PETE 4200 PROJECT #1:

EUROPE AND EURASIA

John GorrellBlaine Pelton

Caleb Davidson

Annual Production

In 2009 Europe had a total annual production of 10,516 BCF

The top producers of natural gas in Europe were Norway, the Netherlands, and the UK with 3,654, 2,785, and 2,087 BCF respectively

Eurasia produced 25,818 BCF of natural gas in 2009 Russia was the top producer in the region by far

with a production of 20,610 BCF By the year 2035 Europe is projected to be

producing only about 8,300 BCF a year, whereas Eurasia is expected to increase production to about 39,100 BCF a year

Annual Consumption

In 2009 Europe consumed much more gas than they produced by using a total of 19,324 BCF of natural gas

Germany, the UK, and Italy were the top consumers of natural gas in Europe, using 3,272, 3,109, and 2,756 BCF respectively

Eurasia consumed 21,156 BCF of gas in 2009 which is about 5,000 BCF less than they produced

Russia consumed the most gas in the region by a landslide by consuming 15,524 BCF, with the next closest country, Uzbekistan, consuming a mere 1,632 BCF

Total consumption of natural gas in Europe and Eurasia combined is expected to reach about 49,800 BCF a year by the year 2035

Reserves

In 2011, Europe has 153.822 TCF of proven natural gas reserves

The UK, Poland, and Germany have the greatest amount of reserves with 9.040, 6.200, and 5.820 TCF respectively

In total, Eurasia contains 2,164.8 TCF of proven natural gas reserves

Russia once again leads the pack with 1,680 TCF in reserve with Turkmenistan and Kazakhstan a distant 2nd and 3rd with 265 and 85 TCF a piece in reserve

Exports from Eurasia(2009)

COUNTRY - BCFArmenia – 0Azerbaijan -209Belarus – 0Estonia – 0Georgia – 0Kazakhstan – 0Kyrgyzstan -0Latvia – 0Moldova – 0Russia – 6,325Tajikistan – 0Ukraine – 0Uzbekistan – 0

TOTAL EXPORTS – 8,155 BCF

Pipeline that that feeds Armenia from Russia. This pipeline carries the Natural gas through the country of Georgia.

Exports from Europe

(EIA, 2010)

• Norway is the leader in natural gas exports.• Netherlands in second place but well below Norway.

COUNTRY 2006 2007 2008 2009Austria 93 103 73 122Denmark 185 160 195 141Croatia 0 11 10 7Czech Republic 4 14 34 39France 32 39 35 30Germany 411 432 448 399Hungary 0 1 1 3Netherlands 1,930 1,966 2,180 1,964Norway 2,974 3,012 3,380 3,492Turkey 0 1 15 25United Kingdom 360 367 406 430Poland 2 2 1 1Slovakia 20 6 7 29Italy 13 2 7 4Spain 0 0 2 34Iceland 0 0 0 0Ireland 0 0 0 0Luxembourg 0 0 0 0Macedonia 0 0 0 0Malta 0 0 0 0Montenegro 0 0 0 0Portugal 0 0 0 0Romania 0 0 0 0Serbia 0 0 0 0Slovenia 0 0 0 0Sweden 0 0 0 0Switzerland 0 0 0 0Albania 0 0 0 0Belgium 0 0 0 0Bosnia and Herzegovina 0 0 0 0Bulgaria 0 0 0 0Faroe Islands 0 0 0 0Finland 0 0 0 0Cyprus 0 0 0 0Gibraltar 0 0 0 0Greece 0 0 0 0

TOTALEurope 6,025 6,116 6,795 6,722

BCF/year

• Spain exported no natural gas in 2006.• 34 BCF exported in 2009.

Countries with increased exports(2006-2009)1. Austria +292. Croatia +73. Czech Republic +354. Hungary +35. Netherlands +346. Norway +5187. Turkey +258. UK +709. Slovakia +2910.Spain +34

World Predicted Exports(EIA)

EIA. (2010, September 19). INTERNATIONAL ENERGY OUTLOOK 2011. Retrieved September 20, 2011, from EIA: http://205.254.135.24/forecasts/ieo/nat_gas.cfm

PRICE OF NATURAL GAS Eurasia 2011 Prices

Russia, Aug 2011 403.20 USD/Thousand cubic meter. http://www.indexmundi.com/ Very limited information of current gas prices and projected prices for

Eurasia. Projected increase in price through 2012.

Europe 2011 Prices 24.10 €/MWh , 32.71 USD/MWh

http://www.energy.eu/ Prices in Europe expected to increase substantially throughout the next

year with more taxes on energy and development of gas fields that are more expensive to produce.

Some European countries report having trouble due to mismanaged finances and severe shortages that will increase the price of natural gas in the upcoming years.

Stansberry (2011)

Gas Pipeline Systems

Eurasia • Nord Stream Pipeline - Offshore gas pipeline from Russia to Germany.

Runs along the bottom of the Baltic Sea. Length of the sub-sea pipeline is 759 mi.

• The Azerbaijan–Georgia–Romania Interconnector (AGRI) - a proposed project to transport Azerbaijani natural gas to Romania. (Project Phase)

• Blue Stream - is a major trans-Black Sea gas pipeline that is 754 miles long and carries natural gas from Russia into Turkey.

Europe• Langeled Pipeline - Transports natural gas from Norway to the UK.

Before Nord Stream this pipeline was the longest sub-sea pipeline.• Franpipe - 520 miles long. • Vesterled - 220 miles long.• Europipe I - 420 miles long natural gas pipeline from the North Sea to

Continental Europe.• Europipe - II is a natural gas pipeline from Norway to a receiving

terminal in Germany.

Europe and Eurasia Gas Pipeline System

East European Gas Analysis (EEGA) 2008

SOUTH STREAM GAS PIPELINE•Announced on June 23, 2007•Will Carry Russian natural gas across Black Sea to Europe through Bulgaria and Romania•Carry 2.2 TCF of natural gas annually•Expected to be completed by 2015

Nabucco Gas Pipeline Rival to South Stream Pipeline project Link Middle East Gas fields to Europe

regions Will carry 1.1 TCF of natural gas annually If built, due to be completed in 2017

Shale Gas Beyond North America

Decline in North Sea production led to increased exploration: Northwest England – Discovery of a major

shale gas field that could provide the UK with 65 years of gas

Poland – Beginning modern fracturing methods in reservoirs to ease dependence on coal, begin commercial shale gas production by 2014

Ukraine – Signed giant shale gas deal with Shell to help increase production to 800 BCF annually by 2015. Reduces Russian dependence, sell excess to Europe.

Points of Interest Europe is the US ten years ago

Eurasia is big in natural gas, exports to Europe Beginning to see natural gas as a precious future

energy Beginning to explore and exploit unconventional gas

plays to ease coal and import dependence Using the latest frac technology

Just like US, is being debated and regulated