Tweet
Global Insight
June 3, 2011
Armenia Signs MoU with US on Energy Exploration
BYLINE: Andrew Neff
The governments of Armenia and the United States yesterday (2 June)
signed a memorandum of understanding (MoU) on conventional and
unconventional energy resources, according to a press release by the
US Embassy in Armenia. The MoU provides a "framework" for knowledge
transfers and information sharing in the assessment of both
conventional and unconventional energy resources in Armenia. The MoU
also lays the groundwork for co-operation between the US Geological
Survey and the Armenian Ministry of Energy and Natural Resources in
carrying out technical studies of Armenia's energy resources,
including any potential shale gas resources in the country.
Significance:The Armenia-US MoU is similar in scope and purpose to a
MoU signed between the US and Ukraine back in February (seeWorld
Markets Energy: Ukraine: 16 February 2011:). In both cases, the US is
offering to conduct assessments of the two former Soviet countries'
energy potential, particularly in shale gas development, where the US
has pioneered hydraulic fracturing processes that have triggered a
veritable "revolution" in unconventional gas production. Like Ukraine,
Armenia is a net energy importer and is highly dependent on Russia for
gas imports. Armenia also faces an ongoing energy blockade imposed by
Turkey and Azerbaijan, and since Armenia must rely on Georgian transit
of Russian oil and gas, it has increasingly turned to its southern
neighbour, Iran, for help in meeting its energy needs (seeWorld
Markets Energy: Armenia - Iran: 1 June 2011:). The MoU with the US
could be a step towards providing Armenia with the tools to meeting
more of its own energy requirements, should the country prove to have
sufficient shale gas production potential.
June 3, 2011
Armenia Signs MoU with US on Energy Exploration
BYLINE: Andrew Neff
The governments of Armenia and the United States yesterday (2 June)
signed a memorandum of understanding (MoU) on conventional and
unconventional energy resources, according to a press release by the
US Embassy in Armenia. The MoU provides a "framework" for knowledge
transfers and information sharing in the assessment of both
conventional and unconventional energy resources in Armenia. The MoU
also lays the groundwork for co-operation between the US Geological
Survey and the Armenian Ministry of Energy and Natural Resources in
carrying out technical studies of Armenia's energy resources,
including any potential shale gas resources in the country.
Significance:The Armenia-US MoU is similar in scope and purpose to a
MoU signed between the US and Ukraine back in February (seeWorld
Markets Energy: Ukraine: 16 February 2011:). In both cases, the US is
offering to conduct assessments of the two former Soviet countries'
energy potential, particularly in shale gas development, where the US
has pioneered hydraulic fracturing processes that have triggered a
veritable "revolution" in unconventional gas production. Like Ukraine,
Armenia is a net energy importer and is highly dependent on Russia for
gas imports. Armenia also faces an ongoing energy blockade imposed by
Turkey and Azerbaijan, and since Armenia must rely on Georgian transit
of Russian oil and gas, it has increasingly turned to its southern
neighbour, Iran, for help in meeting its energy needs (seeWorld
Markets Energy: Armenia - Iran: 1 June 2011:). The MoU with the US
could be a step towards providing Armenia with the tools to meeting
more of its own energy requirements, should the country prove to have
sufficient shale gas production potential.