The Telegraph reports: Russia is launching a strategic drive to unlock its shale oil wealth as crude output stagnates and reserves run low in the West Siberian fields, aiming to replicate America’s technology leap in a near total reversal of policy.
The Kremlin has launched an “action plan” to master fracking methods and lure investors into the Bazhenov prospective, a shale basin the size of France to the east of the Urals. Officials are no longer dismissing shale’s promise as a mirage. “We are clearing away the administrative barriers to exploration. This is the urgent challenge we are now facing,” said Kirill Molodtsov, the deputy energy minister.
The US Energy Department estimates that Russia has 75bn barrels of recoverable shale oil resources, the world’s largest deposits. The Bazhenov field is 80 times bigger than the US Bakken field in North Dakota, which alone produces 1m barrels a day.
BP joined the scramble on Saturday by signing a deal to explore for shale in Volga Urals with Rosneft, even though Rosneft’s chairman Igor Sechin is on the US sanctions list. [Continue reading…]