Energy Economics: Europe Pays Steap Price For Opposing Fracking

When it comes to fracking, much dialog is about energy vs. environment. Not this one. NPR reports on the economic consequences of Europe's rejection of fracking. Many European companies are setting up shop in the U.S. where energy may cost 75% less.

2 minute read

March 27, 2014, 7:00 AM PDT

By Irvin Dawid


"Much of Europe opposes or even outright bans the process known as fracking, which releases natural gas from shale deposits. Analysts say the failure to develop a shale gas industry is hurting Europe's competitiveness and many companies are moving their operations to the United States," states NPR's Morning Edition host, David Green in the introduction to this radio report (listen here). "This influx of business may be good for the U.S., but it's cause for concern for European leaders."

NPR's foreign affairs correspondent, Jackie Northam traveled to Louisiana to tour a new chemical plant that is "part of an expansion by the German chemical giant BASF." Northam explains that what's driving this expansion, as well as other construction throughout Louisiana and other parts of the U.S. since 2009 "is an abundance of cheap natural gas. ...That's when the shale gas industry took off, thanks, in large part, to hydraulic fracturing or fracking."

A BASF executive at the site tells Northam that their $6 billion investment in 100 production sites across the U.S. since 2009 has "made us globally more competitive from a manufacturing chemical standpoint."

Northam speaks next with "John Larson, a vice president with IHS, a global energy research company, (who) says one of their recent studies found an estimated $100 billion will be pumped into the U.S. economy by 2020 as a result of the low energy prices. 

"I would characterize it as a slow deinvestment (sic) in Europe as companies overseas look to seize this opportunity and shift more of their investment dollars to U.S. markets. And, in fact, in Germany, for example, over the past six years, there's been a de-investment of about 52 billion euros," he states.

While NPR didn't discuss the environment in this report, we will as "high energy costs and declining economic competiveness" was the topic of a recent post on Europe. We noted that both factors contributed to "Europe Loosening Their Climate Commitments", thus increasing their carbon emissions. A high environmental price to pay on top of the economic ones for opposing advanced energy extraction technology.

Notwithstanding the economic (or climate target) consequences, "European leaders will face a hard time selling it to a public which widely opposes fracking," states Larson to end the report.

For a well-reasoned arguement to the contrary, read Daniel Gros, Director of the Centre for European Policy Studies, inEuropeanVoice.

Wednesday, March 26, 2014 in NPR Morning Edition

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

"Altadena - Not For Sale" yard sign in front of burned down house after Eaton Fire in Altadena, California in January 2025.

Half of Post-Fire Altadena Home Sales Were to Corporations

Large investors are quietly buying up dozens of properties in Altadena, California, where a devastating wildfire destroyed more than 6,000 homes in January.

July 7 - Dwell

Dense multistory residential buildings in hilly San Francisco, California.

Opinion: What San Francisco’s Proposed ‘Family Zoning’ Could Really Mean

Mayor Lurie is using ‘family zoning’ to encourage denser development and upzoning — but could the concept actually foster community and more human-scale public spaces?

July 7 - The San Francisco Standard

Blue self-driving Ford Transit van shuttle in Jacksonville, Florida.

Jacksonville Launches First Autonomous Transit Shuttle in US

A fleet of 14 fully autonomous vehicles will serve a 3.5-mile downtown Jacksonville route with 12 stops.

July 7 - Smart Cities Dive

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA