WSJ: Europe Targets Its Shale, but Hurdles Limit Investor Allure

Europe is hoping to repeat the shale-oil-and-gas bonanza that has transformed the American market, but investors expecting easy money have reasons to be cautious.

The potential rewards are tantalizing. Investors who bought shares in U.S. shale-oil producer Continental Resources Inc. in 2009 have more than tripled their money. Backers of XTO Energy, another shale-gas producer, received a 25% premium when ExxonMobil Corp., acquired the company in a stock deal valued at about $30 billion in 2010.

For Europe, the reality is that many hurdles remain: Companies are exposed to ever-changing regulations; there are widespread public fears about the safety of shale; production costs are high; and there is a far-from-plentiful supply of equipment like drilling rigs.  MORE