The Race to Build Large-Scale Natural Gas Assets for Europe’s Energy Crisis is On

By Jordan French Jordan French has been verified by Muck Rack's editorial team
Published on January 11, 2024

Domestic energy production in Europe is not talked about enough. But now, as Russia continues to advance into Ukraine, the gatekeeper of most of Europe’s gas supply, domestic explorers are ramping up activity. The race behind the scenes is on.

2023 was a year of reckoning in the European Union, with Russia’s gas restrictions resulting in some of the largest inflationary shocks since World War II, even beating that of the oil crisis in the 1970s.

Government spending and debt soared, and the continent put ounces of additional dollars towards gas imports to help wean itself off Russia. Imports from Qatar, the US, and Australia offered much-needed breathing room last year. While some countries continue to rely on Russia for a multitude of reasons, the EU is expecting a milestone turning point later this year. They expect to completely remove themselves from Russian LNG.

If successful, gas imports will increase, as will the need for domestic energy production.

On the Crux of EU Energy Independence Is Domestic Natural Gas 

Behind the scenes, European natural gas exploration is gearing up to become a major contributor to the region’s long-term security of supply.

What cannot be guaranteed from external partners, as we’ve seen with Russia, is reliability, fair market price, and, should the war press on, supply. What can guarantee all of this is locally produced sources of gas. And through it, the EU can better control prices, which will help reverse the economic situation currently being faced. Domestic gas can also reduce the EU’s carbon footprint by up to 30%.

Europe’s Biggest Economy & Kinsau #1 Well

Germany is Europe’s largest economy, and its move away from nuclear power generation has put an increase in the need for natural gas. With its economy in shambles, it badly needs cheaper gas than what is being imported. In fact, last year, Germany was given the title “the worst-performing developed country in the world.” 

“[Germany now considers] natural gas a green energy, and that helps their manufacturing, to have another good source of natural gas,” said Deborah Sacrey, advisor to MCF Energy, in a recent interview on CEO.CA. MCF Energy (TSXV: MCF) is one of the few oil and natural gas exploration companies in Europe working to, hopefully soon, supply domestic energy to the European grid.

“Because of the war in Ukraine and the cutoff of natural gas from Russia, Germany has become much more friendly to finding hydrocarbons,” continues Sacrey. “[The Kinsau #1 well] could be 200 or 300 billion cubic feet of natural gas, which would go a long way to helping Germany. And with the price of natural gas in Germany right now, that flow rate should be very economic.” 

Kinsau #1 is a domestically located well in Germany that had been tested for almost 25 million cubic feet of gas a day in 1983. The well was never produced due to low gas prices and was abandoned. However, MCF Energy and its operator, Genexco Gas, through the use of AI and machine learning, have optimized the target bottom hole and plan to drill a twin well about 110 meters out from the original, which should provide improved results to the well drilled in 1983.

Stalemate Proxy to Bigger Action

Most are viewing the current “stalemate” between Russia and Ukraine as a proxy for bigger action anticipated to play out later this year.

Despite global optimism regarding the resolution of the EU’s energy crisis, which there has been much of, Germany’s Olaf Scholz remains cautious, asserting that “the energy crisis isn’t over yet.” 

“The race for high-quality hydrocarbon assets in Europe is on, and MCF Energy currently has two potentially significant assets in Europe’s safest jurisdictions,” says Ford Nichsolon of MCF Energy.

By Jordan French Jordan French has been verified by Muck Rack's editorial team

Journalist verified by Muck Rack verified

Jordan French is the Founder and Executive Editor of Grit Daily Group, encompassing Financial Tech Times, Smartech Daily, Transit Tomorrow, BlockTelegraph, Meditech Today, High Net Worth magazine, Luxury Miami magazine, CEO Official magazine, Luxury LA magazine, and flagship outlet, Grit Daily. The champion of live journalism, Grit Daily's team hails from ABC, CBS, CNN, Entrepreneur, Fast Company, Forbes, Fox, PopSugar, SF Chronicle, VentureBeat, Verge, Vice, and Vox. An award-winning journalist, he was on the editorial staff at TheStreet.com and a Fast 50 and Inc. 500-ranked entrepreneur with one sale. Formerly an engineer and intellectual-property attorney, his third company, BeeHex, rose to fame for its "3D printed pizza for astronauts" and is now a military contractor. A prolific investor, he's invested in 50+ early stage startups with 10+ exits through 2023.

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