U.K. Offers New Onshore Blocks for Shale Development
August 18 2015 - 12:20PM
Dow Jones News
LONDON—The U.K. government said Tuesday that it was offering new
onshore blocks to explore for shale gas to a range of companies
that include oil giant Total SA and utility GDF Suez SA as Britain
steps up efforts to kick-start a shale industry and unlock
potential reserves.
The U.K., which is believed to hold significant shale gas
reserves, is one of the few countries in Europe to allow fracking,
but progress has been slow and the industry is still at a very
early stage.
Just last week, the government said it would fast-track planning
applications to explore for shale gas. Conservative Prime Minister
David Cameron is eager to replicate the U.S. fracking boom that has
unleashed a surge in oil and gas production there.
Mr. Cameron's government has said a domestic shale gas industry
will help to offset declining production in the North Sea and
reduce natural gas imports.
But while hydraulic fracturing in the U.S. has developed
quickly, outside North America, the controversial technique of
blasting underground rock with a mixture of water, sand and
chemicals has faced opposition from some environmental groups and
local residents.
In the U.K., efforts by small companies to explore for shale gas
have been stymied by local opposition and long local government
reviews. So far only one well has been fracked.
The government said Tuesday that it will award the licenses for
27 oil and gas blocks to the companies later this year.
Along with Total and GDF Suez, tiny shale explorers IGas Energy
PLC, Egdon Resources and Celtique Energie Petroleum Ltd were among
the winners as was Swiss chemicals giant Ineos and Cuadrilla
Resources, which has been spearheading the U.K.'s fracking
drive.
A second group of 132 onshore oil and gas blocks will be subject
to further consultation to see if they are suitable under
conservation of habitat and species regulations.
The licenses for all offered blocks will be awarded later this
year.
The U.S. Energy Information Administration has estimated Britain
could have 26 trillion cubic feet of shale gas deposits, or about
eight times the country's current annual gas consumption.
Melissa Stark, global managing director for new energy at
consultancy Accenture said that even in the most favorable
circumstances, large scale development is at least five to 10 years
away.
Write to Selina Williams at selina.williams@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 18, 2015 12:05 ET (16:05 GMT)
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