IEA Asks EU to Boost Shale Gas Output

The International Energy Agency (IEA) joined mounting concerns about European gas prices, suggesting Brussels to take action to minimize  backlashes on energy-intensive industries. 

"These industries are critical for the European economy as they employ over 30 million people and it could have a major knock-on effect on the EU economy," the IEA's Fatih Birol told Reuters during the World Economic Forum.

IEA's chief economist asked the EU to boost shale gas output and cut green subsidies. Birol said that unconventional hydrocarbon can help European countries to successfully renegotiate gas contracts, two-third of which will expire in the next decade. 

"In some cases it is excessive and puts an unnecessary burden on consumers," Birol said.

The International Energy Agency suggested that the price structure could push many energy-intensive companies out of Europe, which could reap benefits from a relocation in the United States.

As suggested by industry players several times, European gas prices are around three times higher than those in the United States. 

On the opposite end of the spectrum, a recent report by the EU's economic and financial affairs directorate (DG Ecfin) supported the effort to support renewable energies.

"Renewable energies help reduce fule import costs and contribute to improving the energy trade balance," reads the report released by the DG Ecfin on Wednesday.