What went wrong? Fracking in Eastern Europe

Abstract

AbstractA few years ago, optimistic estimates claimed that Eastern Europe possessed large shale formations that seemed likely to produce great quantities of natural gas. In addition, the countries in the region had strategic incentives to develop a transparent domestic shale industry in order to reduce its reliance on gas from Russia. Nevertheless, political and social factors as well as differences in physical characteristics, prevented the U.S. experience from being replicable in Eastern Europe. In the end, most multinational energy corporations announced that they had abandoned efforts to find and produce natural gas from shale rock in Eastern Europe. The paper discusses the impact of shale gas exploration on the quality of democratic governance by comparing and contrasting fracking regulations adopted in the United States with those of Eastern Europe. The main research question attempts to ask and identify: “what are the factors that influence a democratic and fair governance of public natural resources”.