Monday, April 11, 2016

Ukraine has over one trillion cubic meters of gas


Gas Reserves in Ukraine exceed 1 trillion cubic meters, Ukraine’s Minister of Energy and Coal Industry Volodymyr Demchyshyn told Sputnik on Thursday on the sidelines of the Nuclear Security Summit in Washington, DC.

"We produce quite [a] lot of gas in Ukraine which now covers more than 60 percent of our country’s consumption… We will be increasing our gas production, and will become self-sufficient within a very short period of time," Demchyshyn said. "Reserves of Ukraine exceed 1 trillion cubic meters, while we consumed 34 billion cubic meters last year. We now produce 20 billion cubic meters ourselves."

Things are beginning to turn in Ukraine. We have had the royalty rates for oil and gas producers come down significantly. Now I see that the unpopular Prime Minister will resign and be replaced with a more, shall we say, malleable PM that the west wants to see in power. The currency is beginning to strengthen against the dollar.

Ukrainian currency may have found a low

Ukraine is a classic blood in the streets buy. The country wants to become independent of Russia regarding natural gas so I expect that the US and EU will be advising the government of Ukraine to keep its hands off of the gas industry. It also helps that Hunter Biden, Joe Biden's son, is on the board of directors of Burisma which is a 50/50 JV partner with Cub Energy. It is not coincidence that he was placed on that board and it certainly wasn't because he knows anything about oil and gas.

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