No Bulgaria Fracking For Chevron

Brazil. Nigeria. Add Bulgaria to the list of countries where Chevron (NYSE: CVX), the second-largest U.S. oil company, is having some problems. The Eastern European country today banned Chevron from using the process known as fracking to extract shale gas there.

Bulgarian officials said Chevron has not yet been notified of the decision. Over the last weeks, thousands of people gathered at protest rallies across Bulgaria to protest against shale gas extraction and the use of fracking, fearing it could have a hazardous impact on the environment and people's health, the Associated Press reported.

Hydraulic fracturing, or fracking, is the process by which liquids and chemicals are injected into shale rock to separate oil and gas from the rock. Fracking, while cost-effective, is controversial and has been found to pollute drinking water supplies in various places in the U.S.

Last June, Chevron won a contract to develop Bulgarian shale assets as the country is searching for ways to break its dependence on Russian gas. Russia, one of the world's largest natural gas producers, exports a fair amount of that gas to Eastern European countries such as Bulgaria, Poland and others.

Chevron and other oil majors have been looking to Eastern Europe to tap into vast shale resources. In addition to Bulgaria, Chevron is exploring shale resources in Poland and Ukraine.

Royal Dutch Shell (NYSE: RDS-A), Europe's largest oil company, also tapping shale resources in Ukraine while Exxon Mobil (NYSE: XOM), the largest U.S. oil company, has a shale presence in Poland.