Region: Poles pushing shale gas

Despite large deposits of shale gas found in parts of Central Europe, especially Poland, energy industry analysts maintain that a full-scale shale-gas revolution like the one seen in the United States is unlikely.

"Domestic shale-gas extraction will not be a game-changer in the EU as it was in the U.S. The context is completely different," said Roderick Kefferputz of the Centre for European Policy Studies, a Brussels-based think-tank.

A report released in April by the U.S. Energy Information Agency estimated Europe had 624 trillion cubic feet (TCF) of recoverable gas under its surface compared with the United States' 862 TCF.

According to the report, Poland could have 187 TCF of recoverable shale gas, a huge amount for a country that has traditionally relied heavily on Russia for its natural gas imports.

"Exploration of our own resources is our chance and our obligation. It is a chance to limit Poland's and Europe's dependence on imports," Polish Foreign Minister Radosław Sikorski said May 18 at a conference of experts on shale gas in Warsaw.

Across the Atlantic, the recent boom in shale gas has transformed the energy landscape.

In 2000, shale gas accounted for just 1 percent of the United States' natural supplies. Today, it represents 25 percent and could rise to 50 percent in the next two decades. The resulting effects have seen the country move from being a net importer of gas to being largely self-sufficient, and talk is rife of the United States even becoming a gas exporter in upcoming years.

But the shale-gas industry is increasingly coming under attack for its technique of extraction known as "hydraulic fracturing" or "fracking," a process by which sand and chemical compounds are injected into a well bore under high pressure to force the release of gas from the rock formations. Environmentalists warn this pollutes groundwater. A controversial scene from the Academy Award-nominated documentary Gasland shows water from a faucet igniting in an area where natural gas from fracking purportedly tainted the water supply.

Many in the industry including Tomasz Chmal, an energy expert at the law firm White & Case LLP, have heavily denounced these criticisms, as well as the documentary for factual inaccuracies. Chmal said he does not foresee environmental factors stopping shale-gas production in Poland, where the political will to pursue the development of shale gas is strong.

"It would be very bad if the authorities made their decisions based on manipulative documents," he said. "As soon as possible, we need to educate people about it. [Shale gas] is not harmful to the environment and should be shown in that way."

Polish authorities remain resolute in developing shale gas, with Prime Minister Donald Tusk declaring in March, "Our determination is clear: Every cubic meter of gas in Poland must be used if possible."

Poland's commitment stands in contrast to the position in France, where earlier this month its lower house of Parliament passed a ban on fracking. The Senate will debate the issue in June, and if passed, France will become the first country to ban the process. France's energy mix is very different to Poland's, however. As well as possessing a strong nuclear lobby, about 40 percent of France's energy needs are met by domestically produced nuclear power.

No shale-gas revolution

Aside from the ecological challenges, other obstacles remain that raise questions about the realities of shale gas's potential in Europe, where the geology is much less favorable than the United States, making shale-gas exploitation more expensive and less competitive than conventional forms of gas.

"Europe lacks an experienced drilling force and equipment," Kefferputz said. "You can't just bring U.S. equipment over to Europe, where each member state has its own regulations and standards, meaning you have to recertify equipment whenever you move it to a different country. All of this complicates matters."

However, shale-gas advocates say American technologies could make a smooth transition into Poland.

"The technology is proven in the U.S. I can't see any reason why it could not be transferred to here," Chmal said.

Forty-four export licenses have already been granted for Polish shale gas, and several of the world's largest energy companies like Exxon Mobil and Chevron have secured rights to drill.

In Europe, unlike in the United States, shale gas is state property; its benefits accrue to the governments, not the landowners.

"In America, there is a financial incentive because the property is of the private landowner not the state," said Paul Stevens of the London-based think-tank Chatham House while speaking at a shale-gas conference in Budapest earlier this month. "In Europe, it depends on altruistic motives from citizens, as they reap no financial reward."

Cillian O'Donoghue can be reached at
codonoghue@praguepost.com