Europe has enough gas to meet around half of its demand for another 25 years with 5,100 billion cubic meters (bcm) of remaining proved natural gas resources, according to the latest report of the International Association of Oil and Gas Producers (IOGP).
International energy consultancy Wood Mackenzie conducted an analysis of remaining gas volumes in Europe upon a request from the IOGP.
'The responsible exploration and development of Europe’s gas resources has the potential to secure energy supply, skilled jobs and government revenues for decades to come,' the IOGP said.
The report showed that 50 percent of estimated European gas demand is currently supplied by European production, but warned that market interconnectivity is necessary if Europe wants to reap the full benefits of its remaining indigenous gas potential.
European resources could still supply one third of EU gas demand under a 2 degree Celsius scenario in 2040, the IOGP said, and added, 'Europe currently has around 5,100 bcm of commercial and technically recoverable natural gas resources. This figure does not include an estimated 989 bcm of resources that are classed as yet to find.'
'Yet-to-find resource expectations have also risen, driven by conducive policies and encouraging prospects in Croatia, Cyprus, Greenland, Ireland, Norway, and Romania,' the consultancy explained.
It said that successful results of recent licensing rounds show that oil and gas companies are investing in Europe’s many prospective basins, both onshore and offshore.
'Unconventional reservoirs have the potential to add to this effort. European exploration activity is recovering since 2016, with success rates and discovery costs back to 2009-2010 levels,' it noted.
It stressed that between 2016 and 2025, over €50 billion of exploration expenditure is expected in EU mature areas or roughly €5 billion per year.
The IOGP said that Europe’s own resources can continue to be a secure foundation to meet domestic demand, complemented by future pipeline and LNG imports.
'More gas hubs are needed in certain regions of Europe to provide liquidity and transparency. Europe has to compete with other regions to attract upstream industry investment. A stable and predictable regulatory environment will be critical to maximize the recovery of Europe’s gas resources for the benefit of its citizens,' it said.
By Murat Temizer
Anadolu Agency
energy@aa.com.tr