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UNIT 2
PROSPECTS FOR THE DEVELOPMENT OF THE
OIL AND GAS INDUSTRY

The volume of oil and gas consumption in Ukraine in
recent years has risen many times, which caused substantial
growth of oil and gas import in Ukraine by foreign companies.

General overview
Ukraine, being a net importer of energy, is well endowed
with its own resources. Ukraine's oil and gas reserves are estimated
at the level of 2,3 billion barrels of oil equivalent, with natural gas
contributing 87% of the total. Ukraine's gas reserves account for
0,6% of total world proven gas reserves and 0,2% of oil reserves.
Ukraine`s hydrocarbon resources are estimated at 7-8
billion tons of fuel equivalent. Average annual oil and gas
production amounts to 18 billion cubic meters of natural gas and 4
million tons of crude oil and covers 25 % of the demand for
natural gas and 13 % of the demand for crude oil in Ukraine.
Crude oil and natural gas are imported primarily from Russia, or
through Russia from Turkmenistan (natural gas) and Kazakhstan
(crude oil). Oil and gas make up to 60 % of the primary fuel
consumption in Ukraine, including 40 % natural gas and 20 % oil.
There are three petroliferous regions in Ukraine: in the west
(the Carpathian region), in the east (the Dnipro-Donetsk region)
and in the south (the Black Sea - Azov Sea region).
The Dnipro-Donetsk basin is a major producing region of
Ukraine accounting for 90% of Ukrainian production from over
120 oil and gas fields. The cumulative production from the basin is
estimated at over 52 trillion cubic feet of gas and 1,3 billion barrels
of oil. Over 3,000 wells have been drilled in the basin to date. The
basin holds potential for deep gas exploration (deeper than 3.8km).
The Carpathian basin is relatively large - over 700 million
barrels of oil and 8 trillion cubic feet of natural gas. The
Carpathian foredeep has been explored to depths of 4.0km to
4.5km. Despite the extensive activities, deeper parts of the basin
offer very good potential for further exploration.

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