follow us like us subscribe contact us
Adbar

Let the Fracking Begin in Europe - Very Cautiously

By Editorial Dept | Fri, 23 November 2012 18:05 | 1

The European Parliament has rejected a proposal to ban new hydraulic fracturing operations on European Union territory, but while opportunities abound, they won’t be revolutionary just yet.

Europe’s decision was necessary. There was simply too much at stake: Russia’s grip on the market has gotten too strong; EU natural gas production is on the decline; and consumers have not benefited from the US natural gas boom.

Worse, if Europe does not embrace its shale potential, expensive energy could eventually drive energy-intensive industries elsewhere (like the US) and this would spell Europe’s economic doom. Industries in Europe pay on average three times the price for gas as their US counterparts.

While Europe has serious environmental concerns about fracking, it will have to figure out how to address these with the appropriate regulations. The environmental resistance to fracking has led to an increase in European imports of polluting coal from the US to fill in the energy gap. In the end, the anti-fracking campaign is doing nothing for the environment—in fact, it may be harming it with the uptick in coal use.

Still, the 27 member countries of the EU can take their own decisions on how to proceed with their shale reserves—and while some are on board, others are under no small amount of political pressure to bow to environmental concerns.

There will be a number of complications for those who would like to see…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

About the author

More recent articles by Editorial Dept

Fri 11 April 2014
Don’t Panic…Buy BP Instead
Fri 11 April 2014
U.S. Will Export Oil – Who Wins and Who Loses?
Fri 11 April 2014
Global Energy Advisory - 11th April 2014
Fri 11 April 2014
The 3 Most Important Numbers in Energy – 11th April 2014
Mon 07 April 2014
The 3 Most Important Numbers in Energy