The old continent has almost as many technically recoverable shale gas (natural gas trapped in shale formations) as Americans. Europe backup is 639 trillion cubic feet, compared with 862, according to the United American energy information administration, an agency of the Government. But technically recoverable does not mean the economy recovered, notes Peter Hughes Ricardo Strategic Consulting.
The cost is higher in Europe, for several reasons. First, the geology of Europe is less favourable: shale deposits that tend to be more underground and it's hard to take.
Second, America has a long history of oil and gas drilling, which has given rise to major industry and competitive oil-service meremang with equipment and know-how. Europe has nothing compared to it. In 2008, at an elevation of gas explosion in the United States, 1,600 were in operational rigs. In Europe there are now only 100. Americans more cut-throat market drives the cost down. Single Gas well in Europe might cost as much as $ 14 m was sunk, three and a half times more than Americans, estimated Deutsche Bank.
Third, America's gas industry face fewer regulations and friendlier than Europe. Call it the effect of Dick Cheney. And fourth, the drillers go wild, if they attack the rich, enjoying access to a spider is pipelines, so they can get their gas to market. Europe has nothing like the network or open-access rules.