Why Europe Needs Home Grown Gas

The Financial Times today reported that calculations by the UK's Department of Energy and Climate Change, showed that higher energy bills forced an extra 1m British households into “fuel poverty” in the space of a year.

The number of households compelled to spend at least 10 per cent of their annual incomes on natural gas and electricity grew from 4.5m in 2008 to 5.5m households in 2009.

Energy bills continue to rise significantly. Users will be seeing a 25 per cent rise in British Gas charges in the space of eight months, once an August rate hike comes in effect.

Consumers throughout Europe face the prospects of significant rate increases as a result of oil indexed long-term gas contacts between local utilities and the Russian gas supplier Gazprom.

Gas from Russia and Caspian nations is plentiful and promises to be delivered in the future by pipeline ventures such as Nabucco and South Stream. But for those focused on energy security, only domestic sources can ease the fear of shortages caused by economic or political disputes.

Unconventional gas development has changed the energy equation in the United States; it may well be US gas that arrives one day on Europe's shores.

Yes, renewables do provide a (limited) option, but those European nations with conventional or unconventional gas resources, really must recognize how lucky they are and put those resources to proper use for the benefit of their constituents.