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Learn energy lessons from Ukraine, North Dakota Sen. says
by Daniel J. Graeber
Washington DC (UPI) Mar 28, 2014


Energy company JKX unfazed by Ukraine's troubles
Washington DC (UPI) Mar 28, 2014 - Despite recent political turmoil, JKX Oil & Gas, a company focused on Ukraine, said its shale gas production was in line with expectations.

Ukraine in November descended into chaos after the former administration of Viktor Yanukovych decided to suspend efforts to sign free trade and association agreements with the European Union. He was ousted last month and Russia has since annexed the Ukrainian peninsula of Crimea.

Paul Davies, chief executive officer of JKX, said he was certain exploration and development programs in Ukraine would proceed as planned.

"We have delivered our targeted production growth and continued to build our reserve base," he said in a statement Thursday.

Ukraine is one of the Eastern European countries rich in shale natural gas. JKX said it's production in Ukraine for 2013 averaged 9,731 barrels of oil equivalent per day, an 18 percent increase from the previous year.

The country's Rudenkovskoye shale deposit, Davies said, is the "largest untapped gas resource" in the country.

The Ukrainian government has said there may be enough natural gas in shale reserve areas to meet the country's needs without imports.

Energy security threats in Eastern Europe are indicative of how important it is for North America to develop its own reserves, a North Dakota senator said.

Ukrainian Prime Minister Arseniy Yatsenyuk said ousted President Viktor Yanukovych left the economy in ruins. A Yanukovych decision in November to suspend efforts to move closer to the European Union sparked national protests that lasted through February.

Russia has since annexed the Crimean peninsula, raising concerns about the Kremlin's influence in the region. European consumers get about a quarter of their gas needs met by Russia, though the bulk of that flows through the Soviet-era transit network in Ukraine.

The House and Senate this week passed a $1 billion aid package for Ukraine.

U.S. Sen. John Hoeven, a North Dakota Republican who visited Ukraine last week, said Russia's energy power should serve as a lesson for North America. Recent events in Ukraine, he said, "illustrate the importance of developing our own domestic energy resources to achieve energy security, which is central to economic and national security."

North Dakota is the second-largest oil producing state in the country.

U.S. Sen Carl Levin, D-Mich., chairman of the Senate Armed Services Committee, said the legislation "will support Ukraine's efforts to free itself from captivity to Russian energy supplies."

Some U.S. lawmakers have pressed for more oil and natural gas exports to Europe to counter Russia's influence.

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