Oil industry in Poland

Production of significant quantities of natural gas or petroleum from shale or tight (low permeability) reservoirs is in large part dependent on the social acceptance and technical and commercial viability of hydraulic fracturing. As of 2013 only 3% of the Poles opposed fracking.[1] Leasing for shale plays in Poland began in 2007.[2] But, as of 2013, the results of exploration efforts, as well as government regulation,[3] have been disappointing, and estimates of the size of the total resource have been substantially reduced.[2] Data indicates a substantial resource, but the permeability of the rocks, combined with the relative complexity of the faulting in some areas, have made success elusive. In 2013, the Energy Information Administration, a U.S. agency, estimated that 146 trillion cubic feet of shale gas and 1.8 billion barrels (290×10^⁶ m³) of tight oil could be economically recovered from the shales in Poland using present technology.[2] However, an estimate published in March 2013 of recoverable shale gas reserves by the Polish Geological Institute was 24.8 trillion cubic feet.[4] It remains to be seen whether the lack of reservoir permeability can be overcome.

Poland has been dependent on a Soviet era gas pipeline system which brings in only expensive Russian gas. Power generation has been based on Poland's extensive reserves of coal, principally lignite. Development of a domestic gas industry to replace Russian imports is highly desirable as would the use of gas to retire or convert coal fired generation plants. Drilling for shale resources began in June 2010. But, as of July 2013, none of the wells which have been completed have produced gas in commercial quantities. ConocoPhillips, which purchased the most prospective geological area from Lane Energy Poland, was able to produce gas and oil in sustainable volumes. But, their costs were too high to justify the project. ExxonMobil,[5] which positioned itself in the Lublin Basin, a highly faulted area, could never get a sustainable test, despite spending huge sums on geological research. Chevron also stubbed its toe in the Lublin Basin area, after receiving some bad geological advice. Talisman Energy also failed, and Marathon Oil drilled where there was little/no prospective shale resource. All have pulled out, leaving the Polish Oil and Gas Company as the prime company in the shale gas and tight oil plays.[3]

In the absence of regulation acceptable to the drillers who have the technology and resources to engage in extensive exploration, as of 2013, the extent of the tight oil and shale gas resource in Poland remains unknown, although it is believed by some informed observers that it has the potential to supply the needs of Poland for hundreds of year.[1] However, using current technology, it is considered likely that it will be more of a national security mandate than a commercial venture any time soon.

Baltic Beta

In addition to exploration for tight oil and shale gas by international firms there is a small Polish oil and gas industry with some oil and gas production:

• Polskie Górnictwo Naftowe i Gazownictwo (PGNiG, literally: Polish Petroleum and Gas Mining) is a Polish state-controlled oil and natural gas company, which deals with the exploration and production of natural gas and crude oil, natural gas import, storage and distribution and sales of natural gas and crude oil. PGNiG is one of the largest companies in Poland and is listed on the Warsaw Stock Exchange
• Przedsiębiorstwo Poszukiwań i Eksploatacji Złóż Ropy i Gazu "Petrobaltic" S.A. (Exploration and Mining of Petroleum and Gas Deposits Joint stock company "Petrobaltic") was set up in November 1990. On 1 January 1999, the firm was transformed in limited liability company and the only shareholder become the State Treasury. The company is the only firm in Poland performing exploration and production of crude oil and gas in the Baltic Sea. B3 oil field is currently in production and has a 2006 production of 1.9 million bbl/year. The company has its head office in Gdańsk. Exploration and exploitation of oil and gas deposits are performed with three drilling platforms: Petrobaltic, Baltic Beta and Jacket-type platform called "PG-1".

Grupa Lotos headquarters in Gdańsk, Poland

• Grupa Lotos S.A. is a vertically integrated oil company based in Gdańsk. The company is listed in the Polish index WIG 20. Its main activity branches are: crude oil production, refining and marketing of oil products. The company is a leader in lubricants on the Polish market. Grupa Lotos is a producer of unleaded gasoline, diesel, fuel oils, aviation fuels, motor and industrial lubricants, bitumens and waxes.

PKN Orlen headquarters in Płock, Poland.

• • The Gdańsk refinery is an oil refinery located in Gdańsk owned by Grupa Lotos. The refinery capacity is 210 kbpd of crude oil and it has a Nelson complexity index of approximately 10.
• PKN Orlen (Polish: Polski Koncern Naftowy Orlen) (WSE: PKN) is a major Polish oil refiner, and petrol retailer. The company is the Central Europe's largest publicly traded firm with major operations in Poland, Czech Republic, Germany, and the Baltic States. In 2009, it was ranked in the Fortune Global 500 as the world's 31st largest oil company and the world's 249th largest company overall,[12] and was the only Polish company ranked by Fortune. It currently (2012) ranks 297th, with a revenue of over US$36.1 billion.[13]
  • The Płock refinery is an oil refinery and petrochemical complex in Płock owned by PKN Orlen. The refinery has a Nelson complexity index of 9.5 and a capacity is 276 kbpd of crude oil.
• Gaz-System, Operator Gazociągów Przesyłowych GAZ-SYSTEM S.A., is a designated natural gas transmission system operator in Poland. The company was established on 16 April 2004 as a wholly owned subsidiary of PGNiG under the name PGNiG – Przesył Sp. z o.o. On 28 April 2005, all shares of the company were transferred to the State Treasury of Poland and the current name of the company was adopted on 8 June 2005. Gaz-System owns and operates all gas transmission and distribution pipelines in Poland, except the Yamal–Europe pipeline owned by EuRoPol Gaz S.A.[14] The company also responsible for construction of the Polskie LNG terminal at Świnoujście and the Baltic Pipe pipeline between Poland and Denmark.[15][16][17]
• Naftoport Ltd (Polish: NAFTOPORT Sp. z o.o.) is a company which manages crude oil shipment and deliveries. It is located in Gdańsk. Naftoport Ltd was established in June 1991 by several Polish oil companies and Marine Commercial Port in Gdańsk. The company oversees operations of the terminal for reloading of crude oil and products in Port of Gdańsk.
• PERN Przyjazn SA (Polish: Przedsiębiorstwo Eksploatacji Rurociągów Naftowych "Przyjaźń" Spółka Akcyjna), joint stock Oil Pipeline Operation Company "Przyjaźń" is one of leading companies for oil transportation and storage in Poland. The company is based in Płock and overlooks catering of oil and gas through Poland to eastern European markets.

During summer 2013 "Occupy Chevron" protesters occupied the field near Żurawlów in the Grabowiec district where Chevron Corporation planned to drill an exploratory well.[20] This type of activity is becoming more common.

• History of Polish Gas Industry
• Mir-Babayev M.F. Brief history of the first drilled oil well; and people involved - "Oil-Industry History" (USA), 2017, v.18, #1, p.25-34.