Last year, Chevron Corp. signed an agreement to bring the fracking revolution to Ukraine, hunting for natural gas trapped in shale rocks near the Polish border. Now the government that signed the agreement is gone, toppled by a popular uprising. And Russia's abrupt annexation of Crimea has cast doubt on Ukraine's future.
But Chevron isn't pulling out. The San Ramon oil company still has employees in Ukraine, although they have not yet begun exploring for gas. And the current administration has every incentive to stick with the agreement. The country depends on Russia for more than 50 percent of its natural gas. And Ukraine also badly needs income, analysts say.
"That's the best way for (Ukraine) to become financially solvent," said Amy Myers Jaffe, executive director of energy and sustainability at UC Davis. "It'll take a while. It doesn't solve the immediate crisis. But it's definitely the way forward."
In fact, Chevron may be in a better position to weather the crisis than other Western oil companies interested in Ukraine. Royal Dutch Shell last year signed an agreement with the government of then-President Viktor Yanukovych to explore a shale formation in eastern Ukraine, an area with a large population of ethnic Russians. Although Russian President Vladimir Putin insists he has no intention of seizing eastern Ukraine, many Western officials don't believe him.
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