Shell Boss Urges Europe to Embrace Shale

Chairman of supermajor Shell Jorma Ollila has told a Finnish newspaper that Europe must urgently embrace shale gas in order to maintain its competitive edge.

Speaking to Tekniikka & Talous, Mr. Ollila said that the U.S. was beginning to outstrip Europe in the shale gas boom due to strict regulations of the unconventional gas in Europe.

"Europe must change its energy policy more competitive." 

The executive pointed to the benefits of increased shale in the United States, saying that the fuel helped to bring down the costs of essential power to businesses.

"The United States has a competitive advantage, due to shale gas, because gas is cheap there," he told the paper. "It (shale gas) leads to cheap electricity, for example, in the chemical and steel industries and leads to a fall in production costs."

Shell has already begun to explore for shale gas in Europe,winning a tender to explore at the Yuzivska field in Ukraine in January this year. The company could make up to a $10 billion investment into exploration at the field, the Ukrainian government said. Ukraine is estimated to have the third highest reserves of shale in Europe, with an estimated 42 trillion cubic feet.

Earlier this month, Country Manager for Shell Ukraine Graham Tiley said that his company had already proven its capabilities to safely explore for shale gas in China and North America.

"These countries can help showcase benefits that such projects bring," he said. "In the U.S. alone the unconventional gas industry provides jobs for more than a million people."