Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here’s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Betting on Mediterranean shale: 3 plays, 1 winner

By James Stafford - posted Friday, 1 February 2013


The Mediterranean has joined the shale game, but as most of Europe's Mediterranean countries drag their feet, all eyes are on Israel, Turkey, and Algeria.

For Israel, it will be a slow road without the majors.

For Algeria, it's full speed ahead, in theory-but the foreign interest is just dabbling for now due to a lack of shale infrastructure.

Advertisement

For Turkey, the situation is more promising thanks to a renewed interest by the majors and a near-perfect blend of good governance and attractive fiscals.

Here's what the playing field looks like:

Turkey

Turkey is the best bet here. In Turkey, it's all about the Dadas Shale, in which the majors have recently expressed a renewed interest, making the game immediately more promising for the North American juniors who are betting heavily on this play.

The Dadas Shale is being compared to Texas' Eagle Ford shale and Oklahoma's Woodford shale in both size and potential. What is that potential? Well, those who are investing in it say it has more than 100 billion barrels of original oil in place.

While nothing's being produced, testing is about to begin and new technology has the majors and juniors highly optimistic.

Advertisement

Positives

  • Everyone likes working with the Turkish government-permits are fast and bureaucracy is kept to a minimum. Turkey is too keen to become a regional energy hub to let bureaucracy stand in the way. There's just too much riding on this.
  • Fiscal terms are very attractive: foreign companies get a flat 12.5% royalty tax and a 20% corporate tax rate
  • The infrastructure is already there; it's easy to refine and get to your choice of markets
  • Shell has recently renewed its interest in Dadas (it's about to drill five wells)
  • ExxonMobil is in talks with the government right now about a Dadas license of its own

Negatives

  1. Pages:
  2. Page 1
  3. 2
  4. 3
  5. All

This article is part of OilPrice.com's premium offering.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

4 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

James Stafford is the publisher of OilPrice.com.

Other articles by this Author

All articles by James Stafford

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Article Tools
Comment 4 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy