Oettinger Says Teamwork Needed to Cope with Increased Global Competition

The competitiveness of Europe depends on its ability to proceed with efficient energy policies, said Günther Oettinger, European Union Commissioner for Energy.

During the debate “Shale gas: what are the implications for Europe’s competitiveness?” organised in Brussels recently, Oettinger claimed that gas would play a major role for decades and that energy policies have a significant geopolitical dimension.

“No doubt that gas is the perfect addition to renewables. I am sure that without gas, renewables do not have any chance. No acceptance. I am sure that gas will play an increasing role,” argued Oettinger, during the conference organized by the German Marshall Fund of the United States and the Bureau of European Policy Advisers (BEPA).

The Commissioner for Energy argued in favour of indigenous shale gas exploration, as part of a European Energy Mix.

“Our own conventional gas sources will come to an end between 2030 and 2040. I think we shouldn’t import 600 billion cubic metres a year. We should diversify our strategy: new routes, new sources… Europe needs more options and shale gas can be a good option to avoid high level of dependency from Russian gas,” said Oettinger on Tuesday.

The German politician argued that synergies are required to decrease gas prices in Europe and increase competitiveness of energy intensive industries.

“It should be a connected teamwork: policy makers, energy companies, engineers and scientists together. The more we are constructive the more we will have a chance that Polish companies or UK companies will start (shale gas explorations),” concluded Oettinger.

How to streamline European procedures

The European Union has to support countries willing to explore and exploit shale gas, said Niki Tzavela, member of the European Parliament and rapporteur for ITRE Committee’s report “Industrial, energy and other aspects of shale gas and oil”.

“The green light … has to come from the Commissioner. There are member States that want to proceed, but due to the preconception about shale gas … they need a protective, flexible umbrella from the Commission that will facilitate them to legislate nationally,” said Tzavela, mentioning the EU summit last week.

In the conclusions of the European Council held on May 22nd, the commitment to make progress on energy policy emerged as the number one priority.

“The EU’s energy policy must ensure security of supply for households and companies at affordable and competitive prices and costs,” reads the final document by the General Secretariat of the Council.

The Commission expressed its intent to assess a “more systematic recourse to on-shore and off-shore indigenous sources of energy” to ensure security of supply and reduce EU’s energy dependency.

According to Tzavela, the conclusions of the summit are a brave beginning, which has to be put into practice as soon as possible. She added that Europe has to benefit from the extensive North American know-how, avoiding long test phases that would slow down the exploitation of indigenous unconventional gas.

“We do not need to test chemicals again. The Canadians and the Americans know what they use. We have the data from their research. Chemicals, water contamination and emissions – these can be answered by the Americans,” claimed Tzavela.

On the opposite side, Magda Stocziewicz, director of Friends of the Earth Europe, suggested that shale gas might be another financial bubble. A prudent approach is therefore necessary.

“Is there really an economic benefit to build the whole infrastructure to supply gas for two and a half years? Or should we look at the long term and invest in a different way?” said Stocziewicz, referring to recent reports suggesting that Polish shale gas reserves might be rather modest.

Risks or opportunities?

“We know that gas will play a key role. Shale gas is an opportunity. Of course there is a risk. Nobody has to deny this, but we have the technologies to deal with the risk,” said Markus Beyrer, director general of Business Europe.

According to Beyrer, the lack of competitiveness is related also to a lack of business bravery. Shale gas is just one example.

“We need guarantees before we do anything new. Do we seize the risks or do we also see the opportunities?” said Beyrer.

Dieter Helm, professor of Energy Policy at University of Oxford, said that Europe has to act fast and reverse the trend.

“Nobody is investing in energy-intensive industries at all… Our carbon consumption has been going up since 1990. We have been just replacing domestic production by importing our carbon from elsewhere,” stated Helm.

“Let’s get real. The world changed around us,” said the British professor.