) and Turkey's state energy company TPAO met recently to discuss
shale gas exploration prospects in that country.
Per the early 2011 study conducted by the U.S.government, Turkey
is believed to hold about 15 trillion cubic feet of technically
recoverable shale gas. TPAO considers its partnership with
ExxonMobil helpful in exploring gas in a more efficient manner.
Currently, ExxonMobil is contemplating the potential at Trakya,
in western Turkey. Based on the outcome of the prospects in the
region, the company intends to take its decision of whether to
proceed or not.
TPAO has already inked a similar deal with Europe's largest
Royal Dutch Shell plc
) in November 2011. Per the agreement, Royal Dutch Shell will help
TPAO to search for oil and gas in the Mediterranean and
southeastern Turkey, with the key focus of the former being
development of gas deposits near the southeastern city of
An analysis on global shale gas prospects in April 2011
conducted by Advanced Resources International (
) for the U.S.government established Turkey, France, Poland,
Ukraine, South Africa, Morocco and Chile as countries with immense
potential for supply enhancement using shale.
According to the ARI study, the Anatolian Basin in the southeast
and Thrace Basin to the west of Istanbul were recognized as the key
potential areas of shale gas production in the country.
Energy companies had once rushed to search for unconventional
oil and gas production methods, when they felt that demand was
high. This resulted in huge reserves of natural gas through a
technique called fracking. The outcome was ample supplies that
reduced prices globally.
Given its large base, achieving growth in oil and natural gas
production has been a challenge for ExxonMobil over the past
several years. With the established oil-producing regions of Europe
and North America well beyond their prime, the search for growth
has pushed the company into riskier regions.
ExxonMobil holds a Zacks # 3 Rank, which translates to a Hold
rating for a period of one to three months. For the long term, we
maintain our Neutral recommendation.
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