Industry body backs fracking revival
One of the UK’s leading energy bodies has welcomed the Government’s decision to lift the moratorium on fracking.
Prime Minister Liz Truss has overturned the ban – first brought in by the Conservatives in 2019 – to boost domestic energy generation.
Charles McAllister, Director of UK Onshore Oil and Gas (UKOOG) praised the U-turn “given the new geopolitical realities” with Russia squeezing supplies into Europe.
He said: “Lifting the moratorium demonstrates sensible foresight from the new Government and gives our members the chance to progress in developing natural gas from the abundant Bowland-Hodder shale formation under the North of England.”
McAllister further argued that that the development of shale gas offers community benefits including tax revenue and energy security for the UK as it targets net zero carbon emissions over the next three decades.
Truss told the House of Commons today that her Government will enable developers to seek planning permission for fracking and get gas flowing within six months.
The Prime Minister argued she was “setting a new ambition for our country”.
She said: “Far from being dependent on the global energy market and the actions of malign actors, we will make sure that the UK is a net energy exporter by 2040.”
City PM understands the decision could be finalised early next week, with a ministerial statement and the release of the British Geological Society’s scientific survey into tremors.
Fracking revived in energy security push
Fracking involves injecting a water, sand and chemicals at high pressure into boreholes deep underground to fracture rock and release shale gas.
Its revival comes after three years of uncertainty, after a moratorium being imposed on fracking in 2019 amid concerns over tremors.
The Conservative Party manifesto in December 2019 said the party “will not support fracking unless the science shows categorically it can be done safely”.
Earlier this year, the North Sea Transition Authority (NSTA) ordered Cuadrilla to plug the two remaining shale wells.
However, following Russia’s invasion of Ukraine, NSTA gave fracking a reprieve – pausing its plugging requirement – before the Government decided to conduct a scientific survey on the practice to assess whether the process could be made safer.
This was undertaken by BGS, which handed in its report to the Government earlier this summer, providing advice on the latest scientific evidence around shale gas extraction.
A decision was expected this summer, however Boris Johnson’s resignation has delayed proceedings.
UKOOG has pointed to estimates from the British Geological Survey there could be as much as 37.6tn cubic metres of shale gas under the ground.
If ten per cent was recoverable, it argues this would be enough to help meet the country’s energy needs for the next five decades.
The industry body has called for planning reforms to ensure projects can be greenlit so that the energy potential from fracking can be reached.
Firms are now drawing up plans to offer people discounts of up to 25 per cent off their energy bills in communities where shale gas is extracted, as first reported in The Daily Mail.
Following Truss’ announcement, INEOS, one of the world’s largest chemicals and energy companies, is renewing its offer to the UK Government and the new Prime Minister Liz Truss to drill a shale gas test well in the UK.
Tom Crotty, INEOS Director, said: “Shale has helped transform the energy landscape and the local communities in the US. The US is well protected against the energy crisis as it is making the most of its natural resources.”
“It can do the same here in the UK. We have promised to invest the first 6% of the value of the gas back into the local communities. It goes without saying that the Government would also have an increased tax take.”