Unconventional Gas and EU Energy Policy
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1 Unconventional Gas and EU Energy Policy Copenhagen, 16 th June 2011 Michael Schuetz Policy Officer Indigenous Fossil Fuels Disclaimer: This presentation is a working-level input on unconventional gas and not an official position of the European Commission. Should you wish to obtain a political statement or for media related purposes please contact the Commission's press service or the Commissioner's spokesperson.
2 Gas in EU Energy Mix Source: Eurostat 2
3 EU-27 Import Dependency in % ,7% 94,1% 80 82,4% 84,3% 82,8% 75,9% 60 62,3% 57,7% (based on 2009 baseline scenario) OIL GAS 3
4 The January 2009 Gas Crisis and its Impact (6-20 January 2009) % of missing gas supply 300 mcm/d for 14 days > 75 % % % < 25% 0% Ukraine 4
5 .Initial Commission assessment: Unconventional gas could strengthen domestic production and contribute to security of supply EU will still have to import most of its gas.further presentation:» Commission energy policy priorities and their relation to unconventional gas» European Union legal framework for unconventional gas projects» Specific activities of the Commission on unconventional gas 5
6 Commission Energy Policy Priorities.Focus on implementing agreed policies (internal energy market, security of gas supply, energy efficiency, Renewables Directive).EU Energy Strategy European Energy Infrastructure Package.Energy Efficiency Action Plan.Communication on External Energy Relations.Energy Roadmap
7 Third Internal Market Package.Non-discriminatory access to networks is an essential condition to allow fair competition between suppliers» Regulation on conditions for access to the natural gas transmission networks (Gas Regulation)» Regulation establishing an Agency for the Cooperation of Energy Regulators (ACER Regulation)» Directive concerning common rules for the internal market in natural gas (Gas Directive).Regulations took direct effect on 3 March
8 EU Energy Infrastructure Package.November 2010: Communication on Energy infrastructure priorities for 2020 and beyond Challenges faced in each sector (electricity, gas, oil, CCS) Strategic planning and proposal for set of tools.2011: Legislative proposal to create a facilitating environment for private and public investments in energy infrastructure Unconventional Gas Unconventional and EU Energy Gas Policy, and Michael EU Energy Schuetz, Policy, 16/06/2011 8
9 European Infrastructures Priorities Gas and Oil 2020 Southern gas corridor Baltic energy market interconnection plan South-North gas interconnections in Western Europe North south gas & oil interconnections in Central & South East Europe 9
10 Energy Roadmap 2050.Support transition to low-carbon energy system in 2050.Focus on energy security, competitiveness as well as decarbonisation, throughout transition.identify European-wide perspective.support from scenario analyses but scenarios cannot be read as policy options» Low Carbon Economy Roadmap came first (8 March)» Conclusions on energy policy challenges will be in Energy Roadmap 2050» Public consultation until 7 March» Informal Energy Council 2-3 May» Adoption planned for end of
11 Principles of EU Policy and Legislation.Member States have right to determine exploitation of energy resources and energy mix (Art. 194 TFEU).Member States are free to set more stringent environmental protection measures than required by EU-legislation (Art.193 TFEU).Subsidiarity.EU-Directives transposed and implemented by Member State..Often EU-Directives set objectives, but means are up to the Member States 11
12 Legal Framework on EU Level.Existing legislation covers all hydrocarbon exploration and production (conventional and unconventional)» Hydrocarbon Directive» Water Framework Directive, Groundwater Directive» Environmental Impact Assessment» REACH (Chemicals)» Natura 2000» Other (waste, noise ) Within this framework Member States have to ensure appropriate licensing and permitting regimes 01/06/
13 Assessing the Potential. In order to further enhance its security of supply, Europe s potential for sustainable extraction and use of conventional and unconventional (shale gas and oil shale) fossil fuel resources should be assessed. [European Council 4. Feb. 2011].Economically recoverable potential?» Following ongoing projects» Explorations in EU just started.jrc literature study focusing on economic impact» Review of the evidence 13
14 Assessing Environmental Impact.Exchange with US» Agreed at EU US Energy Council Nov. 2010» US only country with extensive experience» First activity: conference on 14 March Study (Oct. 2011)» Evaluate appropriateness of EU legal framework Including environment issues» Based on cases in selected Member States» Possible good practices 14
15 Conclusions.Best use of indigenous (fossil) fuels important Economically viable potential unclear.other security of supply policies remain necessary.environmental concerns: credible answers needed.eu has legal framework in place Member States have to ensure appropriate licensing and permitting regimes.important: Innovative companies EU Commission works on further improving gas market conditions and gas infrastructure 15
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