ČR among the latest to explore shale gas

The controversial process of extracting natural gas from shale rock may soon be headed for the Czech Republic as exploration efforts across Europe continue. Hydraulic fracturing, or fracking, has already made its mark on the U.S. energy industry, where shale gas has grown to account for 25 percent of natural gas supplies in just a decade.

Researchers say there is likely enough shale gas in Europe to help meet EU carbon emissions goals, as well as to alleviate geopolitical pressure associated with gas imports from the outside. But whether shale gas actually becomes a game changer in the European energy market is a complicated question tangled in politics and finances, not to mention emerging reports from the United States that question the health and environmental impacts of the fracking process.

The Czech Republic is starting its own exploration for shale-gas reserves on the heels of reports that supplies in Poland could be as much as 5.3 trillion cubic meters (tcm) of shale gas, and total unconventional gas supplies make up about 4.6 percent of the world supply. The Environment Ministry has said it plans to commission a survey to determine shale-gas levels, and British companies Cuadrilla and Basgas have submitted applications to start researching supplies in the coming months.

Cuadrilla has acquired a 946 square kilometer tract near Olomouc, according to the Environment Ministry, based on data that "suggests the shale characteristics of the Czech Republic are analogous to those of other basins in Europe which are being actively explored," said Charlene McAuley, a junior account executive at Cuadrilla.

Basgas has applied to explore a 93 square kilometer area between Prague and Beroun, and a 777.54 square kilometer tract in the Trutnov slate formation in north Bohemia based on the discovery of shale that shares characteristics with "successful plays in North America," said Anna Maio, corporate communications manager at Basgas.

"The rule of thumb is: Where you find coal, you will find unconventional gas sources," said Maximilian Kuhn, a research associate at the European Centre for Energy and Resource Security (EUCERS) at King's College London, who along with colleague Frank Umbach wrote a study on the potential for unconventional gas supplies in Europe.

The Environment Ministry emphasized licenses were only for research and that drilling based on any discoveries would not begin for at least another five years.

EU shale-gas supplies are estimated to be around 15 tcm, in comparison with total EU conventional gas reserves of 2.42 tcm - enough to cover European gas needs for around 60 years, according to the EUCERS report. Developing that could have significantly affect Europe's energy future, especially as gas is eyed as a bridge to fill gaps in renewable energy supply. Shale-gas supplies could also allow countries to become more self-sufficient and reduce reliance on major gas exporters like Russia.

"It doesn't necessarily mean you have to develop all of it, but you can know what resources you have and assess the price, so if it's lower than the imported price tag, you can leverage," Kuhn said.

Despite the purported advantages of shale-gas development, critics remain skeptical that it will play a significant role in European energy supply anytime soon.

One of the greatest barriers is the possible detrimental impact many say fracking has on the environment. Fracking involves injecting water with chemicals into the shale to break the rock, raising concerns about water shortages as well as surface water contamination.

"I don't see it happening in my country, nor in Germany or France," said Czech Ambassador for Energy Security Václav Bartuška. "There is an awareness in this country about mining through chemical means."

From 1967 to 1985, uranium mines in north Bohemia had used a sulphuric acid solution to obtain uranium oxides from the ground, which contaminated groundwater sources.

"Whatever you say about the protection of groundwater, I have my doubts," Bartuška said. "I'm just used to the simple paradigm that if things can go wrong, they will go wrong."

Gas companies counter that there is no solid evidence fracking harms the environment, and any risks can be mitigated by proper well design and technology.

There are, however, significant economic limits. The costs of producing shale gas in Europe are several multitudes higher than in the United States, the EUCERS report said, because of the lack of technology, higher labor prices, stricter environmental standards and basic differences in the rock strata that put unconventional gas generally deeper in the Earth, below groundwater supplies.

Landowners also have little incentive to cooperate with shale-gas production, a factor that has been important in the U.S. development. Unlike those in the United States, European landowners don't have a right to what lies beneath the subsoil, which could lead to a "not in my backyard" problem, the EUCERS report said.

It's also a soft gas market. Presently, there is a gas glut caused by the economic recession, expansion of renewable resources, higher unconventional gas production elsewhere and greater abilities to deliver liquefied natural gas. That glut is expected to last through at least 2015, perhaps 2020.

Even with all the unknowns, land grabbing for exploration will likely continue.

"If big companies don't look into unconventional gas, they could miss out," Kuhn said. "It's more about securing your share of the market, despite maybe doing so with some uncertainty."

Cat Contiguglia can be reached at
ccontiguglia@praguepost.com