Shale Gas: Legal developments in some key jurisdictions

A week cannot go by without some mention in the press of recent developments in shale gas, either in the U.S. or Europe. Shale gas has become an increasingly important source of natural gas in the US over the past decade and interest has spread to potential shale gas elsewhere in the world, including Canada, Europe and Asia.

Shale gas is facing a formidable host of enemies in the coal, nuclear, renewable and environmental industries. However, the detection and exploitation of shale gas is also described as nothing less than a revolution in the world energy industry, promising to transform not only the prospects of the gas industry but of world energy trade, geopolitics and climate policy.

A number of outstanding concerns regarding shale gas exploration and production continue to be at the forefront of the debate and several jurisdictions have taken opposing approaches to shale gas.

It would seem that until more research is undertaken into the environmental consequences of hydrofracturing, it is unlikely that opposition to this method of gas extraction will subside. Conversely, certain countries with large reserves (eg Poland, the Ukraine and Israel) may be driven to promote shale gas production to decrease their reliance on imported gas.

Although there are still considerable uncertainties, shale gas will undoubtedly prove to be a significant new force in the world energy scene, with far-reaching consequences and it will be up to the regulators and industry to ensure that the risks are assessed and managed, in order to maintain public confidence in the sector.

CMS Cameron McKenna is tracking legal developments as they relate to shale gas.  For a country by country guide to the the main legal developments relating to shale gas exploration and production, please visit: http://www.law-now.com/cmck/pdfs/nonsecured/shalegas.pdf

To learn more about CMS Cameron McKenna HERE