9 Jun 2010 14:37

Little prospect for shale gas production in Russia

MOSCOW. June 9 (Interfax) - There are few prospects for shale gas production in Russia, Energy Minister Sergei Shmatko said in the State Duma.

The companies engaged in shale gas production in the U.S. are not posting good financial results, he said.

"The companies that are producing shale gas, whose shares are being bought up on the stock market and are overheated because of it, are not showing very good operating results," Shmatko said.

Moreover, there are significant environmental risks associated with shale gas production, he said.

Shale gas does resolve the transportation issue, but that is not a problem Russia faces. "Shale gas is regional in nature. It exists in many regions and does not require creation of complex transportation infrastructure. But that task has already been resolved in our country, so extracting gas by traditional means remains much more appealing than development of shale gas technology," he said.