Development in the field of oil and gas exploration in Europe has led to various opportunities. Recently a publication issued by French authorities drew the attention of many and sent the shares of a number of companies to comparatively lower prices. Though the effect of these announcements is transient, European countries that are not exploring for oil and gas will always be at the sympathy of Russia. Whenever these political matters are sorted out, investors will be able to cash in on shares of appropriate companies. Those who prepare to do so are likely to have a secure future.
French authorities focused their attention on the various activities related to oil and gas exploration in the country and the major reason of concern are the potential environmental impacts of these activities. Nathalie Kosciusko -Morzet, who is the Environmental Minister, addressed the parliament saying he will be holding a meeting very soon with the entities and people who hold permits for oil shale exploration. He also assured that he would prevent the continuation of these activities if the environmental conditions are not favorable.
There is no question about the fact that France is very troubled by the harmful effects of oil and gas drilling activities on the environment. It is important for any country to have proper controls in place in order to prevent any onsite disaster. If we take a broad look at the consumption and supply of energy we come to a conclusion that it significantly points a finger towards the need for exploration activities. It does not happen in France alone but also in rest of the Europe.
As we all have seen, the market dealing with natural gas has not matured enough in Europe where the stock market offers a high premium on natural gas. Now the big question is why the current prices of natural gas supplies in Europe are double the price in the US. This is because these days there is a new issue heating up and this time it is not related to nuclear weapons but actually is natural gas. Many European countries are still dependent on Gazprom, owned by Russia, for their oil and gas supplies. In 2009 Gazprom was the only company that could have contributed 84 percent to the gas production of Russia. Due to Gazprom's near-monopoly in the market of natural gas, Europe's price entirely depends on the prices at the Russian border.
It is clear why it is necessary for Europe not to depend on Russia for natural gas. Oil and gas strikes in Europe will help break the dependence on Russia and Gazprom which prevails over Finland, Bulgaria, Poland and the rest of the Europe.
Natural gas prices can be expected to rise in the coming months, especially if we put a brake on oil and gas exploration activities in Europe.
French authorities focused their attention on the various activities related to oil and gas exploration in the country and the major reason of concern are the potential environmental impacts of these activities. Nathalie Kosciusko -Morzet, who is the Environmental Minister, addressed the parliament saying he will be holding a meeting very soon with the entities and people who hold permits for oil shale exploration. He also assured that he would prevent the continuation of these activities if the environmental conditions are not favorable.
There is no question about the fact that France is very troubled by the harmful effects of oil and gas drilling activities on the environment. It is important for any country to have proper controls in place in order to prevent any onsite disaster. If we take a broad look at the consumption and supply of energy we come to a conclusion that it significantly points a finger towards the need for exploration activities. It does not happen in France alone but also in rest of the Europe.
As we all have seen, the market dealing with natural gas has not matured enough in Europe where the stock market offers a high premium on natural gas. Now the big question is why the current prices of natural gas supplies in Europe are double the price in the US. This is because these days there is a new issue heating up and this time it is not related to nuclear weapons but actually is natural gas. Many European countries are still dependent on Gazprom, owned by Russia, for their oil and gas supplies. In 2009 Gazprom was the only company that could have contributed 84 percent to the gas production of Russia. Due to Gazprom's near-monopoly in the market of natural gas, Europe's price entirely depends on the prices at the Russian border.
It is clear why it is necessary for Europe not to depend on Russia for natural gas. Oil and gas strikes in Europe will help break the dependence on Russia and Gazprom which prevails over Finland, Bulgaria, Poland and the rest of the Europe.
Natural gas prices can be expected to rise in the coming months, especially if we put a brake on oil and gas exploration activities in Europe.
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