New Europe: Shale gas production in Europe on the road to 2050

On Tuesday 24 April, MEPs in the Industry Research and Energy Committee of the European Parliament will launch the debate on the industrial and energy aspects of shale gas. There have been various estimates regarding the existence of shale gas resources in Europe, while it has also become apparent that public attitudes to shale gas developments differ from one Member State to the other. On the one hand, countries such as Poland view shale gas as an opportunity for more energy diversity, as well as energy security - especially in terms of reducing dependency on third country gas imports.  On the other hand, we have the more environmentally conscious view that if we continue to burn fossil fuels at the same rate, then the EU will never achieve its goal for reducing green house gas emissions by 80-95% by 2050.

The European Union, by enlarge, currently finds itself caught in the middle of a fascinating geopolitical energy equation. From across the Atlantic, the shale gas boom in the USA has proved to have had a significant impact on the dynamics of the natural gas market and on prices. Within the next 20 years, it is estimated that natural gas will represent around 50% of the USA's energy mix - giving the US the potential, from mass importer, to become a mass exporter of natural gas. Furthermore, the shale gas revolution in the US has caused liquefied natural gas (LNG) that was intended for the US market to be redirected. Elsewhere, to Europe's east: China has already made agreements with companies and is busy auctioning exploration rights; while between the EU and China, Russia is intently watching the developments. We might not have a global market for gas, but more and more we are beginning to see the emergence of various regional gas market clusters, and Russia recognises that if shale gas takes off in Europe and other regions, it will affect competition and force Russian companies to rethink their own pricing strategies.  MORE