'Jury Still Out' on European Shale

Natural gas from shale in Europe is an attractive option for energy, though "the jury is still out" on its potential, according to European Commissioner for Environment Janez Potočnik.

Potočnik said domestic natural gas production among member states is in decline. "We need to dig more or deeper to get the same amount of energy," he was quoted by newsagencies. He was speaking at the European Economic Congress in Poland.

Gas from shale reserves seem to provide an attractive substitute for carbon-intensive fuels like coal, he said. Prices have come down for natural gas, however, and markets could see that trend continue if the United States starts to export natural gas from shale on a large scale.

Potočnik said, however, that it's more expensive to extract shale in Europe and the environmental laws are different to those in the US. He said he, personally, was neutral on the utilitization of shale gas.

"The jury is still out as there are large uncertainties about recoverable volumes in the EU," he said. "But most analysts recognize that, even in the most optimistic case, European shale gas development can only compensate for the decline in conventional gas production."

Poland, Ukraine and Lithuania are among central and eastern European countries considering shale exploration. However the recent departure of international exploration companies from Poland has raised questions about the feasibility of previously trumpeted reserves of shale there.

Read Janez Potočnik's speech from the European Economic Congress here

Related Reading: EU Shale Gas Legislation: An Interview with Joe Hennon, Spokesperson for Environment