The Reluctant Fracker: Shale Gas and the Energy Transition Towards Sustainability in Europe

Summary

ABSTRACT

A standard regulatory approach to shale gas without a deeper understanding of the fundamental legal structure that supports the energy system would be a poor fit for the sustainability problem; then the question arises of whether the sustainable development paradigm and the European energy market model are suitable for securing the transition to a low-carbon energy system. The chapter provides a critical appraisal of the shale gas sustainability problem and highlights two key issues: the risk of reducing the complexity of energy transition to the level of a simple variable geometry problem related to the energy mix and physical infrastructure, rather than a real energy shift ; and the tendency to neglect the ‘intangible infrastructure’ of the powers and institutions that regulate the highly complex energy system. Shale gas development and the sustainability paradigm are bound together by a particular episteme of the economic system. From this theoretical standpoint, the reconceptualisation of sustainability requires a paradigm shift from the traditional to a different constitutional ‘regulatory idea’ whose goal should be to reduce systemic risks.

INTRODUCTION: SHALE GAS AND THE EUROPEAN ENERGY TRILEMMA

Shale gas is a matter of contested complexity, considered to be a game-changer in the energy sector and the main vector of the US energy transition. Despite criticism and resistance, the American fracking revolution has boosted the use of this unconventional gas, which currently accounts for 60 % of domestic gas production. By contrast, Europe is more reluctant about fracking, which at first glance would appear to reflect environmental concerns over the use of this drilling technology. So although natural gas currently accounts for one-quarter of the primary energy consumption of the European Union (EU), and despite the fact that natural gas import dependency had risen to 67 % in 2011 and was projected to rise further, development of the EU shale gas market has been negligible and the regulatory environment is highly fragmented. As such, the basic aim of this chapter might be to define a toolbox of sound regulatory guidelines on shale gas and sustainability for Europe. However, a standard regulatory approach to shale gas without a deeper understanding of the fundamental legal structure that supports the energy system would be a poor fit for the sustainability problem.