PESTLE analysis of the Shale Gas industry in Europe

Full text: https://firmstrategy.net/risk-assessment-for-the-shale-gas-industry-in-europe/
The success of shale gas in the US has prompted companies to examine the possibilities of replicating the shale gas production and market in Europe. There are significant shale gas reserves in Europe, with technically recoverable shale gas resources estimated at approximately 18 trillion cubic metres (m3) (EIA, 2011). However, exploitation of shale gas to date has been limited and there is no commercial production at present (AEA, 2012a). This is because there are unique challenges for companies seeking to invest in shale gas development in Europe (Boersma and Johnson, 2012). The geology is less favourable to shale exploration. There is greater population density in much of Europe compared to the US. Moreover, legal issues, fiscal realities, land use particularities, cultural approaches, environmental and energy priorities, and the lack of an experienced service industry for unconventional drilling add to the challenges (Steven, 2010). Further adding to the mix is the considerable environmental skepticism and opposition across Europe regarding shale gas drilling – and this opposition was further influenced by the widespread European viewership of the documentary film “Gasland.” (Rham, 2011). Key questions remain unanswered, for we do not yet know with any degree of clarity what shale gas will cost to produce nor have commercially viable amounts of shale gas been extracted in Europe.

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