Theoil industry in Poland began atBóbrka Field in 1853[citation needed], followed by the first refinery in 1854. Poland was the third most productive region in the world in 1900. It now has only a small, mostly state-owned component, with production from its Permian Basin in the west, small and very old fields in the Carpathians in the south, and offshore in theBaltic Sea.
Production of significant quantities ofnatural gas orpetroleum from shale or tight (low permeability) reservoirs is in large part dependent on the social acceptance and technical and commercial viability ofhydraulic fracturing. As of 2013 only 3% of the Poles opposed fracking.[1] Leasing forunconventional shale plays in Poland began in 2007.[2] But, as of 2013, the results of exploration efforts, as well as government regulation,[3] have been disappointing, and estimates of the size of the total resource have been substantially reduced.[2] Data indicates a substantial resource, but the permeability of the rocks, combined with the relative complexity of the faulting in some areas, have made success elusive. In 2013, theEnergy Information Administration, a U.S. agency, estimated that 146 trillion cubic feet of shale gas and 1.8 billion barrels (290×10^6 m3) oftight oil could be economically recovered from the shales in Poland using present technology.[2] However, an estimate published in March 2013 of recoverable shale gas reserves by thePolish Geological Institute was 24.8 trillion cubic feet.[4] It remains to be seen whether the lack of reservoir permeability can be overcome.
Poland was dependent on a Soviet era gas pipeline system which brings in only expensive Russian gas. Power generation has been based on Poland's extensive reserves of coal, principallylignite. Development of a domestic gas industry to replace Russian imports is highly desirable as would the use of gas to retire or convert coal fired generation plants. Drilling for shale resources began in June 2010. But, as of July 2013, none of the wells which have been completed have produced gas in commercial quantities. ConocoPhillips, which purchased the most prospective geological area from Lane Energy Poland, was able to produce gas and oil in sustainable volumes. But, their costs were too high to justify the project.ExxonMobil,[5] which positioned itself in the Lublin Basin, a highly faulted area, could never get a sustainable test, despite spending huge sums on geological research. Chevron also stubbed its toe in the Lublin Basin area, after receiving some bad geological advice.Talisman Energy also failed, andMarathon Oil drilled where there was little/no prospective shale resource. All have pulled out, leaving the Polish Oil and Gas Company as the prime company in the shale gas and tight oil plays.[3]
In the absence of regulation acceptable to the drillers who have the technology and resources to engage in extensive exploration, as of 2013, the extent of the tight oil and shale gas resource in Poland remains unknown, although it is believed by some informed observers that it has the potential to supply the needs of Poland for hundreds of year.[1] However, using current technology, it is considered likely that it will be more of a national security mandate than a commercial venture any time soon.
In addition to exploration for tight oil and shale gas by international firms there is a small Polish oil and gas industry with some oil and gas production:
Polskie Górnictwo Naftowe i Gazownictwo (PGNiG, literally: Polish Petroleum and Gas Mining) is a Polish state-controlledoil andnatural gas company, which deals with theexploration and production of natural gas and crude oil, natural gas import, storage and distribution and sales of natural gas and crude oil. PGNiG is one of the largest companies in Poland and is listed on the Warsaw Stock Exchange
Przedsiębiorstwo Poszukiwań i Eksploatacji Złóż Ropy i Gazu "Petrobaltic" S.A. (Exploration and Mining of Petroleum and Gas DepositsJoint stock company "Petrobaltic") was set up in November 1990. On 1 January 1999, the firm was transformed in limited liability company and the only shareholder become the State Treasury. The company is the only firm in Poland performing exploration and production ofcrude oil and gas in theBaltic Sea.B3 oil field is currently in production and has a 2006 production of 1.9 million bbl/year. The company has its head office inGdańsk. Exploration and exploitation of oil and gas deposits are performed with three drilling platforms:Petrobaltic,Baltic Beta and Jacket-type platform called "PG-1".
Polmin (English: State Factory of Mineral Oils, Polish: Panstwowa Fabryka Olejow Mineralnych) was a Polish state-owned enterprise, which controlled excavation, transport and distribution of natural gas. Founded in 1909,[6] it was nationalized in 1927, with main office inLwów.[7] Polmin operated a large oil refinery inDrohobych, which in late 1930s employed around 3000 people. The refinery purified oil extracted from rich fields of southern part of theSecond Polish Republic (Gorlice,Borysław,Jasło, and Drohobych). Some Polish-language sources claim that Polmin refinery in Drohobycz was in late 1930s the biggest in Europe.[8]
The first oil well was drilled at Bóbrka Field in 1853; it was 7 years after drilling the first oil well in Baku settlement (Bibi-Heybat) in 1846 on Apsheron peninsula.[citation needed] The Bóbrka oil mine is a designatedHistoric Monument of Poland.[9]
TheB3 oil field is an oil and gas field in theBaltic Sea. The field is located 80 km off the Polish coastal townRozewie. The crude oil is also referred to as Rozewie crude. TheAPI gravity of the crude is 42-43 andsulfur content of 0.12 wt%. The jack up rig Baltic Beta located on the field takes care of processing, drilling and accommodation. The associated gas is sent through a pipeline to the heat and power generating plant inWładysławowo. Most of the oil produced from B3 is shipped by tanker to Gdańsk and fed to theGdańsk refinery as a small part of the refinery feedstock.
