Supply & Demand

Investment needed to sustain Europe’s gas output

Declining gas output in Europe and Algeria will further boost Europe’s dependence on imported LNG and pipeline gas from countries such as Russia as early as 2023 unless greater upstream investment is made Declining gas output in Europe and Algeria will further boost Europe’s dependence on imported LNG and pipeline gas from countries such as Russia as early as 2023 unless greater upstream investment is made.
By Peter Stewart 23 January 2019 0 33865
A lack of upstream investment could leave Europe more dependent on Russian gas after 2022. (Gazprom)

Europe must boost upstream investment in gas to avoid becoming more dependent on imports. 

While Baker Hughes data shows the global rig count has recovered from its 2016 lows – rising to a monthly average of 2,211 in 2018 compared with 1,593 in 2016 – the number of rigs employed in Europe was down to an average of around 85 in 2018 compared with 96 in 2016. Upstream costs and oil prices have diverged in recent years because “companies appear to have learned to do more...