Presentation on theme: "Unconventional energy sources - a new European perspective?"— Presentation transcript:
1Unconventional energy sources - a new European perspective? Energy Security: How to ensure supply for the EU and its neighbours?29th April, Pécs, HungaryUnconventional energy sources - a new European perspective?Istvan GyermanUniversity of Pecs, Faculty of Business and Economy
2Unconventional energy sources – a new european perspective? Conventional vs. UnconvenctionalUnconventional gas in the USA and world shale gas resources in the worldUnconventional gas resources in EuropeUnconventional gas projects in EuropeConclusionEnergy security: How to ensure supply for the EU and its neighbours?29th April 2011.
3Conventional vs. unconventional Accumulations in medium to highly porousreservoir with sufficient permeability to allowgas to flow to producing wellPressure regime tends to move gas towardsproducing well (i.e. natural flow)UnconventionalDeposits of natural gas found in relativelyimpermeable rock formations (tight sands, shaleand coal beds)To get resources out of the ground, artificialpathways (fractures) have to be createdKey technologies: horizontal drilling andModern, hydraulic fracturing techniquesConsequencesNeed to understand geology betterNeed for much higher number of extraction pointsSource: DTE Energy, EON (2010)Energy security: How to ensure supply for the EU and its neighbours?29th April, 2011.
4Unconventional gas in the USA and world shale gas resources by region US: share of unconventional gas in the total gas output jumped from 44% (2005) to 50 (2008) and projected to rise to almost 60% (2030)National Petroleum Council (NPC): 34,7 TCMIEA: 35 TCMCERA: 3-12 TCMIEA: 35 TCM these reserves are enough to substitute natural gas imports for 40 years at current levelsSource: IEA 2009bSource: Rogner 1997, Kawata & Fujita 2001, Makinen 2010.Energy security: How to ensure supply for the EU and its neighbours?29th April, 2011.
5Unconventional gas resources in Europe Europe holds diverse inventory of unconventional gasIndividual size and resource potential in Europe is in same order of magnitude as typical North-American basinsThree major European shale gas basins: Poland, Northern Germany, and Southern North SeaNo production of unconventional gas established yetShale gas Tight gas Coalbed methaneSource: Schlumberger, 2009, E.ON 2010.Geological potential of European region to be utilized in order to improve energy supply!Energy security: How to ensure supply for the EU and its neighbours?29th April, 2011.
6Unconventional projects in Europe - challenges Shell• Three-yearexploratory term inthe Cambrian Alumin southern Sweden• Acquiring seismicdata, drilling pilot in 2010ExxonMobil• 750,000 acres in Lower Saxony Basin• Drilled 3 exploration wellsand another 10 wells plannedGeology and cost structure not well developedResearch phaseMainly state owned mineral rightsdifficulties with licenses and land acces (densily populated)Environmental issuesWell costsEurenergy Resource• Holds 123,000 acres insouthern England’s Weald Basin• Five-year license forexploration drilling3Legs Resources• Five licenses toexplore 1 millionacres in the BalticBasin region• 3D-seismic anddrilling withConocoPhillipsExxonMobil• Holds 400,000 acres in Mako Trough in southeast Hungary• Joint explorationprogram with MOL• $ 300 mn investmentEurenergy Resource• Awarded 1.3 million acres in East Paris Basin• Starting drilling program in 2010OMV• Three-year project in ViennaBasin; very deep• Estimated shale gas potentialat ~ 430 bcmSource: Wood Mackenzie (2009), E.ON (2010)Energy security: How to ensure supply for the EU and its neighbours?29th April, 2011.
7ConclusionsUnconventional gas resources are smaller than in the USAUnconventional geology not well understood in EuropeMore difficult acces to resources than in the USAEnvironmental issuesCostsBUT:Unconventional gas will reduce expected import needs and diversify EU supply in a long runEnergy security: How to ensure supply for the EU and its neighbours?29th April, 2011.
8Thank you for your attention! Istvan GyermanUniversity of Pécs, Faculty of Business and EconomicsDoctoral School in Regional Policy and EconomicsH-7633 Pécs, Rákóczi út 80Tel: