EUROPEAN UNCONVENTIONAL RESOURCES - THE RACE IS ON

UNCONVENTIONAL GAS RESOURCES IS ON THE				Trading & Transportation: Updates on
RISE				European Trends from leading companies including
Exploration and production of unconventional gas				DONG, EON, GTS, GASUNIE, RWE and more!
resources have been the focus of US authorities				The Impact Of The Economic Crisis On Gas
and industry for years already. This trend has				Demand & Pricing: One of the biggest
started in Europe, where Germany, Italy, UK,				questions on everyone's lips - discussions featured
Poland and other European countries have begun				leading companies such as: BP, OIES, ECONGAS,
to focus on these resources. More attention has				NatGas, The Brattle Group, RWE and more
been given by the industry to explore for				Supply & Demand: Europe's Future Supply
unconventional gas resources, like Gas Shales,				Demand Balance & Global LNG Flows Given
Coal Bed Methane (CBM), tight Gas and potentially				The Impact Of Unconventional Gas
oil shale resources as well.				Investment Challenges For European
Indications of this spike in interest are the amount				Infrastructure
of conferences arranged and to be arranged				German Market Update: Gas Demand, Merger Of
around Europe in 2010.				The Gas Areas, Balancing, Storage, Moving Gas
This article will highlight some of the conferences				Cross Borders and more
workshops held and planned to be held during this				Key companies in attendance at Flame 2010
year as well as discuss some of the industry				included:
efforts planned and already started in Europe.				Gazprom Export
Interesting is the participation of major players				�
from the US, and talks about their experience				Total Gas & Power
from exploring and producing of these				�
unconventional resources.				Centrica Energy
Also worth noticing, is the absence of authorities				�
from the US when it comes to environmental				Shell
concerns, regulatory discussions and so on?				E.ON
Technology enables utilization of these resources				�
in manners not possible only few years ago. Rapid				Cheniere Supply & Marketing
development of technology and understanding of				BP Global
these unconventional resources makes these				Gas
resources a formidable untapped potential for oil				ExxonMobil
and gas companies.				GDF Suez Global LNG
In the US alone, these resources are believed to				GasTerra
supply over 50% of the US production of gas by				RWE Supply & Trading
2020.				GASPOOL Balancing
In Europe, international oil and gas companies have				Services
begun the race for acreage to explore for the				Nabucco Pipeline
unconventional resource potential. Countries like				Repsol Gas Natural
Poland, France and UK together with Germany				ENbW
have begun to focus more on these resources				Cepsa
now. However, the understanding of the potential				�
for these resources are not well understood as of				Gasunie and many more!
yet in this region of the world.				Expert views were given from companies
ConocoPhillips together with 3Legs are planning to				including: DONG, London Energy Brokers'
drill their first proof of concept well in Poland in				Association, E.ON Energy Trading, RWE Supply
the latter part of June this year.				& Trading, GTS, GTE & Gasunie
ExxonMobil has secured significant acreage in				Deutschland
Poland for exploring of shale gas and other				Key presentations included:
unconventional production opportunities in Europe.				Alaa Abu Jbara, Marketing Director, QATARGAS
BNK has secured 2.4 million acres of net acreage				Steve Hamilton, EVP Strategy, GDF SUEZ
in 3 basins within Saxony-Anhalt region in				GLOBAL LNG
Germany for exploitation of unconventional				Jean Abiteboul, President, CHENIERE SUPPLY
resources. In addition the company has around 1.1				& MARKETING
million net acres in Europe.				Guy Broggi, Head of LNG Supply, TOTAL GAS
Total has acreage in Montelimar in the Southern				& POWER
France and is evaluating this acreage before				Simon Bonini, Director LNG, CENTRICA
making any decisions to follow up its efforts from				Andy Flower, LNG Consultant
the US gas shale campaign. They have indicated				David Wells, VP Global LNG Supply, SHELL GAS
interest in Denmark and Germany.				& POWER
The Polish oil company Orlen has made gas shale				Stefan Bürkle, LNG Group COO, E.ON
discoveries within the Lublin region of Poland and				RUHRGAS
signed letters of intent with ENI and Shell.				Simon Cattle, Head of Supply & Trading, Gas
Poland authorities have issued 58 licenses over the				Trading - Europe and LNG, BP
past 2 years to American companies for shale				David Fuller, Head of LNG, RWE SUPPLY &
gas exploration within their territories.				TRADING
Shell has drilled 2 out of three wells looking for				Thierry Trouvé, Chief Executive Officer,
gas shales in the southern part of Sweden, called				ELENGY
Skane. Shell has indicated that these resources				Gregorio Morales, LNG Trading Manager, STREAM
should cover the gas need for Sweden for at				RGN
least 10 years to come.
