What’s the attitude toward Poland?
A: In Poland, a few things slowed it down. The regulatory proposals had the biggest impact. There was a proposal for a high tax. There was a proposal that the independent regulator would take some equity. That turned the industry off. Those have all been retracted, and it’s 180 degrees from that.
They’ve been listening to the industry. They’ve tried to put together a fiscal proposal that’s attractive from a tax perspective and less cumbersome. That’s what’s in the market today and passing through parliament.
Q: What’s next in the U.S. for shale and hydraulic fracturing?
A: There’s still a lot to play for on the technology side. Productivity is still so low. That’s an opportunity. If you’re recovering 10 percent of gas in place and 5 percent of oil in place, you’re still looking at a big opportunity. There’s a lot of research and development being done on fracturing fluid, proppants (sand or other particles that keep fractures open so oil and gas can flow into a well), well spacing and all these different things. Even seismic and answering the question of whether you can do something to tell you how the fracture is going to play out, I think that will be a challenge the industry will work on for a while. If you can go from 10 percent to 20 percent, that’s huge.