Exploration • Drilling • Field Services
Wading through the geographic and political mire and trying to make sense of the current situation in Europe without scaremongering, is Marcus Pepperell from Shale Gas Europe, a platform run by FTI Consulting for all players in the European market. Pepperell is cautiously optimistic that things are not as bleak as Helge Lund and others may think. “Te European Commission estimates that Europe could see the start of commercial drilling as early as 2015 in member states where trials are most advanced. Exact reserves are unknown and further exploration needs to take place. However, current activity is well ahead in the UK, Poland and Romania. In many other parts of Europe, such as the Netherlands and Denmark, the authorities are undertaking extensive studies to estimate shale gas potential.” Indeed, the UK and Poland have gone so far as to join forces in this arena, declaring themselves ‘natural allies’ and agreeing to produce joint research to detail how “the potential of shale gas can be realised.” Pepperell is all in favour of such
research projects. “Until we know the size of any reserves and whether they are commercially viable, we will not be able to determine what this potential will be,” he says matter-of-factly. Yet Pepperell does believe there is a compelling business case evident already. He explains: “Industry is an important part of the European economy but
“We are only able to consider shale gas as a commercially viable energy source because of important advances in modern technology…”
Marcus Pepperell, Shale Gas Europe
Europe has higher energy prices than in other parts of the world. Te recent Commission study on energy costs shows that European gas prices are much higher than in Latin America or continental Asia and more than three times higher than in the USA. Tis has an impact on the competitiveness of European industry, especially for high-intensive energy industries such as the chemical, paper or metal sectors. It means European business is at a disadvantage when competing in the global market. “In Germany, for example, the phasing out of nuclear energy and support for renewables, energy taxation and carbon licenses, has led to much higher energy costs than elsewhere in Europe. Other member states, such as Poland and Bulgaria, are very dependent on a single external energy supplier that imposes high costs. Industry in these countries is therefore at a disadvantage. Te development of new potential domestic energy sources, for example shale gas in the UK, is also dependent on the creation of a reliable regulatory and enforcement process to achieve policy support.”
Political clout And it’s the politicians that could prove key to improving the situation with regard to energy costs. Pepperell and his colleagues at Shale Gas Europe recently issued a press release calling for political leaders to step up and address
UK’s biggest shale gas explorer created I
n May 2014 IGas acquired its rival Dart Energy to create the UK’s largest shale gas explorer. Te deal was worth almost £120m and the combined portfolio covers 1 million acres of potential fracking land. Commenting on the deal, Andrew Austin, IGas’s
chief executive said: “Te transaction further strengthens our position financially and operationally, and also significantly increases our licensed acreage as we seek to unlock the untapped energy resource that exists in Britain.” John McGoldrick from Dart said he thought the deal would enable Dart shareholders “to participate in the long-term value creation potential of the UK shale industry, which we consider will be one of the defining energy market stories of this century”.
24
www.engineerlive.com
Both players are going into the venture with their eyes wide open – and one of them at least is well versed in the controversy surrounding shale gas exploration in the UK. IGas was at the centre of protests at its Barton Moss drilling site near Manchester. Such experience ought to stand the new venture in good stead as the political issues surrounding shale are not going anywhere fast. IGas produces around 3,000 barrels of oil and gas a
day from 110 sites in the UK while Dart holds licences to produce gas from coal seams in Scotland. Te new business will also harness the power of two
joint venture partners in Total and GDF of France. Te overall venture will be far larger than Cuadrilla Resources, which has been the most well known name in the UK market thus far. l
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100