In November 5th, Chevron signed contract with the Ukrainian government to develop oil and gas in western Ukraine for 50 years. According to the agreement, the Chevron would invest $350 million on exploratory a project while the total investment could reach $10 billion.

 

In the following five years, Chevron will plan to do seismic tests and drill wells on the Oleska Block, which is containing large amounts of rock. The company is aimed to find profitable oil and gas with the hydraulic fracturing, or fracking technology. But it has not got European support due to its projects can influence the groundwater and geology stable.

 

Besides the contract with Chevron Company, the Ukraine has also signed a deal with Royal Dutch Shell. The trend can fully satisfy its gas need. And if this environment keeps, it can have the potential to export energy resources by 2020. 

 

Ukraine has the same scenario with other Eastern countries, it its rich energy resources are been discovered and exploited by investment companies, it would also make a killing.

 

Ukraine imported about 50 billion cubic meters of natural gas in which majority are from Russia. While it produced about 19 billion cubic meters.

 

It is possible that Ukraine would meet the domestic need and decline energy import because the production from the Chevron and Shell can prior provide production to the nation.

 

If Chevron and the Shell find and exploit, Ukraine would be dependent on itself. If Ukraine and other Eastern European countries became producers, it will significant challenged their supplies, like Russia, Norway and Algeria.

 

Ukraine is partially dependent on itself to produce gas by conventional extraction and partially dependent on Russia’s Gazprom. But in 2006 and 2009, Gazprom has stop energy supplies due to the pricing disagreement, causing the Ukraine pay higher prices for natural gas. So the deal with Chevron is a win –win.

 

Recently, Chevron stopped work on s site in eastern Romania due to the demonstration in that area. Last month, it also planned to stop shale gas production in the area due to an ineffectual rule.

 

Since successfully entering Poland in 2009, the company has gradually ventured more areas in East European. This sign is its effort to realize its targets though delayed for more than one year.

 

Though the drilling had got the Ukraine government approval, Ukraine does not go smooth in the discovery road. It had to handle the details about 50-50 agreement with a local partner and the local protest.