The resources grab

Chevron gets permit to look for shale gas in Romania

US oil giant Chevron obtained permits to explore for shale gas on Romania's Black Sea coast, the Environment Ministry said Wednesday, despite controversy about risks of the technique known as fracking.

France 24,

8 May, 2013

"The environment protection agency of Constanta county, in south-eastern Romania, has delivered seismic prospecting permits for the Costinesti and Vama Veche blocs," the ministry told AFP.

The permits will allow Chevron to conduct "controlled explosions" at depths of between 10 and 15 metres (32 to 49 feet) within an area that measures 1,800 square kilometres (695 square miles).

In January, the company had been granted zoning certificates in the eastern Romanian region of Barlad, a boost to its local operations.

Shale gas drilling has fuelled controversy around the world, and the technique used, hydraulic fraction or fracking, has been banned in countries such as France and Bulgaria.

Fracking is a process whereby liquid products, including water and chemicals, are pumped deep into oil or gas-bearing rock to cause fractures and release hydrocarbons.

Environmentalists say the method poses serious threats that include contaminating ground water and triggering earthquakes.

Chevron maintains that all its activities "have, and will continue to be conducted in compliance with Romanian laws, EU requirements and stringent industry standards."

Romania's ruling centre-left coalition, in power since May 2012, had slammed the previous government's decision to grant Chevron and other oil groups concessions to prospect for shale gas.

The government led by Prime minister Victor Ponta last year adopted a moratorium on drilling, putting Chevron's operations on hold.

But after the moratorium expired in December, Ponta said he was in favour of exploration.

Environment minister Rovana Plumb last month said that shale gas exploration "posed no risk", and added that Romania should find out if it really had significant reserves.

A US Energy Information Administration study said the joint reserves for Romania, Bulgaria and Hungary were around 538 billion cubic metres (19 trillion cubic feet), among the biggest in eastern Europe.

NZ: Oil find could have big impact

The 54,000 square kilometres off the west coast of the upper North Island is one of the most promising frontier basins around New Zealand, Northland MP Mike Sabin says.

Stuff

2 May, 2013

The Northland and Reinga Basins are among several areas the government announced April 29 as available for competitive oil and gas exploration tenders in Block Offer 2013.

"Existing oil and gas operations in Taranaki have brought over 5000 jobs to the region, while contributing $2 billion to national GDP, with $400 million in royalties and $300 million in company tax.

"The same formula can work just as well in Northland," Mr Sabin says.

Each "block" being offered is up to 250 sq km in size.

Minister of Energy Simon Bridges announced the new territories for exploration at the Advantage NZ petroleum conference in Auckland on Monday.

About 500 oil and gas industry delegates attended the conference which was opened by Prime Minister John Key as the government continues to attempt to attract oil companies to invest in New Zealand.

Mr Bridges says the block offer process can "attract the most-competitive bids and allocate permits to the companies best able to meet our expectations".

Companies will have until September 26 to submit bids for their preferred blocks.

Bidding for permits for work in the blocks will start on May 24, the same day the recently passed Crown Minerals Act will come into force.

The combined potential of resources offshore and onshore metallic minerals could provide significant economic stimulus in years to come, Mr Sabin says.

Other areas include three onshore blocks in Taranaki and two on the East Coast, along with offshore areas in Taranaki and Canterbury and Great South Basins.

The results of block offer 2013 are expected to be announced in December.

"Oil and gas operations create high-paying jobs and help fund schools, hospitals, and roads, while having a significant flow-on effect to other businesses across the economy. Northland has been particularly hard hit by the minerals boom in Australia and I hope this will help attract our people back to the opportunities that exist right here," Mr Sabin says.

Greenpeace views deep sea oil drilling as a highly risky activity, with exploration being the riskiest phase. And has not been placated by the government's stated intention of seeking responsible outfits to do the work.

"The risks to New Zealand are greatly exacerbated by the extent of our nation which is coastal," Steve Abel from Greenpeace New Zealand says.

"And the degree to which our economy is reliant on that marine ecology, in terms of the fisheries sector, but also in terms of our coastal lifestyle, tourism," he says.

"I don't think there ought to be any deep sea oil drilling at all in New Zealand."

Mr Abel says that the government is making it "as easy as possible" for the oil sector to enter New Zealand waters.

"The jobs in the oil sector are minuscule compared with the jobs that are dependent on the lack of oil washing up on our beaches," he says. And says that the cost of a potential clean up could cripple New Zealand's economy.

"It's a frontier technology and it's much more risky than shallow water drilling," he says