Seeking Alpha

Other parts of the world look upon the U.S. shale boom with envy, and Europe's answer may lie...

Other parts of the world look upon the U.S. shale boom with envy, and Europe's answer may lie beneath the Sahara desert. Algeria, with 231T cubic ft. of recoverable shale gas, is using tax breaks to attract the likes of Exxon Mobil (XOM) to develop its potentially vast reserves. Pipelines under the Mediterranean to Spain and Italy already link Africa’s largest gas exporter into Europe’s grid.
Comments (6)
  • Paris sits on top of a similar formation to Bakken.
    27 Nov 2012, 12:31 PM Reply Like
  • would be pretty tough to reach though wouldn't it without damaging the city? (Not that I care much for Paris but I'm sure Parisians do.)
    27 Nov 2012, 12:33 PM Reply Like
  • Yes, the Mad Woman of Chaillot.
    27 Nov 2012, 02:15 PM Reply Like
  • They could rig up 2 miles outside of Paris and drill under Paris. No different than drilling under the city of Dallas. Regards
    28 Nov 2012, 10:22 AM Reply Like
  • @geologist
    Certainly but the geological makeup of Dallas and Paris is probably very different. I wonder how cost effective that is and what kind of problems they would run into. If I recall correctly Paris is sitting on top of 100's of miles of catacombs and tunnels. If a driller hit one of those or started collapsing tunnels would that cause irreparable harm? Is it worth it?
    28 Nov 2012, 10:27 AM Reply Like
  • My understanding is that another major issue in a lot of Western Europe is that the property owners generally don't enjoy mineral rights, so they get none of the benefit of such development to compensate the risk and hassle. So there is no incentive for anyone but the state and the exploration companies -- to be sure, two powerful stakeholders, but they encounter a tremendous amount of resistance.
    27 Nov 2012, 12:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)