Caspian Report - Issue: 07 - Spring 2014

Frank Umbach
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approved by the government. In the
same month, a local referendum on
the use of fracking technology for
shale gas production was declared
invalid because less than 50% of voters
participated.
At the end of January 2013, the Romanian
government awarded Chevron
exploration licenses to pursue
unconventional gas production, despite
environmental concerns. Prime
Minister Victor Ponta has warned
that Romania’s economic competitiveness
vis-à-vis Poland and other
countries will suffer if shale gas is
not exploited. He also hopes to reduce
the country’s dependence on
Russia and Gazprom, with the further
benefit of purchasing gas much
more cheaply in comparison with
Russia’s high prices of US$450 per
1,000 cubic meters. But he believes
that the exploration and confirmation
of existing or non-existing economically
exploitable resources may
take up to five years before a final
decision to produce shale gas can be
made by the government. Together
with its newly discovered offshore
conventional gas resources in the
Black Sea holding 42-84 bcm (which
would cover its gas demand for nine
years), Romania’s even higher shale
gas resources could cover its net domestic
demand and make the country
self-sufficient in terms of gas.
In November 2013, the European
Centre for Excellence in the field of
natural gas (CENTGAS) and part of
the Romanian National Committee
of the World Energy Council (RNC-
WEC) published a study concluding
that Romania’s shale gas resources
could represent a real alternative
for strengthening Romania’s energy
security and energy independence.
Romania’s unconventional gas resources
could transform the country
into a gas exporter by the beginning
of the next decade, contributing 1.5%
to annual GDP, reducing gas prices by
12% in the short-term and by 33%
in the long-term, creating jobs and
generating more tax for the state
budget with estimated annual revenues
of US$176.2 million. New hydraulic
fracturing technologies and a
responsible water management can
reduce the risks of technical accidents
and environmental impacts, as
responsible water management will
eliminate potential sources of water
pollution.
Bulgaria
Bulgaria has an annual gas consumption
of around 3 bcm and is almost
completely dependent on imports
from Gazprom. The Bulgarian government
adopted a moratorium
on the exploration of shale gas and
the fracking technology in January
2012 as a consequence of local
opposition, months of protest and
pro-Russian attitudes. Legislation
was amended in May 2012 to allow
the development of natural gas
projects by conventional drilling
technologies, for instance for the
newly discovered offshore gas fields
on Bulgaria’s Black Sea coast. However,
fracking technology for shale
gas exploration is still not permitted.
Since then, there has been a push to
lift or at least review the ban by the
Movement for Energy Independence
(DEN), parts of the government and
the Bulgarian President Rosen Plevneliev.
Even Bulgaria’s Environment