta announced in January 2013 a reversal of the policies, saying that shale gas extraction "should be considered as something positive". [2] The first permissions for the exploration of shale gas were given a few days later in January 2013. [2]

Companies involved

Chevron

American corporation Chevron has the rights to extract shale gas from a combined area of 870,000 hectares [4] around Bârlad, as well as from several areas in Dobruja (Adamclisi, Vama Veche and Costinești), under 30-year contracts that can be extended for another 15 years. [5]

The gas extraction rights for the Bârlad area were sold by Frank Timiș's Regal Petroleum to Chevron in 2010 for $25 million. [6] Chevron was given in January 2013 the permission for exploration of shale gas in Bârlad and a few months later, in May 2013, it was also given permission for the exploration of the gas fields along the southern Romanian Black Sea coast. [2] The royalties given to the Romanian state are between 3.5% and 13%, depending on the sizes of the deposits. [5]

The exploratory drillings were supposed to start in October 2013 in Pungești, Vaslui County, however, following protests both in the village and in Bucharest, Chevron decided to suspend its activities. [7] The Pungești local council announced the organization of a non-binding local referendum on the issue. [7]

Protests

Protests against shale gas were held in several major cities including Bucharest, Cluj-Napoca, Constanța, [8] as well as in the areas where the exploitations will be done, including in the city of Vaslui and the village of Pungești. A small village in Vaslui County became a center of resistance against exploitation of shale gas.

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<span class="mw-page-title-main">Romgaz</span>

Societatea Națională de Gaze Naturale Romgaz SA Mediaș or simply Romgaz is the largest natural gas producer in Romania and one of the largest producers in Eastern Europe. The company is the country's main supplier and responsible for producing around 40% of the total natural gas consumption in Romania.

<span class="mw-page-title-main">Shale gas</span> Natural gas trapped in shale formations

Shale gas is an unconventional natural gas that is found trapped within shale formations. Since the 1990s a combination of horizontal drilling and hydraulic fracturing has made large volumes of shale gas more economical to produce, and some analysts expect that shale gas will greatly expand worldwide energy supply.

<span class="mw-page-title-main">Pungești</span> Commune in Vaslui, Romania

Pungești is a commune in Vaslui County, Western Moldavia, Romania. It is composed of nine villages: Armășoaia, Cursești-Deal, Cursești-Vale, Hordila, Pungești, Rapșa, Siliștea, Stejaru and Toporăști.

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<span class="mw-page-title-main">Fracking</span> Fracturing bedrock by pressurized liquid

Fracking is a well stimulation technique involving the fracturing of formations in bedrock by a pressurized liquid. The process involves the high-pressure injection of "fracking fluid" into a wellbore to create cracks in the deep-rock formations through which natural gas, petroleum, and brine will flow more freely. When the hydraulic pressure is removed from the well, small grains of hydraulic fracturing proppants hold the fractures open.

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Cuadrilla Resources is an oil and gas exploration and production company founded in 2007. It is headquartered in Bamber Bridge, Lancashire, and has operations in the United Kingdom. The company intend to develop shale gas in the UK by using hydraulic fracturing. Its chairman is Roy Franklin, who is also deputy chairman of Equinor. Its chief executive is Francis Egan.

<span class="mw-page-title-main">Anti-fracking movement</span> Environmental activism

The anti-fracking movement is a political movement that seeks to ban the practice of extracting natural gasses from shale rock formations to provide power due to its negative environmental impact. These effects include the contamination of drinking water, disruption of ecosystems, and adverse effects on human and animal health. Additionally, the practice of fracking increases the amount of carbon dioxide released into the atmosphere, escalating the process of climate change and global warming. An anti-fracking movement has emerged both internationally, with involvement of international environmental organizations, and nation states such as France and locally in affected areas such as Balcombe, Sussex, in the UK. Pungești in Romania, Žygaičiai in Lithuania, and In Salah in Algeria. Through the use of direct action, media, and lobbying, the anti-fracking movement is focused on holding the gas and oil industry accountable for past and potential environmental damage, extracting compensation from and taxation of the industry to mitigate impact, and regulation of gas development and drilling activity.

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<span class="mw-page-title-main">Roșia Montană protests</span>

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The 2012–2014 Romanian protests against shale gas were a series of protests in major Romanian cities against exploitation of shale gas through controversial method of hydraulic fracturing. The main causes of these protests were the pollution of groundwater and environment, but also the threat of generating earthquakes. The protesters claimed the resignation of Prime Minister Victor Ponta, because he suddenly changed his position on the project. Before the electoral campaign of 2012, he opposed shale drilling, but after he supported it with any risks, on the grounds that Romania's energy independence is a national project.

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References

  1. ↑ Claudia Pirvoiu (June 18, 2013). "Romgaz a descoperit gaze de sist in urma cu 17 ani si ar putea sa treaca la faza de exploatare dupa anumite evaluari". Hotnews. Retrieved 17 October 2013.
  2. 1 2 3 4 5 6 "Cum s-a schimbat pozitia USL fata de gazele de sist. De la motiune de cenzura pina la idee care trebuie tratata "serios pozitiv"". Hotnews. 9 January 2013. Retrieved 17 October 2013.
  3. 1 2 "Cabinetul Ponta a blocat stoparea exploatărilor de gaze de şist". România Liberă. July 6, 2012. Retrieved 17 October 2013.
  4. ↑ "Shale Gas Search Divides Romania". New York Times. April 22, 2012. Retrieved 17 October 2013.
  5. 1 2 "Trei contracte au fost desecretizate la presiunile SAR si ARC. Asteptam Barladul!". Alianța pentru o Românie Curată. 26 April 2012. Retrieved 16 October 2013.
  6. ↑ "Regal Petroleum renunţă la exploatația de la Bârlad". Evenimentul Zilei. 30 September 2010.
  7. 1 2 "Chevron halts east Romania shale gas search after protests". Reuters. October 17, 2013. Retrieved 17 October 2013.[ dead link ]
  8. ↑ "Miting împotriva exploatării gazelor de şist! Vino şi tu! "Aducem sticle cu apă, va fi singura rezervă potabilă!"". Adevărul. April 26, 2012. Retrieved 17 October 2013.
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