Natural gas energy in Poland
Poland has over 5.3 Trillion cubic meters of shale gas. It is an estimate. This would make it the largest reserve in Europe only second to Russia. And really the reserves are right up there with Saudi Arabia (7 trillion cubic meters). Poland could potentially become fairly rich nation like a Norway, if it develops if this energy and the contracts are handled properly. Poland also wants to pursue a nuclear energy program.
The general idea is to make Poland energy rich and independent with coal, shale gas, nuclear and alternative energies. In my estimate it is on this path and will help Poland. The issue is to balance with environmental concerns and capital shortages to develop this.
Poland needs to protect the shale gas investments and not give it away.
Where are these resources in Eastern Europe? The shale gas in southern and eastern Poland is part of a very large underground reservoir of natural resource reserves. It had been rumored for a long time, but Poland did not want Russia involved in the extraction so kept is secret.
Why is this important and why are the Americans the energy partner with Poland? It could supply Poland and the EU with all its energy needs. Since France and Germany need this specific gas the most, Poland saw it in its best interest to get help from the Americans.
I think this was the right thing to do. President Bronislaw Komorowski and Prime Minster Donald Tusk are aware of this and that is why I think they prefered dealing with the Americans in terms of a partner for shale gas extraction and exploration. ExxonMobil have been mentioned – stock ticker XOM – for leading the exploration. The key point is they can not give it away, it has to be very advantageous for the Poles or they should not do business.
What is shale gas? – Is it oil or can we fill our cars at the pump?
This is not oil, but shale gas. It is embedded in the earth and the extraction process is complicated and has environmental implications. Shale or sand gas from fine grain sedimentary rock and oil are profitable only now as technology increases and oil is over about 60 dollars a barrel. Gas is a close substitute for oil and can be used to drive cars. In Poland we use it and it about half the price of petrol at the pump.
US partnership with Poland over energy
Obama want to respect democracy and give Poles visas right? Obama’s trip to Poland was behind the scenes about shale gas contracts for US companies to have rights to explore in Poland – good for Poland I guess as it is costly to explore and extract shale gas. It is not like drilling and pump, it takes capital and cash. I question Obama and the way he handles the US economy with spending, but however, on this point on energy and foreign policy with Poland – it is a win-win for the US and Poland.
The Polish government wanted to US partner instead of a Russian or other partners of course as this is part of Warsaw’s policy of independence in terms of energy.
If Poland does have the shale gas as projected Poland will be a very rich country, that is of course if Warsaw negotiates the contracts correctly.
Oh, Yes, Poland might get added to the list of visa exception companies but Tusk said this was not a priority in the negotiations. Rightfully so as Poland is an EU country and this gives Poles a huge market to work and live in and the US is more for tourism. The gas and natural resource issue is more important.
When you hear an US President talk about democracy be a little skeptical, usually there is something else behind the scenes like oil or gas or supporting an ally that is in the best interest of the President at the time. Think of the wars in Kuwait, Iraq and Libya and why they were fought.
Skepticism aside, in conclusion, I think the US and Poland have similar ideals in terms of the world and vision of freedom and democracy. These countries are two great allies and I think Poland and the US will benefit from further cooperation as the US and Poland are both lights for the free world. This shale gas in Poland will help Poland in the long run, especially with US help in terms of capital.
I am fairly postive about the idea of exploring for oil and gas in Poland with the USA in a business partnership, however, what is your opinion on Polish natural resources and the Warsaw’s policy of extraction and partnership with the USA?