German Industry Blames Politicians for Indigenous Gas Production Decline

Germany’s gas industry said on Thursday that the decline in hydrocarbon production is due to political reasons, which also allegedly created artificial hurdles for shale gas developments. 

"While shale gas development through hydraulic fracturing is new to Germany, the technique has been used in the country since 1961 to allow gas production from low permeability, or tight sandstone reservoirs," said Ritva Westendorf Lahouse, spokeswoman for ExxonMobil's German operations. 

The German industry points its finger to politics. Several exponents advocate that politicians bowed to environmental concerns to accommodate green groups’ request to ban hydraulic fracturing in Germany. Berlin stopped expansion of the unconventional industry two years ago.

At the same time, green groups are not the only ones pushing for a ban on fracking. Last May, a trade association of brewers, warned of risks hydraulic fracturing could pose to German beer.

But the gas industry asks to go on with investments and production to reverse the production trend. 

"Currently, there is a decline in domestic production...a major share of planned investments in our industry is stymied politically," said Hartmut Pick, spokesman for the WEG oil and gas industry group, told Reuters.