IEA Pessimistic on European Shale

The Internation Energy Agency (IEA) has today poured cold water on the hopes of unconventional gas producers in Europe, particularly in the shale gas arena.

Poland would have a great influence on the rest of Europe, it said, with the success or failure of its shale gas activities felt across the continent. With Poland's intensifying and organised focus on shale, the fate of the rest of the European unconvenional market rested on its shoulders.

"Poland remains the European showcase that could ultimately reverse the trend, if significant resources are developed in an environmentally sound manner and trigger some positive changes for Poland’s economy," Bloomberg reports the IEA as saying.

"Should the Polish example not bring positive results, this could deter unconventional gas developments in Europe for many years."

Production of unconventional gases continues to be problematic for the whole of Europe, the IEA said, with stricter regulations, environmental concerns and negative opinions of shale impacting upon the development of these gases.

The agency also saw growth for gas demand in the United States and Asia but said that Europe's gas demand would remain below 2010's levels. Higher gas prices in Europe than in Asia or the United States, which vary dramatically, continue to have an effect on gas demand here.