WSJ: Low US Natural Gas Price Means More Coal Burning in Europe - Shell

Low natural gas prices in the U.S. and weak prices for carbon permits in Europe are pushing more polluting coal into Europe where it is being burned to generate electricity, Royal Dutch Shell PLC's Upstream International Director Andy Brown said Wednesday.

The shift in energy flows comes as Europe is trying to reduce its emissions of greenhouse gases to meet climate targets and highlights how North America's shale gas boom has rewritten the global energy map, in some cases to the detriment of regional energy policy.

Before the shale gas boom, the U.S. power sector predominantly burned coal, which produces roughly twice as much emissions as gas, to generate electricity. But a surge in unconventional oil and gas production has forced U.S. gas prices down to 10-year lows this year, stimulating demand for gas across many sectors.  MORE