Shifting Sands in Romania Shale Gas Debate
Recent activity could indicate shift in position
Background
The potential development of Romania's shale gas resources first came to significant public prominence in early 2011.
Following applications initiated in 2010, Romania's government approved the granting licenses to Chevron Corp. for exploration, development and exploitation of shale gas in the Dobrogea region near the Black Sea in South-Eastern Romania and in the eastern Barlad region in the North East of Romania.
The activities had the support of the then ruling center-right coalition of Prime Minister Mihai Razvan Ungureanu.
The move drew widespread opposition from NGO's and civil society, who were urged on by events in neighbouring Bulgaria, where protests led by environmentalists saw the revocation of a license granted to Chevron and a vote by the Bulgarian parliament in favour of a ban on the shale gas and oil extraction process of hydraulic fracturing (fracking).
In March 2012, representatives of center-left political opposition led by the Social Democratic Party (PSD), filed a legislative initiative with the Romanian Senate Secretariat that would prohibit the exploration of the unconventional gas using the hydraulic fracturing method.
Acknowledging the strong concerns showed by citizens over the potential impact of hydraulic fracturing, Chevron announced the suspension of its activities for the exploration and extraction for shale gas early this April.
The fall of the Ungureanu government as a result of a motion of no confidence in April 2012, saw the appointment of Victor Ponta, the leader of the PSD, as Prime Minister. Ponta’s government moved quickly to establish an immediate moratorium on the exploration of shale gas.
Shifting Sands
Recent developments indicate that the debate on shale gas development appears be about to be re-visited.
On Thursday, June 21st, the March proposal to ban shale gas exploration and exploitation by hydraulic fracturing and cancellation of exclusive licenses granted for exploration projects that making use of this technique, was voted upon and rejected by Romanian Senate.
The proposal received 11 votes in favor, 53 against, with 9 abstentions. Those voting in opposition included the representatives of the PSD, the very party that proposed the legislation.
It appears that PSD and the Ponta government has changed its position on shale gas development during the period that has passed since March 2012, when it was in opposition.
In an interview with media on Friday, Ponta explained the position taken by the government.
"There is a moratorium (on shale gas) until December," the Prime Minister commented, saying that the government would provide its final position following the conclusion of the moratorium period.
"After, we consider a decision which, on the one hand, ensure environmental protection uncertainties and, on the other hand, keep in mind that for Romania, any alternative energy source is very welcome," he continued.
Ponta noted that the exploration operations that had been commenced last year, would not have been completed until 2018.
"In six years, technology will evolve over Europe and a decision will be taken to know if this technology is dangerous for the environment and how to eliminate these effects," said the Prime Minister.
Ponta said that Romania wanted to align itself with EU legislation. "We want to be neither the only country to accept shale gas tapping nor the only one to oppose it."
Romanian MEP Victor Boştinaru believes that the potential environmental implications of shale gas have a cross-border dimension, and therefore require a European response.
Boştinaru comments, "it is an obligation for the governments of EU Member States to assess cumulative effects, given the risk that such a project may have on the micro-seismicity and deep pollution of surface water, soil and air."
Boştinaru notes concerns expressed by civil society, and says that voice of the people in these communities must be heard.
"Staff will do whatever is necessary, under my tenure in Parliament, so that there are safeguards to protect the environment and citizens, meeting standards and best practices in the European Union. "
Attractive Prospects
"Shale gas is the future," commented Alexander Patruti, President of the Agency for Mineral Resources (NAMR).
Romania is hoping that shale gas will place the nation in the position of not having to seek imports. Currently, about 85% of gas consumed in Romania is produced domestically, the rest being imported from Russia.
Annual consumption is approximately 15 billion cubic meters and exploitation of existing unconventional gas prospects could solve the problem of gas imports.
In addition to Chevron, OMV Petrom SA is also investigating the potential for shale-gas exploration in Romania.
Mariana Gheorghe, Chief Executive Officer of Romania’s biggest oil company, said it would decide on the next steps based on the results of a preliminary assessment and Romanian and European legislation.
Romania's largest gas producer Romgaz has said that it will also seek to exploit an unconventional gas discovery in Transylvania.
Speaking last week at the Regional Energy Forum for Central and Eastern Europe (FOREN), company director Radu Gheorghe said Romgaz will aim to extract the shale gas found, which it says it has been encountering since the mid-1990’s.
Text: Silviu Molnar