Hill+Knowlton Strategies

As with a number of other issues, the Europeans can’t decide what to do about the shale gas.

The perspective of a shale gas revolution similar to the US one, further transforming the global energy scene and ensuring greater energy security, is tempting. But is it really possible in Europe, ask many, given different geological conditions, environmental challenges and the lack of European know-how?

Some European countries tempted by the promise of wealth, and even more importantly of security of supply, have already taken action. The UK Department for Energy and Climate Change has just launched an inquiry into the future of shale gas in the UK. Poland whose reserves of shale and tight gas may be as much as 3 trillion cubic metres, potentially turning the country into a net exporter of gas, has already started exploratory drilling mostly with American partners.

At the same time the big European players such as Statoil, Total and ENI are thinking of ways of getting the know-how and bringing it to Europe. This is, however, costly. Gazprom, previously reluctant to admit that shale gas could be an option, is also trying to acquire the necessary knowledge.

The idea, received with a dose of scepticism at the European level, is slowly gaining supporters who think it is worth taking the risk and investing.

In his recent interview for a Polish newspaper Günther Oettinger, EU Commissioner for energy, one of whose goals is to ensure energy security, did not reject the idea that shale gas could be a part of this plan. Recently, five members of the European Parliament submitted a written declaration calling on the Commission to conduct an initial analysis of the possibility of extracting gas from alternative sources and to support geological research in order to estimate the potential for extracting shale gas in Europe. They would also like to see financial support for relevant programmes aimed at increasing technological development in the area. These are the first tentative attempts to put shale gas on the European agenda.

In this context we ask the question openly and invite you to start the debate – should shale gas be much higher on the European agenda and become part of strategic discussions about European energy security and self-reliance?  Should such political engagement then be translated into concrete support measures for the development of European shale gas technology, just as the European Commission decided, for strategic reasons, to support such innovative technologies as Carbon Capture and Storage (CCS)?

Our view is that we should learn from our American partners, but there is no reason why the Europeans should not develop their own know-how in this regard, which is costly and would require public support. It seems that only then the truly European “shale gas dream” will have a chance to materialise.

This post was written by Malgorzata Figwer, Consultant, Hill & Knowlton Brussels