9:194 8 US. Department of State Case No. F-2012-3007O Doc No. C05348042 Date: 10/27/2016 ASSIFICATION: UNCLASSIFIED age 1 of 3 From: Dorsehner, Jon Sent: 8/26/2011 54354 AM To: SMART Core Subject: EXXON-MOBIL REQUESTS USG HELP ON SHALE GAS INVESTMENT RELEASE PART: 34, 35, BS SBU MRN: 11 BERLIN 1394 Aug 26, 2011 I260941Z AUG 11 From: AMEMBASSY BERLIN Action: WASHDC. SECSTATE ROUTINE 13526 TAGS: ECON, ENRG, EINV, GM Captions: SENSITIVE. SIPDIS Subject: EXXON -MOBIL REQUESTS USG HELP ON SHALE GAS INVESTMENT l. (U) SUMMARY: Shale gas development in Germany appears to be grinding to a halt in response to a vigorous campaign by the environmental lobby. The situation is not helped by a new federal \variness of the fracturing technology used in shale gas extraction. Enviromnent Minister Roettgen has imposed a quasi moratorium by calling for extended studies. Exxon -Mobil. the leader in shale gas development in Germany. hopes to invest hundreds of millions of dollars, but is being stymied by the growing opposition. Exxon-Mobil is meeting with opposition groups as part of its own education theUSCLtonmkeadireeL ?mal to the German govermnent in hopes of breaking tliglggiant . r? 5 END SUMMARY. - SHALE GAS GOING NOWHERE FAST 2. - 7 7 jto determine precrsely how much?shalc'g?as can be'fou?diit Europea?d? the Best way to extract it. Lamenting that ?environmental aspects override everything." it was' Iconclusron that the Gemian press has paid far too much attention to the hazards of shale gas than .. to Europe ?5 well -established record of sustainable operating practices. determined that German "tracking? (hydraulic fracturing) operations have been closely monitored and ?coh?ri?n??d to be ?environmentally friendly," with no instances of groundwater contamination or increased seismic activity. 3. (SBU) Despite this enviable record, France has already declared a moratorium on shale gas operations. and German Environment Minister Roettgen has imposed a quasi moratorium and operations are ?stagnating.? As a result, operations have shifted to Poland, whieh?has large shalegas potential and affiendlv andpooperativc government. To provide factual informationf . . act as a neutral clearing house and direct the public-f0 laetual con?rmed that most German websites take a strong anti-tracking stance. _7 isu?s'pCCted thathrnia'ny may never ?cenunereially ?erroIr?sriartr. IREVIEWIAUTHORITY: Doni?ioim,s?hior lReviewer CLASSIFICATION: UNCLASSIFIED Page 1 of 3 UNCLASSIFIED US. Department of State Case No. Doc No. C05348042 Date: 10/27/2016 BS BS BE US. Department of State Case No. F-2012-30070 Doc No. C05348042 Date: 10/27/2015 ATION: UNCLASSIFIED EXXON REQUESTS USG ASSISTANCE 4. (SBU) Exxon-Mobil is the Ieader' in German shale gas development. An Exxon-Mobil delegation con?rmed that the company 18 running into serious problems in Germany and asked for USG assistance. Exxon-Mobil pointed out that their research con?rms that there is suf?cient shale gas in Europe to meet the continent ?5 needs for at least the next 35 years if properly explorted. and_th_at_sl_ia?le_gas_and natural gas must be exploited as_th_ey_are .. ?57ll-Iowever, the topic has become mired in 01+ controversy, with growing resrstance at the state and federal government level. ?esta B4 However. local initiatives have been i B4 rcgro?NRW?d Lower Saxony). B4 7 [NRW'I??ST?posedeni?ra?t?inim _oTt B4 exploratory drilling and tracking and Exxon-M0011 lS concerned this may 5pm over into Lower Saxony. where the company is now ?nding it more dif?cult to get required permits. The focus has now shifted to Parliament. which has begun to debate the shale gas issue EXXON ACTION PLAN 6. (SBU) Exxon-Mobil believes that shale gas is so important to the German economy that its economic bene?ts will override environmental lobby opposition. Exxon-Mobil stressed the need to engage the public and the political establishment. They pointed out that this is a huge US investment and potential market for the export of US technology. Exxon-Mobil proposed several ways in which the USG can help: --Provide guest speakers from the DOE and EPA to address in?uential German audiences with the latest facts on shale gas and fracking. --Provide the German government and public with the latest USG reports on shale gas. --Make formal representations to the German Ministries of Environment and Economics. ACTION REQUEST COMMENT 8. (SBU) At present, Germany is experiencing a wave of environmental enthusiasm with the shutdown of its nuclear power plants as only the most visible manifestation. This has led to a growing ?culture of no,? with public opposition not only to nuclear power but Carbon Capture and Storage (CCS). expanded power grids. windmills. and offshore wind farms. In the present environment. it is very easy to demonize shale gas. Opposition is unlikely to diminish unless Gennans become convinced of the economic benefits. This will largely be driven by the rising cost of energy. With the current glut in the natural gas market. Germany has little economic impetus to develop shale gas. as it can ?keep its hands clean.? while importing gas from abroad. This could change quickly, however, once gas price increases reach a ?tipping point" that makes shale gas more attractive. Given the EU-wide implications of shale gas extraction on diversitv of energy supplv BS Signature: Murphy UNCLASSIFIED Page 2 of 3 UNCLASSIFIED US. Department of State Case No. F-2012-30070 Doc No. C05348042 Date: 10/27/2016 . adment of State Case No. F-2012-30070 Doc No. 005348042 Date: 10/27/2016 50a UNCLASSIFIED a u, 0? . Jon on?: FCS:Fogarasi, John on!" a By' ECONzRodgers. John . ?mud By: Jon We: DEPT OF COMMERCE WASHINGTON DCROUTIME FRG COLLECTIVE Roe/11M: 2' EU MEMBER STATES COLLECTIVE ROUTINE $5.9 Attachments: metadata.dat Acuon Post Dlssemlnatlon Rule: Archive Copy ?m CLASSI Fl CATI ON: UNCLASSI Fl ED Page 3 of 3 UNCLASSIFIED US. Department of State Case No. F-2012-30070 Doc No. 005348042 Date: 10/27/2016