Montag, 19. September 2011

Wintershall Aims To Reduce Public Concern About Shale Drilling

FRANKFURT -(Dow Jones)- Wintershall AG, a unit of BASF SE (BAS.XE), won't pursue unconventional drilling methods for natural gas against the will of the public, Wintershall chief geologist Dieter Kaufmann said at a conference Monday.

"If a project doesn't receive social acceptance, it should be terminated," Kaufmann said.

Shale drilling, which involves pumping water through layers of stone that contain gas, a process known as fracking, has increased considerably in the U.S.

In Germany, the method has raised concerns about the contamination of ground water and seen strong public protests against it.

Social acceptance of the technology should determine the amount that shale drilling can contribute to the energy mix, Kaufmann said.

Wintershall has concessions for two blocks in North-Rhine Westphalia close to a densely populated area, which run until mid-2013, and that is how long the company has to dispel public concern about the process, he said.

"We see strong opposition already in the early phase of the project," Kaufmann said.

However, if politicians at the national level decide that gas should replace nuclear energy, then there will be a different discussion at the local level, he added. He noted that Wintershall has used fracking for four decades in Germany.

Kaufmann said more environmental studies and feasibility's studies would be needed before drilling begins, and that more institutions should be brought into the approval process. This raises the cost of using such technology , but it is a price worth paying, he added.

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