• 5 minutes Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 9 minutes Sell out now or hold on?
  • 16 minutes Oil prices going down
  • 22 mins Oil prices going down
  • 11 hours When will oil demand start declining due to EVs?
  • 13 mins Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours Sabotage at Tesla
  • 11 hours Oil and Trade War
  • 10 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 11 hours venezuala oil crisis
  • 13 hours Russia and Saudi Arabia to have a chat on oil during FIFA World Cup - report
  • 15 hours Malaysia's Petronas vs. Sarawak Court Case - Will It End Up In London Courts?
  • 13 hours Sell out now or hold on?
  • 11 hours Germany Orders Daimler to Recall 774,000 Diesel Cars in Europe
  • 8 hours What If Canada Had Wind and Not Oilsands?
  • 15 hours Correlation Between Oil Sweet Spots and Real Estate Hot Spots
  • 7 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 21 hours Trump Renews Attack On OPEC Ahead Of Group's Production Meeting
  • 9 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
The Fed Is Driving Down Oil Prices

The Fed Is Driving Down Oil Prices

The hawkish U.S. Federal Reserve…

Europe Must Forget Fantasies about Repeating the US Shale Boom

Robin Meige, the director of strategy at the European Commission’s DG Environment, put a bit of a downer on Europe’s plan to use hydraulic fracturing to experience a shale boom and drive gas prices down, when he explained that conditions in Europe were a little different.

Europe’s energy prices are double those in the US, and leaders are turning to unconventional sources of fossil fuel as a means to increase supply to the market, and hopefully force prices down.

Geological and geographical differences in Europe compared to the US, along with a higher population density, and lack of natural gas infrastructure in many places, mean that, according to the IEA, production costs for unconventional gas extraction techniques in Europe will be twice the price than in the US.

Related article: Haynesville: True Staying Power

Miege explained that the “effects of a possible future domestic shale gas production on energy prices in the EU still need to be ascertained,” and any decrease would “probably be much less than was initially foreseen.”

Shale gas supporters in the UK still firmly believe that fracking holds their energy salvation and will cause energy bills to fall, and that “significant exploitation of British shale gas across the continent could reduce our exposure to hydrocarbon price volatility on the world markets.  That could contribute to the stabilisation of British energy costs – good for homes and for businesses – at the very least,” as stated by MP Christopher Pincher.

However Miege said that “in a most optimistic case, European shale gas can only compensate for declines in domestic conventional gas, it won’t make Europe self-sufficient by itself. Further exploration would be needed to determine the level of reserves. That is met with public opposition in some countries, so we find ourselves in a catch-22 situation.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Reffracktion on June 20 2013 said:
    "the rest of the EU see shale gas as presenting a golden opportunity " - evidence please.

    "creasingly desperate green case"

    Dream on Nick. But tell us - why do you insist on polarising this debate in such a childish way. The economic argument that suggests shale gas to be an unsustainable business has nothing to do with "green" issues. Can you not see that?
  • Nick Grealy on June 18 2013 said:
    The headline states as immutable fact what is actually only Miege's opinion. The rest of the EU: Economy, Climate, Industry and most importantly of all DG Energy and the Council of Ministers themselves, see shale gas as presenting a golden opportunity and are pressing member states to explore the resource.
    Only after an assessment of how much Europe has, will those on the environmental side have an opportunity to propose their views on the way forward.
    Dismissing the impact of European shale gas before we even know how much of the resource base geologists describe as broadly similar to that in the US, can be accessed, serves to reinforce the increasingly desperate green case for their own prospects - not that of the natural gas industry.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News