Europe moves closer to shale 

Two major events on 13 February 2015, brought Europe a step closer towards developing a domestic shale gas industry.

The UK Infrastructure Bill gained Royal Assent.  It is designed to simplify procedures for the onshore oil, gas and deep geothermal industries to access reserves 300 metres or more underground. Further legislation will follow in July to provide more clarity on some of the specific amendments introduced covering hydraulic fracturing, specifically exploration in National Parks and water protection zones.

In Berlin, the Federal Environment and Economy Ministries hosted a public hearing into its proposed draft law which seeks to regulate exploration of unconventional resources. It heard evidence supporting the need to ensure that exploration is conducted within an environmentally sustainable framework. Equally clear was the need for a pragmatic approach to the Government’s energy policy to provide security of supply and drive competitiveness. The finalised draft will be submitted for debate in the Bundestag.

The UK and Germany face critical energy challenges with increasing dependence on foreign imports and both governments need alternative sources of domestic production. In the UK renewables can only provide part of the solution and production from the North Sea continues to decline. Total energy production was 6.6% lower in 2013, raising the UK’s import dependency to 47%.   Germany also experienced a significant rise in imports (63% in 2013) with energy dependency at its highest in 20 years, 10% higher than the EU average. In Germany 70% of citizens supported the idea of exploring and assessing unconventional resources in a recent survey conducted by Forsa. 79% are also aware that natural gas and oil will be required to ensure a safe and affordable energy supply for the foreseeable future.

Marcus Pepperell, spokesperson for Shale Gas Europe said: “While we wait to see the outcome of the legislative process in Germany, the UK has taken a decisive step in embracing the shale gas opportunity. There still needs to be a significant increase in the exploration process to understand its potential but for those looking for a pragmatic approach to Europe’s future energy mix, this week has seen reason overcome rhetoric. We may now start to see the emergence of Europe’s first commercial shale gas industry.”