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Gas Shales in Europe

Shale Gas Production in Europe Will Take at Least a Decade to Make a Significant Impact

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Gas Shales in Europe

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  1. Gas Shales in Europe - Industry Development, Competitive Landscape and Market Analysis to 2020

  2. Shale Gas Production in Europe Will Take at Least a Decade to Make a Significant Impact The shale gas industry in Europe is still in its infancy. It is expected that it will take about two to five years to firmly establish the potential of shale plays in Europe and it is only after 2020 that the production will have any considerable affect on the supply of natural gas. Shale gas production in Europe is expected to reach 1.2 billion cubic feet per day (bcf/d) by 2020. However, if the results from the prospective basins are encouraging, shale gas may change the structure of the energy industry in Europe in the long term. For further details, please click or add the below link to your browser: http://www.globaldata.com/reportstore/Report.aspx?ID=Gas-Shales-in-Europe-%E2%80%93-Market-Analysis-Industry-Development-and-Competitive-Landscape-to-2020&ReportType=Industry_Report&coreindustry=Industry_Report&Title=Energy_and_Utilities Poland to Lead the Shale Gas Development in Europe Huge interest in shale gas potential in Poland has made the country a key area for shale gas exploration. Major international oil companies (IOCs) like ExxonMobil Corporation, Chevron Corporation, ConocoPhillips, Talisman Energy and Marathon Oil have accumulated significant acreages in prospective shale gas basins in the country.

  3. Many companies have started also started exploration activities to test Poland’s shale potential. Poland’s Polskie Gornictwo Naftowe i Gazownictwo SA (PGNiG) drilled the country's first shale well in April 2010. Encouraged by its results, the company started fracturing the well. Lane Energy and ConocoPhillips have also drilled two vertical wells - Łebień LE1 and Łęgowo LE1, to test the shale formation. Other companies like Talisman Energy and BNK Petroleum are also planning to drill wells in their respective concessions. The results from these exploration activities will decide the level of future activities in Poland and also across Europe. Positive results are expected to lead to an increased interest in shale gas resources across Europe. Different Challenges are Hindering Shale Gas Development in Europe There are a number of major issues that may hinder the development of shale gas in Europe. The growing environmental concerns over the development of shale gas resources will also be one of the major challenges in the development of shale gas industry in Europe. Already, the drilling by Royal Dutch Shell in southern Sweden has attracted opposition from some local residents and green activists, who are worried about the environmental impact if shale gas deposits are exploited on a large scale.

  4. The cost of exploring for shale gas in Europe is expected to be substantially higher than that in North America. Most countries in Europe lack both the small wildcat exploration firms that led shale gas exploitation in America, and the numerous competing oilfield-service firms that support them, thus driving down costs. The availability of rigs will also pose a major concern. For further details, please click or add the below link to your browser: http://www.globaldata.com/reportstore/Report.aspx?ID=Gas-Shales-in-Europe-%E2%80%93-Market-Analysis-Industry-Development-and-Competitive-Landscape-to-2020&ReportType=Industry_Report&coreindustry=Industry_Report&Title=Energy_and_Utilities Also shale gas exploitation requires drilling a number of wells. This will be harder in Europe which is much more densely populated than North America where wide-open areas are available for drilling.The huge amount of water required for hydraulic fracturing is also a major concern.

  5. The Huge Success of Shale Gas in the US has Paved the Way for Interest in Europe After significant success in North America, major oil and gas companies are now looking to extract shale gas in Europe. Shale gas development has changed the overall dynamics of the natural gas industry in the US, leading to a substantial increase in supply. The unconventional gas production in the US is expected to increase approximately from 30.4 bcf/d in 2009 to 38.6 bcf/d in 2015 at an Average Annual Growth Rate (AAGR) of 4%. A major share of this increase is expected to be from shale gas plays in the country. Shale gas production in the US is expected to increase approximately from 8.4 bcf/d in 2009 to 15.4 bcf/d in 2015 at an AAGR of 10% The way shale gas has transformed the US energy sector has motivated European nations to promote shale gas exploration. If the oil and gas companies are successful in their efforts, shale gas development could be the answer to long-standing energy security issues in Europe. Its development in Europe could help the region to diversify its sources of energy and cut down on imports.

  6. Import Dependence on Russia and Concerns Over Energy Security Will Drive Investment in Shale Gas in Europe If shale gas drilling in Europe is as successful as it is in the US, the region might achieve energy security. By coincidence, many of the most promising shale-gas deposits in Europe are in those countries that are most dependent on imports of Russian gas like Poland, Hungary and Ukraine. Russian gas accounts for approximately 25% of Europe’s gas requirements. The growing dominance of Russia in the European gas market has become one of the major concerns for Europe. The region is now looking to diversify its gas supply sources and reduce its dependence on Russian gas. Shale gas may prove to be a viable solution to the continent’s long-standing energy security issues. GlobalData’s new report, “Gas Shales in Europe - Industry Development, Competitive Landscape and Market Analysis to 2020”, provides an in-depth analysis shale gas industry in Europe. The report details the shale gas potential in Europe providing details of the key exploration areas. The report also details key companies exploring shale gas in Europe, major drivers and challenges in shale gas development and also key merger and acquisition activities in the European shale gas industry.

  7. The report discusses the development of shale gas exploration in Poland detailing concessions awarded, companies involved, drivers and challenges in development and expected economics. The report also details key development in other European countries. The report analyzes the key implications of shale gas development in Europe.. For further details, please click or add the below link to your browser: http://www.globaldata.com/reportstore/Report.aspx?ID=Gas-Shales-in-Europe-%E2%80%93-Market-Analysis-Industry-Development-and-Competitive-Landscape-to-2020&ReportType=Industry_Report&coreindustry=Industry_Report&Title=Energy_and_Utilities Visit our report store: http://www.globaldata.com For more details contact: pressreleases@globaldata.com North America: +1 646 395 5477 Europe: +44 207 753 4299 +44 1204 543 533 Asia Pacific: +91 40 6616 6782

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