Forbes: Why Europe Can't Replicate The US Shale Bonanza Just Yet

Every geopolitical conundrum involving Russia’s gas makes neighboring Europeans sweat harder. Once sweating, fretting and general consternation in policymaking circles is over, customary navel gazing at the US shale bonanza resumes. Each EIA update on the US importing less oil and producing more gas makes the longing for replicating something similar grow stronger.

Britain, Sweden, Poland and Ukraine are held out as possible places for a European fracking heaven. I think it is safe to say that moves in Ukraine are on hold. But going the other way, what’s afoot in the UK is anything but.

Earlier this year, the country’s Treasury put forward a new incentive for onshore prospects, wherein a portion of profit equal to 75% of a company’s qualifying onshore capital expenditure will be exempt from the supplementary tax charge. This will then be subject to tax at 30%, while the remaining profit will be subject to a marginal tax rate of 62%, as is usually the case with oil & gas companies operating in Britain. Poland has been trying real hard too, much before Britain got in on the act.
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