Andreas Goldthau

Sorting fact from fiction on Europe’s shale gas ‘bonanza’

Not all EU countries are giving a green light for shale gas exploration and ‘fracking’. In my recent piece for Europe’s World, I argue that Europeans need to get three things right before moving ahead: A clear analysis of what shale gas might and might not add to their country’s energy security; a shale gas governance framework at both European and national levels; and the public debate surrounding it. Learn more.

One thought on “Sorting fact from fiction on Europe’s shale gas ‘bonanza’

  1. Raquel

    Amy Myers Jaffe, director of Baker Institute Energy Forum, a pocliy think tank at Rice University in Houston. “They are saying to themselves: I am going to produce the gas regardless of what the price is, because I’m making money on the oil and liquids.” — With petroleum selling for $90 a barrel, drillers in places like the Eagle Ford shale or the Bakken can give away their natural gas for nothing and still make 100% annual returns on their drilling dollars. — Technology development and application are and will remain key elements in maximizing the full value of these large, long-life resources. Here are some examples: Unconventional production from Haynesville increased four-fold in 2010, while production in Fayetteville doubled in 2010. The Barnett Shale, where we currently have gross production of approximately 900 million cubic feet per day of gas, is another good example of value creation through technology. We have been able to maximize long-term ultimate recovery with longer lateral lengths and improved drilling and completion efficiency. And our net unit development cost in this shale play is about $1 per thousand cubic feet equivalent, a 50 percent improvement in the last five years …” — And technology continues to lower the costs of production:The growing use of movable sleeves, a tubelike device with holes that fits inside a well bore, lets drillers target multiple spots to dislodge entrapped oil. This technique can reduce the $2.5 million startup cost of a fracking well near the Canadian border by up to two-thirds, according to a recent analysis by JPMorgan Chase. —

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