Thursday, 10 February 2011

Shale gas will end Europe´s dependence on Russian energy

Shale gas will revolutionise the global energy market. In Europe it means that countries like Ukraine and Poland will free themself from the dependence on Russian gas and oil. It also will make such projects as the Russian-German Nordstream much less interesting. This is why the Russians are trying to belittle the importance of the coming energy revolution. But there is little Putin and his henchmen can do to prevent a new and better energy future for a great number of countries.

Dallas Parker´s article "Shale Gas: Global game changer" in PennEnergy should be obligatory reading for decisions makers.

Here is an excerpt:

The distribution of shale gas is so widespread that locally produced shale gas may become the standard fuel in many places. Traditional gas imports (by pipeline or as LNG) may become incremental sources.

The potential of shale gas implies a loss of political leverage for some sellers. For example, Russia has used threats of interruptions – and actual interruptions – like old-time gunboats, notably with Ukraine, but with other European countries too.

I recently attended a conference on shale gas in Poland on behalf of Mayer, Brown. The Poles share with other Europeans concerns about fracking, water recycling, and environmental issues. They have no tradition of American-style entrepreneurship. What they do have is reliance on Russia’s Gazprom in a power-constrained economy. They want to accelerate the development of their shale gas reserves. This story is repeated many places

Read the entire

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