TheB8 oil field is a major oil field in the Polish sector of theBaltic Sea about 70 km north ofJastarnia. The field was discovered in 1983 and started producing oil in 2006. The field currently (2023) accounts for four per cent ofPoland’s oil production.
TheBarnówko-Mostno-Buszewo oil field is anoil field that was discovered in 1993. It began production in 1994. Its proven oil reserves are about 90 million barrels (14×10^6 m3) and proven reserves of natural gas are around 350 billion cubic feet (9.9 billion m³).[10]
TheDębno oil field is an oil field that was discovered in 2004. It began production in 2005. Its proven oil reserves are about 30 million barrels (4.8×10^6 m3) and proven reserves of natural gas are around 283 billion cubic feet (8 billion m³).[11]
TheLubiatów-Międzychód-Grotów oil field is an oil field that was discovered in 1993. It began production in 1994. Its proven oil reserves are about 38 million barrels (6.0×10^6 m3) and proven reserves of natural gas are around 160 billion cubic feet (4.5 billion m³).[10]
Grupa Lotos S.A. was a vertically integrated oil company based inGdańsk. The company is listed in the Polish indexWIG 20. Its main activity branches were: crude oil production, refining and marketing of oil products. The company was a leader in lubricants on the Polish market. Grupa Lotos was a producer of unleaded gasoline, diesel, fuel oils, aviation fuels, motor and industrial lubricants, bitumens and waxes. It merged with PKN Orlen in 2022.
PKN Orlen (Polish:Polski Koncern Naftowy Orlen) (WSE: PKN) is a major Polishoil refiner, and petrol retailer. The company is the Central Europe's largest publicly traded firm with major operations in Poland,Czech Republic, Germany,Slovakia, and theBaltic States. In 2009, it was ranked in theFortune Global 500 as the world's 31st largest oil company and the world's 249th largest company overall,[13] and was the only Polish company ranked by Fortune. It currently (2012) ranks 297th, with a revenue of over US$36.1 billion.[14]
Gaz-System, Operator Gazociągów Przesyłowych GAZ-SYSTEM S.A., is a designated natural gastransmission system operator inPoland. The company was established on 16 April 2004 as a wholly owned subsidiary ofPGNiG under the name PGNiG – Przesył Sp. z o.o. On 28 April 2005, all shares of the company were transferred to the State Treasury of Poland and the current name of the company was adopted on 8 June 2005. Gaz-System owns and operates all gas transmission and distribution pipelines in Poland, except theYamal–Europe pipeline owned by EuRoPol Gaz S.A.[15] The company is also responsible for construction of thePolskie LNG terminal atŚwinoujście and theBaltic Pipe pipeline between Poland andDenmark.[16][17][18]
Naftoport Ltd (Polish:NAFTOPORT Sp. z o.o.) is a company which managescrude oil shipment and deliveries. It is located inGdańsk. Naftoport Ltd was established in June 1991 by several Polish oil companies and Marine Commercial Port in Gdańsk. The company oversees operations of the terminal for reloading of crude oil and products inPort of Gdańsk.
PERN Przyjazn SA (Polish:Przedsiębiorstwo Eksploatacji Rurociągów Naftowych "Przyjaźń" Spółka Akcyjna), joint stock Oil Pipeline Operation Company "Przyjaźń" is one of leading companies for oil transportation and storage inPoland. The company is based inPłock and overlooks catering of oil and gas through Poland to eastern European markets.
TheDruzhba pipeline (Russian:нефтепровод «Дружба»; also has been referred to as the Friendship Pipeline and the Comecon Pipeline) is the world's longestoil pipeline and in fact one of the biggest oil pipeline networks in the world. It carries oil some 4,000 kilometres (2,500 mi) from the eastern part of the EuropeanRussia to points inUkraine,Belarus, Poland,Hungary,Slovakia, theCzech Republic andGermany.[19] The network also branches out into numerous pipelines to deliver its product throughout the Eastern Europe and beyond. The name "Druzhba" means "friendship", alluding to the fact that the pipeline supplied oil to the energy-hungry western regions of theSoviet Union, to its "fraternal socialist allies" in the formerSoviet bloc, and to westernEurope. Today, it is the largest principal artery for the transportation of Russian (and Kazakh) oil across Europe.
