In Focus (#06 June 2014)

Anchoring the Oil and Gas Market?

by Olga A. Usenko

In order to reduce the dependence of Ukraine on energy supplies, last year the former government focused on enlisting global energy heavyweights into exploring and producing natural resources. Shale gas was the subject of their concern in the country. Even more, an attractive and extremely favorable for foreign investors mechanism of production sharing agreement was developed. Unfortunately, the annexation of Crimea and political unrest in Eastern Ukraine has put into question, temporally,  exploration of unconventional resources for an uncertain period of time.

Against the background of circumstances — diversification of supply channels, rising domestic production, introducing energy efficiency technologies — the importance and sensitivity of energy security were all proved. 

Nonetheless, the current attention being paid to the oil and gas sector moved into domestic reforms. Ukraine’s membership of the European Energy Community appeared to be an anchor for this perspective. Such long-expected changes are likely to occur in regulation of the subsoil, dismantling of corruption schemes and healthy competition on the market. The major issues mentioned became the subject of the current review compiled by our contributors.

Happy reading,
Olga Usenko

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