Will unconventional gas become conventional?

For more information, transcripts and to join the discussion, visit:http://www.commentvisions.com/2010/05/20/event/will-unconventional-gas-bec­ome-conventional/

Recent developments in the gas sector in the US have the potential to change radically the energy situation in Europe. New technology has made unconventional gas resources available at competitive cost.
In North America, this sudden expansion of available gas has contributed to keeping gas prices low, despite ever rising demand. It has also helped the US to pursue its strategic objective of reducing its dependence on gas imports. Furthermore, the boom in unconventional gas in the US has changed the dynamics of markets for liquefied natural gas (LNG), with some supplies originally intended for the US being diverted to other markets including some in Europe.
As some European regions, particularly in Northern Europe, have similar geological structures to ones where unconventional gas has been found in North America, there are hopes that unconventional gas could offer the European Union a huge increase in domestic supplies. Energy companies have been rushing to explore the possibilities in these regions, leading to talk of a new 'gas rush'.
For countries such as Poland, which are heavily dependent on Russian gas imports and rely on coal for most of their domestic energy production, unconventional gas could open a new chapter in energy policy. It would make domestic energy supply more secure, and reduce CO2 emissions since burning gas emits significantly less CO2 than burning coal.
A boom in unconventional gas would also have considerable implications for the EU's energy policy. Abundant gas supplies -- through increased domestic production or cheaper LNG imports -- would make it easier to reach CO2 reduction targets and to electrify transport. It could also lower incentives to invest in some costly infrastructure projects, and make some technologies less attractive.
Sceptics warn of exaggerated enthusiasm, stressing that in a more densely populated continent than the US, public acceptance of projects that are likely to have heavy environmental consequences cannot be taken for granted. Unconventional gas extracted from European territory is not expected to come to market for at least a decade.
This event looked at the potential of unconventional gas to transform the European energy supply situation. It addressed the technological and economic challenges unconventional gas faces as well as the questions of public acceptance.

Category:

News & Politics

Tags:

• Unconventional Gas
• Natural Gas
• Energy
• Environment