Merkel Says US Shale Gas Might Help Europe Diversify Energy

German Chancellor Angela Merkel said on Friday that imports of U.S. shale gas could eventually be an option for European countries seeking to diversify their energy sources but the United States must first build the infrastructure to export.

“Many people think that this could be one component, if the United States decided to export shale gas,” she told reporters after European Union leaders discussed how to diversify energy sources away from reliance on Russian oil and gas.

10 Comments on "Merkel Says US Shale Gas Might Help Europe Diversify Energy"

Keith on Sat, 22nd Mar 2014 2:54 am 



As I said before, the Ukraine situation is a lot about getting fracking on European soil. Of course there are other reasons. A good chess player always makes a move that may result in many possibilities.

rockman on Sat, 22nd Mar 2014 3:45 am 



“…but the United States must first build the infrastructure to export.” And again for those that missed it: the US currently produces 93% of the NG we burn and import the other 7%. The only NG we could export is that which we are using to run our economy now.

Of course if companies can make a better profit exporting US production they would do so. But that doesn’t mean Germany et al would get NG any cheaper then they would from the Russians. But then consider if, after many years and 100’s of $billions invested in LNG export infrastructure, the US were shipping a lot of our NG to the EU we would have to be importing it from someone else. Or maybe we’ll eventually be producing more than our demand. But if the oil patch was going to develop a lot more NG we’ll need higher prices. prices that would increase the price of our LNG exports.

I suspect the German lady has been listening to US politicians and, like many of them, thinks the US currently has greater NG production then we consume. What a sad commentary about the leader of the country which is suppose to the shining star of the EU economies.

GregT on Sat, 22nd Mar 2014 6:04 am 



The collapse is getting closer, how long until the last major holdout, Iran, will be taken down?

Davy, Hermann, MO on Sat, 22nd Mar 2014 12:38 pm 



This statement shows how leaders today are just not able to be on top of every issue. Their advisors are focused people with agendas and lack broad based knowledge. The markets will distort in the name of profit and greed. We here know the realities of US gas exports as Rock explains so well. These statements are just talk. When politicians are face with short term needs that become large and expensive long term policies these long term policies evaporate. Politician live in the very short term. You need dictators or military to impose long term policies without the worry of pain in society or the economy.

ghung on Sat, 22nd Mar 2014 1:06 pm 



I left this comment at Rigzone. Not sure if it’ll get posted.

“Someone needs to inform the Chancellor that the US is a net importer of natural gas. Maybe she could suggest which US consumers will be going without since their share will be going to Germany. Also, US consumers need to know who’ll pay for the LNG plants needed to sell their gas to the EU. Either way, US consumers will be paying more,, but that will happen anyway, since they have all sorts of plans for their ‘abundant’ natural gas.

Pops on Sat, 22nd Mar 2014 8:45 pm 



Go here and look at the chart of gas in storage and tell me we want to be an exporter
http://ir.eia.gov/ngs/ngs.html

Hint: typical for this time of year storage is over 1,900BCF
This year = 953BCF

Kenz300 on Sat, 22nd Mar 2014 10:10 pm 



Europe and the rest of the world all need to diversify the energy they use.

Wind, solar, wave energy, geothermal and second generation biofuels made from algae, cellulose and waste can all help to diversify the energy mix.

Local energy production with local labor helps with energy security and economic security.

Bob Owens on Sat, 22nd Mar 2014 11:54 pm 



None of this is going to happen. These people think dreams are the highest form of reality. A year from now most of this will be forgotten; the great plans will have evaporated for lack of capital and gas. I wonder: Will Crimea set the tone for a cascade of independence votes around the world? Maybe…

Makati1 on Sun, 23rd Mar 2014 3:12 am 



Pops, That is about 2 weeks worth of NG in reserve.

http://www.eia.gov/dnav/ng/ng_cons_sum_dcu_nus_a.htm

Henry Larry on Fri, 22nd Dec 2023 6:32 am 



Expanding energy options beyond Russian sources seems prudent. Merkels suggestion about considering U.S. shale gas underscores the importance of diversification in the wake of current geopolitical concerns.
Professional Hauling Services in Milwaukee WI