CASE took part in the 5th International Conference “Energetika XXI: Economy, Policy, Ecology” in St. Petersburg

CASE took part in the 5th International Conference “Energetika XXI: Economy, Policy, Ecology”, which was held in St. Petersburg, Russia, on October 17-19th. The conference was organized by St. Petersburg State University of Economics and Finance.
Dr Maciej Sobolewski, Vice President of CASE’s Management Board, gave a presentation on the economic potential of shale gas production in Poland. In his presentation, he pointed out that the decision to develop the shale gas industry in Poland requires not only a huge investment in exploration and production but also in distribution and consumption of natural gas. Additional potential demand for natural gas in Poland is estimated at 10-12 billion cubic meters (bcm) per year during a 10-year period, whereas the current unsatisfied demand amounts to 3 bcm. Direct capital needs are estimated at 40 billion USD until 2025 and thus cannot be fully financed from domestic sources. The economic potential of shale gas is very high in terms of its impact on GDP growth, employment rate, disposable income and tax revenues; however, in order to be fully released, it requires foreign capital commitments specialized in financing hydrocarbon projects with increased business risk. A positive scenario for shale gas production in Poland requires not only the confirmation of economically accessible shale deposits, but also the creation of a rational regulatory regime that would reinforce Poland’s position in competition for entry against global oil & gas companies, which possess the necessary experience, technology and access to global capital markets.