Strong markets key to Energy Union success

Europe should back exploration and production of oil and gas both domestically and across neighbouring regions, if it wants a successful Energy Union, the International Association of Oil & Gas Producers (IOGP) said today.

In a new position paper on the Energy Union – released just ahead of the publication of the European Commission strategy on the issue – IOGP underlines how exploration and production of oil and gas, together with strategic policies improving market competition, can help the EU face its energy challenges.

“There is an abundance of natural gas in and around Europe: the North Sea, the Black Sea, the Caspian, the Mediterranean, the Arctic and shale gas. The EU should take the full benefit of this potential, which can bring royalties, cleaner fuel, jobs, and innovation,” said Roland Festor, IOGP’s EU affairs director.

Gas plays a vital role in securing energy supply. It can also help build an Energy Union in line with the EU climate ambitions. Switching from coal to gas could cut CO2 emissions in electricity production by roughly half. Gas power plants are also needed to balance variable renewable energy sources like wind and solar.

To live up to its ambitions, the Energy Union will need a fully-functioning internal energy market. Robust wholesale energy markets will help deliver a secure supply and trigger the necessary investment in infrastructure and innovation. Experience in Europe shows that domestic oil and gas production fosters the development of competitive, active wholesale gas markets.

“The Energy Union should focus on measures that boost competition, rather than undermine it. We would warn against common gas purchasing mechanisms, but we encourage the EU to instead consider gas release programmes and promote price liberalisation across member countries and well-functioning gas and power wholesale markets,” Mr. Festor said.

Adapted from press release by Joe Green

Published on 24/02/2015

Get your FREE Oilfield Technology magazine »

Get your FREE trial of Hydrocarbon Engineering magazine »

Get your FREE trial of World Pipelines magazine »


Related articles

Europe and the Americas: 14th April refining news

A look at some of the latest refining news from Europe and the Americas.

Europe moves closer to commercial shale production

Hydraulic fracturing has yet to make an impact outside of the US as operators continue to face environmental worries and logistical challenges.

Europe: Still waiting

Luisa Sykes, Euro Petroleum Consultants, discusses the European refining market in 2013 and looks at how recovery in the refining sector has been postponed for another year.

Europe: Mid January update

A brief look at some of the recent downstream news from Europe.

Recommend magazines

  Oilfield Technology