“Compared with other countries in the region Ukraine is at an early stage of assessing its reserves of shale gas and coal bed methane,” HIS Executive Vice President and HIS CERA COB Daniel Yergin told “k:” on the country’s prospects of the production of alternative fuel, according to KyivWeekly.

“The analysis conducted by HIS CERA shows that Ukraine could have quite substantial reserves of alternative fuel. The main issues that have to be addressed are the potential volumes of production of such reserves and what will be the cost,” Daniel Yergin warned. “The experience of shale gas exploration in the U.S. points to the necessity of caution. It clearly shows that believing there are substantial resources without conducting a thorough inspection of this fact would have been a grave mistake.”

Nevertheless, Ukraine has great potential to attract investments if it helps create internationally competitive conditions, primarily the possibility of financial gains depending on the volumes and prices of produced gas, confidence in legal ownership rights and system of regulating bodies, the pace of potential investments (which is influenced by the effectiveness of the regulatory process) and the effectiveness of the decision making process, the expert who is the winner of the Pulitzer Prize and United States Energy Award for Lifetime Achievements in the Energy Sector and Fostering International Mutual Understanding continued.

Mr Yergin hailed the “huge and most likely unprecedented efforts” that the Ukrainian government is making to find an appropriate method of working with investors in the oil and gas sector and this is clearly reflected in the Dialog on Policy Issues of Ukraine.

This past summer Naftogas Ukrainy commissioned the U.S. consulting company IHS CERA, which specializes in expert assessments and making recommendations to governments and private companies, to conduct an independent expert assessment of the state of Ukraine’s gas market.