Denmark To Join Shale Gas Quest In Europe
OSLO, June 26 (Reuters) - A town in northern Denmark has given the green light to French energy major Total to drill the first test wells for shale gas in the Nordic country where conventional gas output is dropping, a spokeswoman said on Thursday.
Last year, Denmark consumed more energy than it produced for the first time since 1997. Though the country remains a net oil and gas exporter, output for the two fell by 13 percent and 18 percent respectively over 2013, Danish energy agency data show.
"The city council of Frederikshavn municipality issued a permit to start test-drilling for shale gas reserves in the ground," said municipality spokeswoman Karin Rasmussen.
"A consortium consisting of French energy company Total and state-owned North Sea Fund (Nordsoefonden) are planning to launch an exploration well late summer this year."
Total, which has an 80 percent stake in the consortium, was not immediately available for comment, while a Brussels-based shale gas lobby group applauded the decision.
"Denmark, along with the UK, Spain, Poland and Romania, has made a sensible and balanced decision that shale gas has an important role to play in meeting its future energy requirements," Shale Gas Europe said in a statement.
Member states such as Britain and Poland are pushing hard for the development of shale gas, seen as one way to lessen European dependence on Russian natural gas, as well as to lower energy costs as it has in the United States.
Rasmussen said, however, that Total will initially be permitted only to drill only conventional wells to take test samples in Denmark, without using hydraulic fracturing, in which chemicals, sand and water are blasted deep into the earth to break up shale formations and allow gas to escape.
Environmental groups have protested at shale gas exploration plans in Denmark, fearing that hydraulic fracturing could contaminate groundwater. This method will in any case require a separate environmental impact study and permit, Rasmussen said.
The government issued two licences in 2010 for Total and North Sea Fund to explore for oil and gas in northeast Denmark, where shale formations lie at depths of around 4,000 metres.
Production of shale gas in Denmark was not expected to start earlier than around 2020, Shale Gas Europe said.
Denmark exports gas to Germany, the Netherlands and Sweden. The latter is fully dependent on Danish gas supplies.
(Reporting by Nerijus Adomaitis; Editing by Mark Heinrich)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension