Romania has been forced to face the facts when it comes to the fracking, or lack thereof. It had hoped to seal a lucrative deal to extract 1.4 trillion cubic meters of gas, which has now turned to out to be zero. “It looks like we don’t have shale gas, we fought very hard for something that we do not have,” Victor Ponta, Romanian Prime Minister said.
Chevron, one of the ‘Big 6’ oil companies, has spent over $500 billion in searching for shale gas in Romania, and has the rights to over 9,000 square kilometers of land to drill, according to unconfirmed reports. The American oil giant’s huge investment in the country caused anti-fracking protests to erupt in December 2013.
Poland, heavily dependent on dirty coal, also placed high hopes on shale discoveries. The 5 trillion cubic meter estimate has been slashed to 768 billion cubic meters.
An example outside the EU is India, which at first was estimated to contain 63 trillion cubic feet of shale gas, a forecast that was slashed by 90 percent to 6.1 trillion cubic feet. The shale energy boom in the US has helped it shift from the world’s biggest energy importer of petroleum products to the second-largest net exporter, after Russia. Citigroup analysts believe that by 2020 the US will overtake Russia as the world’s largest supplier of petroleum products.
However, many of these predictions are based on over-estimated reserves. Three years ago the US thought it had 827 trillion cubic feet of reserves, a year later that estimate was revised to 482 trillion cubic feet, according to data from the US Energy Information Administration (EIA). Fracking potential is being exaggerated on many levels, according to George Barda, an environmental activist in the UK.
“What we’ve seen in the US recently is that the prediction of a century of home grown energy from fracking has been massively revised down to the point where a recent survey said the peak of US shale gas will probably be in the 2020s,” Barda told RT.
For now, fracking is paying off for the US, which has helped US oil production reach a 50-year high.