Comparing the game changing analysis of US shale gas and the reality in Europe exposes how traditional risks affect the much hyped industry. Understanding the risks for the European shale gas industry exposes a range of constraints that impact the growth of the industry. The debate around shale gas as a ‘game changer’ needs to give way – particularly in the media – to a new level of analysis that sees the industry as bound by traditional political-economic risks.
Providing an effective political-economic analysis of shale gas requires separating different elements of the industry. Just as the study of oil has multiple dimensions with a mature analysis ‘industry,’ shale gas has suffered from the element of news media hype and an over reliance on the geological and technical risk analysis of extraction. Academia and scientific forums are catching up, but while everyone waits regulators, politicians and the industry itself are being called on to make immediate decisions. This produces its own set of risks, which correspond more closely with political-economic risk that have long term impacts on the industry’s long term growth.
To read more, click here for the full Natural Gas Europe article.