330 Wirtschaft
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Denmark and Sweden take two-fold positions on the question whether shale gas should be developed. At first sight, it appears the governments are supportive by licencing exploration to domestic and foreign companies. However, Denmark has suspended issuance of new licenses as doubts of extraction activities have risen. Sweden was forced to give landowners and municipalities a say in decision-making, and there is a larger context of mining minerals policy controversy. Even though both countries only have exploration activities at the moment, and the economic promise is yet unclear, public awareness and attention are increasing and cause difficulties for governments and industry to proceed without open discussions and debates. Scandinavia’s green image is at stake as the new fossil fuel opportunities are in conflict with the ambitious goals for renewable energy development. Both countries now have to prioritise energy self-sufficiency and industrial economics versus ecological consciousness.
This article focuses on the oil and gas supermajor, ExxonMobil, and its business in the unconventional gas field in Europe. The purpose was to investigate whether and how ExxonMobil runs its natural gas operations differently among European countries and possible reasons for divergent strategies. After a brief introduction of the firm, ExxonMobil’s approach in Europe in general will be discussed. Two countries are in focus: Poland and Germany. The key finding is that the firm indeed has shown different approaches and strategies. In Poland, ExxonMobil faced a supportive, positive environment but quit quickly when its small investment resulted only in disappointing results. The firm, however, was a newcomer which had not much to lose. In contrast, its German unconventional gas operations are connected to broad conventional activities and are being defended by an extensive effort to win back public support.
Ever since the impacts of the shale gas revolution in the US have unfolded their measurable effects – as significantly declining natural gas prices – impressive euphoria among those states which are identified to bear high potentials of unconventional gas is widely spread. As for Poland, essentially linked to the hope of profitably producing shale gas is the political will to strive for independence from Russian energy supply and thus, enhance energy supply security. Hence, liberalizing its gas market shall effectively contribute to foster economic developments in the field of unconventional gas exploration and production. Moreover, attempts are made to encourage particularly foreign investors – for the reason of expertise – to enter the Polish gas market by amending and expanding legislation in favour of this development. Legislation efforts, however, intend to preserve comprehensive governmental control capabilities. In addition, arising environmental concerns are being tried to handle either by campaigns of clarification or political blockade to any legislation that potentially threatens the progress on unconventional gas in Poland. Poland not only faces crucial challenges in terms of diminished estimates on profitably recoverable shale gas volumes but rather in terms of an escalating atmosphere of uncertainty for investors – regarding the much criticised new legislation as well as an upcoming diminution of societal support.
The United Kingdom is considered to be shale gas rich with substantial volumes distributed both onshore and offshore. Recent technological development has made shale gas
exploration commercially viable. The UK’s shale gas industry is at an early stage, with a few companies actively operating in this area and merely a few specific regulations exist for it. Many questions are waiting to be answered, many barriers must be overcome. This article analyses the UK’s current state of play for shale gas. First, background information and a brief description of shale gas hydraulic fracturing is given. Government and business points of view will be illustrated and analysed before offering an outlook.