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Saturday, November 23, 2013

Ukraine to make a decision for the future of shale

Ukraine, a former soviet country and transitioning (or at least having discussions of transitioning or not) a pro-EU country now, should be feeling a lot of pressure taking the next step when it comes to natural gas, particularly shale gas. Hit by gas cut-offs from Russia, on the other hand, still being an important bridge to Europe for Russian gas and surrounded by new shale gas exploration in nearby countries every step needs careful consideration for Ukraine. Benefiting its own shale resources may seem like more down the way for Ukraine. Big operators likely to invest in US gas more than anywhere else which in accordance creates a new discussion in the US itself of exporting LNG. Possible LNG exports from US would lower gas prices in Europe and would help Europe to recover from crisis ongoing. Consecutively, easing Ukrainian pro-EU transition and most probably easing their exploration activities on their very own soil. As seen, short-term and long-term results vary with a lot of other variables affecting Ukraine's decision, giving the taste of Middle East politics nowadays.

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