GE Shale gas, a chance for the competitiveness of the Romanian and Europe

In the coming years, the cohesion funds of the European Union must be directed towards increasing the competitiveness of its member states, which are losing ground to countries with an accelerated development. Thus, the exploitation of shale gas represents a chance to increase the competitiveness of the Romanian and European economy, said Hendrik Bourgeois, Vice President European Affairs at General Electric (GE).

He explained: "US experience shows that shale gas are a cheap energy resource, which has provided the American industry with a much needed oxygen reserve for retooling and improving its competitiveness on the global markets. Exploiting shale gas in the USA has generated new jobs, has created a more competitive industry and has led to a significant drop in the price of energy.

Europe has important resources of shale gas in areas such as Poland, Romania and Bulgaria. I believe that Europe should not turn its back on such an opportunity and it should review the benefits and the drawbacks of exploiting shale gas. Sure, there are ancillary risks pertaining to such exploitation, but that's just how it is in with any other exploitation of natural resources. Europe must weigh on these risks, the environmental problems and the economic benefits. The good thing is that the technologies for exploiting shale gas have evolved considerably and environmental protection is very good".

The GE official said that in the US the shale natural gas has a price of approximately 100 dollars per cubic meters, whereas natural gas currently costs approximately 500 dollars per 1000 cubic meters in Central and Eastern Europe.

Hendrik Bourgeois considers that energy is an engine for growth in times of crisis for Romania, as well as for other countries in Central and Eastern Europe (CEE). He thinks that countries in the region must invest more in this area, in improving the grids, their regional interconnections and in diversifying the energy resources. European funds available by 2020 could be an excellent opportunity to make this transaction in the CEE.

Another strong point for Romania is the extremely attractive legislation for investors in "green" energy, which have boosted the domestic business of GE, which is a technology provider.

• Investment opportunities in Central and Eastern Europe

Mr. Bourgeois also said: "The governments and the European Union have generally taken steps which have improved the circumstances in times of crisis. There has been progress as well. Personally, I see no solution for a quick exit from the crisis. But Europe doesn't lack potential for growth. The ECE is the most attractive region, and Romania has numerous opportunities through the modernization of the energy sector, the improvement of the infrastructure and the health system. Romania is very important for GE".

GE pleads for all the countries in the ECE which are having trouble absorbing European funds to be helped improve their implementation, instead of seeing themselves punished by seeing their funding cut. Investors must receive the necessary signals from the EU so that their confidence increases in the coming period, and Europe would direct its cohesion funds towards increasing competitiveness on the global market.

• Energy, a core part in the future of Europe

In the opinion of the GE official, the benefits of the unified European market must be protected and developed. The major multinational companies present in Europe, which could determine the development of technology need big markets, a stable and transparent legal framework, facilities for investments, infrastructure and flexible regulatory framework. Hendrik Bourgeois says that the EU needs to identify the new opportunities for development and he believes that energy will play a top role. "More fiscal, economic and political integration of the EU is the solution for the crisis", he said.

• Romania needs a medium and long term energy vision

Even though it is rife with opportunities, Romania needs a medium long term vision when it comes to energy, said Izabela Kielichowska, a director at GE Energy. He thinks that Romania can find in energy an engine for economic growth for the coming years, especially since the country still has a lot to do to modernize the production units and the aging distribution grids.

The official of GE Energy says that a firm energy strategy, which will be followed by all the governments will bring Romania lots of benefits: "Investors need legislative stability and transparency, as well as flexible regulations in the energy sector".

Izabela Kielichowska considers that Romania has an advantage in its legislation which encourages investments in renewable energy, with Romania being the most attractive in the region at this moment. Furthermore, we have a huge untapped potential in the area of high-tech co-generation for the modernization and streamlining of the centralized system for the distribution of heat in major cities.