Michael Schuetz
Policy Officer Indigenous Fossil Fuels
Unconventional Gas and EU
Energy Policy
Brussels, 14th April 2011
Disclaimer: This presentation is a working-level input on unconventional gas and not an official position of the European Commission. Should you wish to obtain a political statement or for media related purposes please contact the Commission's press service or the Commissioner's spokesperson.
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Gas in EU Energy Mix
Source: Eurostat
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100
80
60
40
20
GASOIL
2005 2008 2020 2030 2005 2008 2020 2030in %
82,4%
84,3%
92,7%
94,1%
57,7%
62,3%
75,9%
82,8%
EU-27 Import Dependency
(based on 2009 baseline scenario)
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The January 2009 Gas Crisis and its Impact (6-20 January 2009)
> 75 %
50 - 75 %
25 – 50 %
< 25%
0%
Ukraine
% of missing gas supply – 300 mcm/d for 14 days
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.Initial Commission assessment:
Unconventional gas could strengthen domestic production and contribute to security of supply
EU will still have to import most of its gas
.Further presentation:
» Commission energy policy priorities and their relation to unconventional gas
» European Union legal framework for unconventional gas projects
» Specific activities of the Commission on unconventional gas
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Commission Energy Policy Priorities
. Focus on implementing agreed policies (internal energy market, security of gas supply, energy efficiency, Renewables Directive)
.Energy Strategy 2011 – 2020
.Energy Infrastructure Package
.Energy Efficiency Action Plan
.Communication on External Energy Relations
.Energy Roadmap 2050
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Third Internal Market Package
.Non-discriminatory access to networks is an essential condition to allow fair competition between suppliers
» Regulation on conditions for access to the natural gas transmission networks (Gas Regulation)
» Regulation establishing an Agency for the Cooperation of Energy Regulators (ACER Regulation)
» Directive concerning common rules for the internal market in natural gas (Gas Directive)
.Regulations took direct effect on 3 March 2011
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Energy Infrastructure Package
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. November 2010: Communication on
Energy infrastructure priorities for 2020 and beyond
Challenges faced in each sector (electricity, gas, oil, CCS)
Strategic planning and proposal for set of tools
. 2011: Legislative proposal to create a facilitating environment for private and public investments in energy infrastructure
Unconventional Gas and EU Energy Policy, Michael Schuetz, 14/04/2011
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European Infrastructures PrioritiesGas and Oil 2020
Southerngas corridor
Baltic energy market inter-connection plan
South-North gas interconnections in Western Europe
North southgas & oil interconnectionsin Central & South East Europe
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Energy Roadmap 2050
. Support transition to low-carbon energy system in 2050
. Focus on energy security, competitiveness as well as decarbonisation, throughout transition
. Identify European-wide perspective
. Support from scenario analyses – but scenarios cannot be read as policy options
» Low Carbon Economy Roadmap came first (8 March)
» Conclusions on energy policy challenges will be in Energy Roadmap 2050
» Public consultation until 7 March
» Informal Energy Council 2-3 May
» Adoption planned for end of 2011
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Principles of EU Policy and Legislation
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. Member States have right to determine exploitation of energy resources and energy mix (Art. 194 TFEU)
. Member States are free to set more stringent environmental protection measures than required by EU-legislation (Art.193 TFEU)
. Subsidiarity
. EU-Directives transposed and implemented by Member State.
. Often EU-Directives set objectives, but means are up to the Member States
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Legal Framework on EU Level
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. Existing legislation covers all hydrocarbon exploration and production (conventional and unconventional)
» Hydrocarbon Directive
» Water Framework Directive, Groundwater Directive
» Environmental Impact Assessment
» REACH (Chemicals)
» Natura 2000
» Other (waste, noise…)
Within this framework Member States have to ensure appropriate licensing and permitting regimes
Unconventional Gas and EU Energy Policy, Michael Schuetz, 14/04/2011
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Assessing the Potential
. “In order to further enhance its security of supply, Europe’s
potential for sustainable extraction and use of conventional
and unconventional (shale gas and oil shale) fossil fuel
resources should be assessed.”
[European Council 4. Feb. 2011]
. Economically recoverable potential ?
» Following ongoing projects
» Explorations in EU just started
. JRC literature study focusing on economic impact
» Review of the evidence
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Assessing Environmental Impact
. Exchange with US
» Agreed at EU US Energy Council Nov. 2010
» US only country with extensive experience
» First activity: conference on 14 March 2011http://www.acus.org/event/european-unconventional-gas-developments
. Legal Study
» Evaluate appropriateness of EU legal framework
• Including environment issues
» Based on cases in selected Member States
» Possible good practices
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Conclusions
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. Best use of indigenous (fossil) fuels important
Economically viable potential unclear
. Other security of supply policies remain necessary
. Environmental concerns: credible answers needed
. EU has legal framework in place
Member States have to ensure appropriate licensing and permitting regimes
. Important: Innovative companies
EU Commission works on further improving gas market conditions and gas infrastructure
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