Shale Gas Production in the Post-Soviet Countries: First Results and Problems

Abstract

This chapter considers the approaches and possibilities of exploration and use of shale gas in the countries of the former USSR. Many of them became interested in the results of the US “shale revolution” which opened the new stage in gas production. Some post-Soviet countries are eager by using shale gas to reduce their dependence on external deliveries, thus, attaining energy independence.The data on shale gas reserves in the post-Soviet countries are taken together; the preliminary results of energy policy in these countries concerning development of the shale gas deposits are presented; the first results of oil and gas company activities are analyzed.Of all post-Soviet countries, Ukraine was most active in this respect having declared about possessing the greatest shale gas reserves. Ukraine invited foreign oil and gas companies which showed interest in the shale deposits. But the shale gas production in Ukraine acquired political dimensions impeding the objective assessment of startup conditions and likely consequences of shale gas extraction for the people and natural environment. Shale gas was in the focus of attention of the authorities in Kazakhstan and Moldavia which considered this hydrocarbon resource as the significant factor for diversification of hydrocarbon supply and ensuring independence of the Russian gas. “Shale revolution” was not neglected in Russia which had to take into account the shale gas factor in the world energy balance adjusting its policy respectively. USA made attempt to push its shale contracts in Russia, thus, ensuring access to the Russian gas market. On the one hand, Russia remained indifferent to the shale boom and went on implementation of its pipeline projects, but, on the other hand, it does not waive off absolutely the potential of this hydrocarbon resource.In general, the post-Soviet countries regardless of the lack of a legislative base, technologies and unresolved environmental issues have shown certain interest in shale gas production.