Shale Gas Brings Hopes, Smiles in 'Poland B'
Neglected by Russia during the partition times in the XIX century, Eastern Poland still lags behind the rest of the country.
Some hacks from Warsaw dubbed it “Poland B”. Yes, the economy is dominated by agriculture, wages are lower and ideas more conservative. But the rolling countryside is dotted with lakes, has a low crime rate, high social integration and a relaxed lifestyle, slowly turn weaknesses into strengths.
To draw attention to its benefits, authorities in Lubelskie coined the slogan, “A taste for life”, hoping to cash on growing number of tourists. Now they hope for another growth engine: shale gas.
The hilly city of Lublin, with its 350,000 inhabitants and a rich history, witnessed by the recently renovated Old Town, is the most important city on the eastern side of the Vistula river and the largest Polish town without an airport. The first planes are to take off next year. The new motorway to Warsaw is under construction, but will remain a dream well past 2015.
Narrow roads east of Lublin take you astonishingly quickly to the area famous for its huge coal mine, the newest in Poland. The Warsaw Stock Exchange listed LW Bogdanka S.A., provides over 3,000 jobs and aims to expand quickly to produce over 10 million tonnes of coal in 2014.
However it is not coal that Lubelskie pins its hopes upon now. It dreams of becoming a “Shale Gas El Dorado”.
“Gas may be a determining factor for our development” hopes the mayor of Lublin, Krzysztof Zuk. “Coal will remain the main source of energy for years to come, but in the light of the E.U. policy, we must refocus.”
“Besides Poland is dependent on Russian gas” - he reminds Natural Gas Europe - “so the domestic gas production also provides a chance for diversification and a cheaper fuel for our growing economy.”
Krzysztof , a journalist living in Lublin shares his namesake`s point of view, hoping that energy majors like Exxon and Chevron will transform Lubelskie.
He claims that his friends tend to support shale gas exploration. “We believe it`s safe, as long as nobody decides to cut corners. People here are not technophobic.”
The world ends East of Bogdanka. Old local roads, dotted with holes reminding us of Swiss cheese do not allow travel faster than 40 km/h, but soon a top of a drill rig pops out from woods.
Welcome to Syczyn, a small village not far from the point where borders of Poland, Ukraine and Belarus meet.
The rig rises out from the flat clearing, just behind the first dwelling of the village, marking the first attempt by Orlen Upstream to access the area's shale gas riches
“The decision to drill in Syczyn, in Wierzbica license, was made on the basis of the positive results of geological surveys of the area. We have waited impatiently for a chance to confirm our prospects.” – says Orlen Upstream CEO Wieslaw Prugar.
The drill rig runs 24 hours a day. The worksite sees at least 30 employees on average, over a hundred in general. The aim is to reach 3000mts.
Prugar expects that results of the laboratory examination of core samples will be ready in 5-6 months.
“On this basis, in the middle of next year, we will make the decision whether to continue our work in this area. If the outcome turns out to be promising, in mid 2012 we would like to drill horizontal wells both in Wierzbica and Lubartów license areas.”
The good working atmosphere is, in a way symobolized by the container that sits in the middle of the office table. Anyone at any time can fish out a pickled cucumber from the huge jar. These home-made delicacies are regularly supplied, straight from the landowners` larder.
Everyone likes traditional Central European food: service personnel consist of Poles, Czechs, Slovaks and Hungarians. Derrickhands come mainly from Czech Republic. Their employer, MND is one of the first foreign drilling company firms in Poland, hoping to secure its position on expected boom.
Portable residential units (referred to as ''containers'), are arranged as to form a kind of two-two level pueblo. They sit just behind a wide yellow line, surrounding the well and showing where helmets, goggles and gloves are compulsory. Its definitely not the same as being at home, but the makeshift residences are brand new and roomy.
There aren`t any bars in Syczyn, so workers started visiting restaurants in the area, but most of them have fallen for home made dishes prepared by local farmers` wives.
Apart from several jobs at the drilling place, feeding its staff is the main source of income for Syczyn.
The locals are welcoming. The village's most influential figure, the priest, confirms that shale gas is the most talked about subject.
“We are fascinated by this project” – he says – “I am one of them, so I have visited drilling place and met with Mr Prugar”, he smiles.
The priest explains, that in this poor borderland, even menial jobs are appreciated, as long as they are secure. He says that shale gas development would open new possibilities for youth. They wouldn`t have to emigrate anymore.
“Yes, we are striving for jobs here” – agrees a young woman. She says that the coal reserves in Bogdanka will be depleted after 2040. “Environment? We have survived all those coal mines, we are not scared by what happens much deeper.” – she shrugs, adding that regular meetings with company representatives are frequented by a third of Syczyn`s 150 inhabitants.
Krzysztof Zuk claims, that the Polish environmental regulations are more restrictive than in the North America. “We monitor mistakes made in the US and Canada, and we won`t repeat them here.”
He is an optimist. “Technologies coming from the US will repeat their success in Poland”. He seems completely sure, it must happen, sooner or later.
“Our economy needs cheaper gas. If we manage to reduce prices and increase domestic gas supply, our growth rate will become even more impressive and we`ll be able to stabilize the economy of the whole region”, says the mayor.
He estimates, that 15.000 jobs may be created directly by the new gas industry in Lubelskie. He also mentions that part of gas royalties will go to local communities, adding that future tax regulations should be satisfying for both locals and companies.
“We have eight large companies in our region, including Chevron, Exxon and Marathon, Orlen and PGNiG and we believe, that others will follow. Especially, because there is a very receptive climate in Lubelskie. It derives from our history and our current dependence on Russian imports.”, explains the mayor.
There is certainly something inspiring in Lubelskie. Some say, that doing any business in the “Poland B” is easier than anywhere in the “Poland A”. Among them is a manager of one of the eight large companies. “We were so lucky to engage here, and not in the Baltic Basin” – he breathes a sigh of relief.
“Have you noticed, that the old people here look somehow different?” – asks a Varsovian working in Lubelskie from time to time.
“Smile wrinkles. They have so many of them.”