Memorandum submitted by ExxonMobil |
As discussed, ExxonMobil is developing new tools
and techniques for finding and producing gas resources, both conventional
and unconventional, in Europe. We believe that unconventional
resources will increasingly contribute to European supply, expecting
to grow to ~5 BCFD or about 10% of total supply by 2030.
ExxonMobil has been steadily increasing our position
in unconventional gas resources by focusing on securing access
to high-quality opportunities worldwide. Following the completion
of ExxonMobil's merger with XTO, the company is moving forward
with the creation of a new organization to focus on global development
and production of unconventional resources.
In Poland ExxonMobil Exploration and Production Poland
(EMEPP) has now safely completed drilling the Krupe-1 shale gas
well in the Chelm concession in southeast of the country. The
well spudded on 3 December 2010 and reached a target depth of
3,807 meters. On 20 February 2011 drilling commenced on the Siennica-1
well, and is expected to last for 10 weeks.
Further operations at both wells, including a decision
if fracing will be conducted, are dependent upon an analysis of
EMEPP has also safely completed 3D seismic surveys
in the Miñsk
Mazowiecki, Wolomin and Chelm areas. We have commenced shooting
seismic in the Werbkowice concession. 3D seismic acquisition is
a low environmental-impact, temporary activity and all activities
are conducted in a way to respect and protect the local communities,
wildlife and the environment. The programs incorporate ExxonMobil's
global best practices to ensure the environmental footprint is
minimal and temporary, and complies with our permits.
With regard to your question on regulatory regime,
ExxonMobil supports stable and sensible policies that will allow
unconventional gas to compete on a level playing field. This will
help increase production and secure supplies of reliable, affordable
energy to help boost the economy. Due to the relative lack of
equipment and personnel in Europe for large-scale unconventional
exploration and development, it will be important that there are
no undue restrictions on the import of equipment and/or services
into the EU, or the ability to move these quickly from one country
to another within the EU.
Operators are likely to ask for larger, unproven
development areas in their production licenses than for conventional
resources, due to the inherent nature of unconventional resource
basins. Regulatory amendments will need to take this into account.
Environmental regulations may need to be amended to account for
issues associated with accessing large tracts of land with large
volumes of equipment, as well as to manage water use during operations
in an environmentally responsible manner.
Extended pilot phases (potentially lasting years,
not months) that produce gas on a smaller scale than full development
are distinct possibilities.
These pilots may require innovative local solutions,
such as supplying local communities through small, newly built
distribution systems or using portable gas-fired electrical generation
stations to supply local communities directly through the existing
grid. All of this may require regulatory amendments.
As previously offered, we would be delighted to meet
with Chairman Yeo to discuss both shale gas regulation and our
activities in Poland.