Wednesday, September 4, 2013

Why Is Chevron Still Betting On Eastern Europe's Shale Dream?

Eastern Europe is eyeing energy independence through a shale gas revolution. The region has traditionally relied on Russia for its energy needs. Poland is the largest European Union economy in Eastern Europe which has recently shown an impressive 0.8% quarterly economic growth indicating an economic upswing. Poland was betting its energy independence on its massive shale gas reserves. But things turned sour when exploration firms found less gas and estimates were drastically cut as energy firms started packing their bags to leave the country. But the U.S oil major Chevron Corp (CVX) is still betting on Poland's unconventional resources.
In this article, I will discuss the initial signs of improvement shown by the Polish economy, its shale gas ambitions and the dominant role that Chevron is now playing in the country. Although the article is mostly about Chevron and Poland's shale gas ambitions, I would also like to highlight the recent rally of the two Polish ETFs.
Economic Revival
According to Bloomberg's survey, Poland's recent GDP growth number was above market's growth expectations of 0.5% to 0.7%. Warsaw-listed BRE Bank SA has identified that ... Read More