Igas has drilled one of Europe's first wells for				Next venue is planned as The 17th Annual Event
"unconventional" gas in the UK, extracted from				in the Spring 2011- Hotel Okura, Amsterdam
source rocks traditionally rejected by the industry
as uneconomic. Igas has taken leases on				UNCONVENTIONAL GAS 2010
300,000 acres of shale, a sedimentary rock,				Maximizing efficiency; reducing costs; extracting
across north Wales and north-west England				best value
Although exploration is concentrated on shale and				Unconventional gas resources are expected to
coal bed gas in a corridor running from Poland				steer the future of the energy sector in the
through Germany to the UK, many other areas in				coming years.
Europe like the Paris Basin and the Pannonian Basin				SMi's 3rd annual Unconventional
in Hungary are attracting interest. A large variety				Gas conference will be taking a practical look at
of unconventional exploration players are active,				unconventional gas production challenges, where
ranging from major companies like Chevron and				the pressure is on to reduce costs and still deliver
ExxonMobil to the smaller more specialized				positive results.
companies like Lane Energy and local companies				Monday 27th and Tuesday 28th September 2010,
like Rhein Petroleum.				Marriot Hotel regents Park, London, UK.
Gazprom has realized that this focus on the				To make the most from the underlying
unconventional gas resource potential in Europe,				commercial opportunities, companies must be
could poses a serious risk for Gazprom and their				agile in analysing their business needs and
energy export values. Therefore Russia has				implement robust strategies to
started a massive anti-shale propaganda to delay				maximise the benefit from these resources. At
and stall any European Gas Shale efforts.				the same time technologies and the supporting
The industry's ability to deploy the right				infrastructure have to be both efficient and
technologies and the authorities ability to govern				economically viable to ensure success.
the exploitation of these resources will be key				Europe's leading Unconventional Gas conference
success factors for these plays in Europe.				brings together industry experts and project
Some efforts have been made to look into the				operators to discuss the drivers, constraints and
Gas Shale and CBM potential within Ukraine, as				opportunities for non-conventional operations.
this could provide another dimension to the				Strategic examples and practical case studies will
European Energy debate and energy security				provide you with the know-how to succeed by
issues especially.				being able to identify potential pitfalls and coming
Since the potential in Ukraine can be massive, it				up with suitable solutions
deserves attention from Ukraine authorities as
well as the industry players to develop a thorough				GLOBAL SHALE GAS SUMMIT 2010
understanding of its true potential and				Venue: Sofitel Warsaw Victoria Hotel, Poland, July
development potential.				19 – 20th 2010
				What Makes A Financially Viable Shale Gas
BOOK TO READ				Prospect?
The balance of need for Gas as a future energy				The abundance in recent years of US shale gas
source in Europe versus renewable energy				has sparked enormous interest from the oil and
campaign in Europe is essential for any project				gas industry into different shale regions around
economics in Europe.				the world, where exploration is currently
Gunter Oettinger, the new European				underway to find out if, and where, shale gas will
Commissioner for energy, stresses the value of				be as productive as it is in North America.
renewable energy. Forecasts indicate that EU is on				But what can governments do to encourage the
course to meet its renewable goal for 2020. EU is				development of shale gas in their own countries?
tasked to ensure their member states to reach				How can investment in the expensive E+P
and go beyond the 20 percent target set out in				process be encouraged, given the environmental
their strategic plans.				and regulatory barriers-to-entry faced in some
The political pressure from EU political leaders to				regions?
ensure a renewable energy part of their energy				How can shale gas production become
budgets, pressure the confidence in future				cost-competitive in different regions, given the
demand for gas and there are risks it could choke				current low price of gas?
off investments within Unconventional resource				As one of the hottest geographical areas so far
projects within Europe. This due to the fact that				identified for exploring the potential for shale gas
there are no guarantee for supply needs. It will				as a cost-competitive resource, Warsaw is the
also weigh against gas-fired power stations				ideal venue for this major Summit, enabling the
planned in Europe as other forms of energy could				global shale gas industry to meet with the key
supply these power stations in the near future. It				government and industry players in Poland, and
is therefore a need to look at project profitability				potentially facilitating future energy independence
beyond 2020 for any Unconventional Gas projects				from their Russian neighbors'.
in Europe.				Having seen the drastic impact of shale gas on
Some European Unconventional Oil and Gas				both the North American and global energy
Resource Conferences				balance now is a critical time to assess the
GLOBAL UNCONVENTIONAL GAS				realistic prospects and genuine business
				opportunities for shale gas production worldwide,
Unconventional gas provides abundant, affordable,				by addressing the geological data and the
and cleaner-burning energy to a world demanding				commercial feasibility of shale gas technology
stable energy prices, security, and solutions to the				when applied to other regions.
climate challenge. Advances in technology have				Expanding Cost-Competitive Shale Gas Worldwide
enabled these "new" resources to be developed
economically in the United States — now				Where Do The Geological Prospects For Shale
supplying over 40% of total U.S. production and				Gas Lie?
