Tuesday, March 2, 2010

European Shale All Over the Place!

I have lost track of all the sudden media coverage of European shale gas.  With the well publicized success of the Haynesville and Marcellus Shales, among others, everyone is looking for the Next Big Thing.  That Big Thing these days seems to be European shale gas.  It makes for a great story full of international intrigue and geopolitical implications. 

There is a new blog on European natural gas that features article reprints on the subject.  A reader pointed out an article on shale possibilities in PolandRussia won't be left out of the bonanza by way of its partnership with BP (and BP's partnership with Chesapeake Energy).  Canadian company Realm Energy says it has its fingers in pies all over Europe.  It goes on and on.

The common thread is that most of the companies "looking hard" at European shale gas are the big majors.  It makes sense.  It really helps to be a big company like Exxon or Chevron to negotiate big concessions with foreign nations.  Additionally, the majors are pretty red-faced that they missed the U.S. shale bonanza.  Say what you will about the economics of U.S. shale gas, but there's no better place in the world to do business in the energy industry.  And look at the huge reserve numbers that some not so big companies are putting up.  It's pretty expensive to buy into the big U.S. shale plays right now, so for the big boys want to achieve the same kind of success they will have to look far and wide.  Godspeed Big Kahunas.

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