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1 Przegląd Geologiczny

1 2010

1 Hadro J.

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Hadro J.

tom Vol. 58, nr 3

250-258

Unconventional gas by definition is economically less profitable and more difficult to extract then conventional gas. However, gradual depletion of conventional gas fields as well as large resources of unconventional gas make the latter an attractive target. Coalbed methane (CBM), tight gas and shale gas have been successfully developed in the US over the past two decades. Shale gas production has grown at the fastest pace in recent years and reached over 2 tcf in 2008, which is 6-fold increase since 1998. Key to success of unconventional gas development was Noncoventional Fuels Tax Credit introduced by the US government in 1980. This initial production growth of unconventional gas and shale gas in particular, was later sustained by the development of horizontal drilling and fracture stimulation technologies, economy of scale and increasing gas prices. Economics of producing shale gas is marked by bigger resource potential and, at the same time, lower production rates and higher drilling costs as compared to conventional gas, which entails adopting cautious investment strategies. Shale gas exploration strategies are also different from those of conventional gas and, initially, require an extensive source rock analysis and a big land position to identify "sweet spots". Shale gas exploration in Poland is in its infancy, being focused on the Silurian-Ordovician shale formation which is poorly explored and thus poses a significant exploration risk. Therefore, exploration companies have used a cautious approach which is reflected in planning of the concession activities divided in a few phases, with each successive phase contingent on the positive results of the preceding one. These phases include: existing data analysis, seismic, drilling an exploratory well with extensive core analyses prior to a pilot testing program using horizontal wells. On a technical level of shale gas exploration, the integration of many disciplines is required for commercial success. Potential barriers to shale gas exploration in Poland have been identified such as: regulations which are in favor of the domestic service companies impeding competition, changeable and unclear environmental protection regulations, as well as insufficient liberalization of the domestic gas market.