ExxonMobil Eyes Massive Siberian Shale Reserves

Dow Jones via Rig Zone ^ | June 05, 2012 | Simon Hall

[thackney]

Exxon Mobil Corp. is starting work with Russia's OAO Rosneft in assessing what could be massive reserves of shale oil in Western Siberia, the U.S. giant's Chief Executive Rex Tillerson said Tuesday.

"There is huge shale potential in shale rocks in West Siberia...we just don't know what the quality is," Mr. Tillerson said in an interview with Dow Jones Newswires.

The exploration work will take years to establish if the reserves are commercially viable, and are part of a strategic agreement Exxon reached earlier this year with state-controlled Rosneft, Russia's largest oil producer.

"Rosneft wished to participate in some resource development opportunities outside of Russia and we have invited them to farm into some areas in Canada and in Texas, in tight oil," Mr. Tillerson said, adding the agreement also called for Exxon to also help evaluate similar tight resources opportunities in Western Siberia.

Tight oil is mostly, but not exclusively, oil trapped in shale rock formations that requires advanced fracturing technology to release.

"The shales are basically the source rocks for conventional production in the region and anywhere you have large existing conventional production you are going to find source rocks," he said.

Mr. Tillerson also said he didn't rule out Exxon joining the Russia Barents Sea Shtokman natural gas project.

[Dilbert San Diego]

We have estimates of billions of barrels of oil locked up in shale deposits out west. Yet Exxon/Mobil is going to Siberia to develop shale oil, instead of developing in our own counry.

[17th Miss Regt]

I don’t blame them. This administration will not allow anyone to drill anywhere or anytime. So you go somewhere the administration has no say.

[Lonesome in Massachussets]

Political risk in the U.S. chills development.

[WellyP]

Will China try to steal it? Read The Bear and the Dragon”!

[Dogbert41]

Russia does not have an EPA or a Democrat Party.

[marron]

Companies are going to develop shale oil someplace. They can do it here, and put Americans to work, and hire American contractors, and pay money into American tax coffers, or they can put Russians to work and pay into Russia’s treasury.

They make their money either way. We can pay to pipeline it from Utah, or pay to transport it by tanker from Siberia. Its our choice.

[Colinsky]

They can do it here, and put Americans to work, and hire American contractors, and pay money into American tax coffers, or they can put Russians to work and pay into Russia’s treasury.

Or, they can hire Russians, drill in Russia, develop the supportive infrastructure in Russia, and then have Russia confiscate the whole shebang as soon as it becomes profitable.

[VeniVidiVici]

I’m thinking in about 5 or 10 years the Mideast is going to wish they had kept oil at about $30bbl.

[marron]

Exactly.

[Starboard]

“Yet Exxon/Mobil is going to Siberia to develop shale oil, instead of developing in our own counry.”

It’s not just Exxon that’s moving operations outside the US. Other large companies have also decided to relocate some divisions overseas. Given the current anti-business environment in the US, can’t blame them.