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Shale gas projects to create over 150,000 jobs in next decade?


Shale gas exploration in Poland could create approximately 155,000 new jobs over the next 10 years, mainly in the metallurgy sector, under a baseline scenario envisaging that concession-holders will drill an average of 500 test wells a year during this period, according to a study by the Kosciuszko Institute, a think-tank. The figure would reach 190,000 in the optimistic scenario (750 wells) and 120,000 in the pessimistic one (250 wells), the Institute calculates.

Other sectors expected to benefit in terms of job creation, apart from metallurgy, include production of machinery, power generation, and retail and wholesale trade, which would deliver about half of the new jobs, according to the study.

The estimate is based on a test well cost of PLN 31m (approx. €7.6m), taking into account current costs in Poland and the US and their anticipated decline. It also takes into consideration the projected exploration expenditures of state-owned PGNiG of PLN 27.5bn (€6.8bn) during the next decade.

The Environment Ministry has so far issued over 100 shale-gas concessions to companies such as Chevron, ConocoPhillips, Talisman Energy, PGNiG, Lotos or Orlen Upstream. First test wells have been drilled by PGNiG and Lane Energy.

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