expected to supply well over 50% by 2020. The				Without yet having conclusive data from shale
transfer of knowledge combined with new				gas drilling in Europe or elsewhere in the world, the
technology and processes tailored to specific				industry nevertheless needs clarity on how and
resource plays will be essential to developing				where shale gas is likely to be a commercially
unconventional gas in other regions of the world.				viable resource. Moreover, outlining what data is
Global Unconventional Gas 2010: Unlocking Your				available and what data is still needed to predict
Potential is the world's premier international				the future productivity of shales, compared to
conference and workshop designed to transfer				the three biggest shale plays in the US will be
knowledge and best practices gained in the U.S.				critical. The Summit will feature a series of
Energy professionals and stakeholders will hear				detailed panels given by senior geologists from
from top U.S. and international experts about the				different regions of the world. Combined with
enormous potential of gas shale and other				governments talking about how regulatory and
unconventional gas resources across the globe				land use issues will affect the commerciality of
and learn about the latest issues, approaches,				shale gas in these regions, this will help companies
processes and technologies key to unlocking the				to define how they can gain entry and move
resources in their own countries.				forward in different regions.
Who will be there— E&P Managers ,				Cost Reduction, Optimization & Offsetting
Engineers , Geologists , Investors , Policy Makers ,				Having delved into the geological data by region,
Officials				countries need to find out exactly how the capital
Conference highlights you won't want to miss—				and energy-intensive exploration, drilling,
Dynamic keynote addresses on the role of				completion and production processes can be
unconventional gas in a sustainable global energy				optimized to make shale gas commercially-viable.
mix and what additional gas supplies make possible				Leading service companies in the field will deliver
in terms of demand				innovative tools & techniques for throughout
Presentations from leading E&P and service				the exploration and production processes of shale
companies addressing key issues associated with				gas, including cost-optimization of drilling and
resource development				completion. This is also a chance to discuss how
Candid, interactive panel discussions about				service companies envisage supplying demand for
opportunities and insights into key global and U.S.				shale gas in the future and the cost implications of
shale plays				ramping up supply chain capabilities in new regions.
A learning workshop to review current and				Opening the floor for a discussion on the
developing technologies				application of North American technologies globally,
A Welcome Reception, luncheons, and				breakfast briefings from independent US shale gas
refreshment breaks, where you'll share views and				experts will bring newcomers up-to-speed on the
experiences with world leaders in unconventional				economics, mechanics, and challenges of horizontal
gas resource development.				drilling and the use of the hydraulic fracturing
Hear keynote presentations and perspectives				technique.
from—				Partnerships & Regionally-Specific Regulation -
Aubrey K. McClendon, Chairman and CEO,				Strategies For Entry Into New Markets
Chesapeake Energy Corporation				Bringing government and industry together from
Dr. Abdul Rahim Hashim, President, IGU				Europe and beyond, this is the premier business
Christopher Flavin, President, Worldwatch Institute				conference to focus purely on strategies and
Chris Smith, Deputy Assistant Secretary, U.S.				solutions for expanding global shale gas. Here, US
Department of Energy				shale gas experts will meet with governments to
Leading shale technology, resource, and business				facilitate commercial shale gas development
experts				outside of North America for the first time.
Prominent European and global energy officials				High on the agenda for industry and government,
What you'll gain—				this summit will also address the importance of
A real-time perspective on the global prospects				managing and mitigating environmental risks,
for unconventional gas				including water availability, disposal and reuse, to
Proven approaches to accelerated unconventional				understand what the cost-implications of
resource development				environmental risk will be.
Resources and techniques to effectively address				The Need for Shale Gas: Why This Event Comes
technology challenges				At A Crucial Time For The Global Industry
Knowledge and connections to leading and				With US technical innovations allowing gas to be
emerging industry players				extracted in different shales across North
				America from previously impenetrable reserves,
FLAME				shale gas has never been a more important issue
Over 700 of Europe's leading energy professionals				for the global oil and gas industry and those in
met to discuss the new agenda for gas and LNG				charge of securing future gas supply. At this
in Amsterdam at Flame 2010. Unconventional gas,				summit the industry will learn from US
new markets for LNG and commodity prices				experiences, identify the challenges of expanding
dominated discussions as players met to get the				cost-competitive shale gas production worldwide,
latest update on global gas opportunities and				in terms of strategies and technology, and
challenges.				overcome regulatory and environmental barriers
Dr. Richard G. Newell, of the U.S. Energy				to bring this new resource to market at this
Information Administration (EIA) and Mike Stice of				crucial time, to meet the growing demands of gas
CHESAPEAKE ENERGY shared their thoughts on				consumers.
the development of and prospects for				The author:
unconventional gas in the USA.				Stig-Arne Kristoffersen has a background as civil
LNG Summit Day - Monday 1st March 2010 - Key				engineer and geoscientist. He has worked mainly
questions discussed included the impact of				within the oil and gas industry from the mid
unconventional gas and new LNG supplies coming				1980s. He has written a few fictional novels as
online on global LNG flows - will we see the				well as being the author of some professional
emergence of a mature spot market for LNG?				litterature within oil and gas sector. He act as a
How will unconventional gas affect Summer 2010's				writer to various web sites.
LNG flows?

Shuksan Energy

EUROPEAN UNCONVENTIONAL RESOURCES - THE RACE IS ON

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