Europe should back exploration and production of oil and gas both domestically and across neighbouring regions, if it wants a successful Energy Union, the International Association of Oil & Gas Producers (IOGP) said today.

In a new position paper on the Energy Union – released just ahead of the publication of the European Commission strategy on the issue – IOGP underlines how exploration and production of oil and gas, together with strategic policies improving market competition, can help the EU face its energy challenges.

“There is an abundance of natural gas in and around Europe: the North Sea, the Black Sea, the Caspian, the Mediterranean, the Arctic and shale gas. The EU should take the full benefit of this potential, which can bring royalties, cleaner fuel, jobs, and innovation,” said Roland Festor, IOGP’s EU affairs director.

Gas plays a vital role in securing energy supply. It can also help build an Energy Union in line with the EU climate ambitions. Switching from coal to gas could cut CO2 emissions in electricity production by roughly half. Gas power plants are also needed to balance variable renewable energy sources like wind and solar.

To live up to its ambitions, the Energy Union will need a fully-functioning internal energy market. Robust wholesale energy markets will help deliver a secure supply and trigger the necessary investment in infrastructure and innovation. Experience in Europe shows that domestic oil and gas production fosters the development of competitive, active wholesale gas markets.

“The Energy Union should focus on measures that boost competition, rather than undermine it. We would warn against common gas purchasing mechanisms, but we encourage the EU to instead consider gas release programmes[1] and promote price liberalization across member countries and well-functioning gas and power wholesale markets,” Mr. Festor said.

About IOGP

The International Association of Oil & Gas Producers (now IOGP and formerly known as OGP) is the voice of the global upstream industry. Oil and gas continue to provide a significant proportion of the world’s energy to meet growing demands for heat, light and transport.
Our Members produce more than half the world's oil and about one third of its gas. They operate in all producing regions: the Americas, Africa, Europe, the Middle East, the Caspian, Asia & Australia.
We serve industry regulators as a global partner for improving safety, environment and social performance. And also act as a unique global forum in which our Members identify and share knowledge and good practices to achieve improvements in every aspect of health, safety, the environment, security and social responsibility.