27 February 2012

GPPi and Brookings publish policy paper on shale gas and European energy security

The Global Public Policy Institute and the Brookings Institution have written a new policy paper titled The Impact of Shale Gas on European Energy Security. Released in February 2012, and authored by GPPi’s Andreas Goldthau and Wade Hoxtell, the report is the result of a two-year research and debate project called Common Goals – Different Approaches? Strengthening Transatlantic Cooperation on Global Energy Issues. The project was funded by the European Commission. To learn more about the project, visit: www.globalenergygovernance.net.

In most of the OECD world, gas demand has faltered the past years, a result of the ongoing financial and economic crisis. At the same time, soaring unconventional shale gas production, mainly in the United States, coupled with increasing global capacity in liquefied natural gas, has altered the supply side. As a consequence, compared to the situation only five years ago, natural gas markets have literally been turned upside-down. While economic activity will eventually recover, these unconventional gas developments will have major repercussions for Eurasian gas markets in the medium- to long-term, and possibly European energy security as well.

The new study argues that a number of risks have emerged requiring policy solutions, including investment uncertainty, cartelization of gas markets and price volatility. These so far rather unaddressed side effects could turn the tide against shale gas and its already hyped role as the transition fuel to a low carbon future.

Read the paper The Impact of Shale Gas on European Energy Security.

For more information, please contact Wade Hoxtell.

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