[ENG] Jagiellonski Institute’s position within the European Commission public consultation on the development of unconventional fossil fuels in Europe

Analiza 24 stycznia 2013, 09:39
[ENG] Jagiellonski Institute’s position within the European Commission public consultation on the development of unconventional fossil fuels in Europe

Jagiellonian Institute has a long experience in Promoting independent approach. It stands to free market enterprise and individual values. Its Believe Is That Should government help to Develop renewables butaccording to free market rules, it Should not damage the enterprises with overregulation and combining it into a big, political projects. Institute members comment on main events Including energy sector. It Creates Analyses about changes in energy environment. It provides an strategic advice for entrepreneurs. The Institute's mission is to raise the Importance of Polish and Central and Eastern Europe in the modern world. IJ works to improve public life in Poland and Europe by development of citizen identity, the development of strategic thinking, the advancement of knowledge and know-how in the field of Socio-Economic Sciences.

IJ is a Business Environment Authority, Whose main aim is to support the development of entrepreneurship in Poland, Promoting scientific and technological development and technology transfer. The objective of the Institute is to Provide consulting services for legal and financial entrepreneurs. Jagiellonian Institute is a member of the cooperative relation called "an innovation cluster", Which Provides support experts in the legal and financial area. IJ is also known for its Democratic Society development activities. In the face of providing estimates that in the Polish and other European countries may be large deposits of shale gas, to assess the opportunities and challenges in this regard before the Old Continent. Chances The main opportunities which lie in the development of the unconventional fossil fuels include:

  1. Diversification of energy sources.
  2. Providing sources of cheap raw materials, which are necessary to fight for sustained economic growth in the current crisis.
  3. Gathering know-how in polish energy companies.

Diversification of energy sources is a priority policy of energy solidarity of the countries of the European Energy Community. As part of its implementation, there are carried Community’s gas interconnection projects. For example, latest Polish developments in this area is the construction of an interconnector linking the Polish and Czech gas transit systems and the expansion of interconnector linking the Polish and German gas systems. In the described context, the initiatives include the creation of pipelines connected with new sources of gas. The flagship project of the European Energy Community in this regard is the Nabucco-West Gas Pipeline, in which are involved investors from Germany, Austria, Hungary, Romania and Turkey.   The development of unconventional gas and oil will accelerate the process of diversification of sources of raw materials, through the creation of new shale-origin hydrocarbon export, f.e. in Poland. It also includes usage of the still-developing European transit infrastructure that will ensure efficient distribution of such materials throughout Community. Unconventional sector will provide cheap access to oil and gas. It will make the prices of these raw materials in Europe fall. It will also lower the dependence of the Energy Community from outside supply monopolysts.   This will have specific consequences:  

  1. Political

It will allow the so-called New Union countries activities to become less dependent on the relationship with the current monopolyst of hydrocarbon supply to that region.  

  1. Economic It will provide cheaper raw materials, which will allow cheaper fulfillment of growing energy demand in the economies of the Community member states and help them in the fight against the economic crisis.

Challenges In addition to the opportunities associated with the development of non-conventional sector, there are also challenges that the European Energy Community countries have to face.   They can be classified as:  

  1. Political

  The so-called ‘shale revolution’ in Europe would undermine the interests of lobbies currently in force defending the status quo. Change of it is in the interests of EU citizens, but it can affect the profits of competing suppliers of raw materials and energy to countries that have a potentially large deposits of shale gas and Community as a whole. For the sake of the interests of its citizens the Community must protect the development of a new sector from the negative political impact from inside and outside of it. The European Commission must protect the oil and gas sector unconventional from discrimination. To do this, European Commision should seek a political consensus and a common position of the European countries from European Community under the rule of policy priorities of energy solidarity in the European Union.  

  1. Economic

The development of the unconventional sector is a great opportunity for the EU economy, which is why the European Commission should support investors interested in it. Overregulation on Community level may lead to a reduction in the profitability of investment in new sector. Most of the regulations should remain at the national level, and the part of it on the Community level should only set the highest technology and business standards for the sector. The European Commission should strive for the lowest amount of such adjustment and the highest value of each one regulation. Existing ones should be clear and understandable for investors. The development of the unconventional sector is a great opportunity for the EU economy, which is why the European Commission should support investors interested in it As a result the positive EC approach will improve the EU GDP structure.  

  1. Social

Community citizens' concerns arising from environmental reasons can lead to blockage of the prospective investments in the new sector. Therefore the European Commission should set high standards of transparency for companies and governments operating within it. On the Community level there should be provided general instructions ensuring highest standards possible and legal consequences for violators. Companies and governments have to provide a responsible campaign on its activities in this field. The European Commission should also recommend to the Member States to introduce strict environmental regulations on the national level adapted to the particularities of each one of them. Nevertheless the environmental regulation should focus on protecting the environment and not allowing companies outside EU to influence the investment process (directly or indirectly).   Survey sent to EC - Opinia IJ dla KE ws. paliw niekonwencjonalnych

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