Gas will eventually run out in Europe, not this year, not next year but soon. Delegates to a European gas conference currently being held in Amsterdam have concluded that the only way to solve the gas problem is for Europe to strengthen ties with countries such as Russia and Iran. However, not everybody is happy with that conclusion.
In an address to Flame, Professor Jonathan Stern from the Oxford Institute for Energy Studies said: "The amount of gas extracted from within Europe will start to diminish around 2015. And that will cause problems... we will have to increase our imports from other countries." Strengthen ties
European Union countries have to compete with the United States and Asian countries for gas supplies and the demand for gas has sharply risen throughout Asia and in the US. Solar and wind energy can meet some of Europe's energy needs but more time is needed if alternative energy is going to be a substitute for gas.
Professor Stern says the lack of alternative energy sources necessitates stronger European ties with Russia and energy producing countries in the Middle-East, and he comments: "It's irrelevant if we agree or disagree with the Russians, the Iranians or another possible gas exporters"The professor of energy studies says Europe needs to stop telling other governments how to run their countries:"That's the reason why dialogue between Europe and those countries is so problematic."
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Gas and the Netherlands |
In other words: European politicians and companies have to stop trying to force their way of doing things on gas exporting countries. Because of the increased profits generated by gas exports, these countries have increased their political power. And it is precisely the political power wielded by Russian President Vladimir Putin which is causing concern among European politicians and companies.
There is criticism from another corner as well. This week, Italian human rights activists - they are not the first - called on Italian Prime Minister Romano Prodi not to forget human rights in his trade discussions with Russian President Putin. However, energy is sure to play an important role in the talks between Mr Prodi and his Russian counterpart. Italy's energy giant En is on the point of signing a contract with Russia's state energy company Gazprom.
Soothing words
Gazprom, the world's largest gas company, was also at the Flame conference in Amsterdam and it tried to persuade Flame delegates that the Russian state-owned company is a trustworthy partner. Sergei Korovin, Gazaprom's vice-president of international affairs and head of international projects, says as the world's largest gas producer and exporter, Gazprom will continue to operate in a responsible manner on the national and international gas market.
Soothing words from Gazprom, probably aimed at calming fears that many companies have about investing in Russia ever since Gazprom forced Shell Oil to halve its share in a large-scale gas project on the Sachalin peninsular in December 2006. Shell was financially compensated for giving up 50 percent of its stake in the project, but oil and gas companies want to build up their own reserves in order to guarantee a secure future. Money is not as important.
However, not dealing with Russia is not an option according to dozens of speakers at the Flame conference. Europe needs Russian gas. There are no alternatives.
Tags: conference, energy, eni, europe, Flame, gas, gazprom, iran, needs, prodi, Putin, reserves, slochteren