Russian energy conglomerates are excited to catch up with the fleeting US shale oil phenomenon. In the Samara region of Western Russia, members of several Russian oil companies met on Friday to attempt to begin the production of the Russian Domanik Shale formation.
Russia has been drilling oil for many years, however they have not breached the shale revolution’s techniques that have made the United States so successful. The backbone is already there (the pipelines, refineries, roads, and workforce) therefore, it should be a huge success once these technologies are realized.
The two prominent companies merging together for the development of the hard to reach regions are, Rosneft (the largest globally traded gas company in the world) and Statoil (the largest operator on the Norwegian continental shelf). They believe that they have to work together to become a “world class shale oil asset”.
The US energy information administration claims that Russia holds 75 billion barrels of shale oil, which is the most on the planet. Much of the United States’ success in the shale oil industry is due to innovative shale rock drilling techniques and the Bakken and three forks formations in North Dakota, South Dakota, and Montana. There is around 7.4 billion barrels of undiscovered oil in this region. However, it is estimated that this boom will only be around for another ten years or so. By 2015 the United States is projected to be the world’s largest oil provider thanks to shale oil’s impact on the industry, as well as stimulating its dwindling economy.
Rosneft and Statoil would spend three years creating an initial program that would decide the production potential of the shale formation Domanik. They will be using emerging technologies to drill at least six wells through 2021.
Other countries that are jumping into the oil boom phenomenon are Ukraine who has just signed a major shale deal with Chevron Oil, and Algeria.
Currently the United States is a kingpin country of the oil industry, but Russia is a newly emerging and quickly growing player.