The UK came a step closer to commercial-scale shale gas extraction with the launch at the end of July of a new bidding process for onshore oil and gas exploration.
The move will open up large new areas of the UK for exploration but will also fuel the debate over hydraulic fracturing, or 'fracking', the technique used to extract unconventional hydrocarbons such as shale gas from deep underground.
The government is hoping that commercial-scale shale gas extraction will help to improve the UK's energy security as well as boost economic growth. Environmental campaigners, however, believe that fracking could result in water contamination and an increase in methane emissions.
The licences would give oil firms permission to begin the exploration process but not to start drilling. The government has also put in place measures to prevent drilling in sensitive areas such as National Parks and World Heritage Sites other than in exceptional circumstances.
"Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth," said Business and Energy minister Matthew Hancock. "We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy. As one of the cleanest fossil fuels, shale gas can be a key part of the UK's answer to climate change and a bridge to a much greener future."
The All Party Parliamentary Group on Unconventional Oil and Gas said in a statement that it "supports the government's expectation that the highest standards are observed by potential developers minimising the risk to surrounding areas". It added that the licensing round would test the strength of confidence that potential developers have in UK shale gas.
According to the government's regulatory roadmap for shale gas, drilling licences will only be issued to operators once permits had been obtained from the Environment Agency, the Health and Safety Executive and the Mineral Planning Authorities. Nine permits governed by 17 EU directives are required alongside planning permission from local councils, and operators will have to engage with the public at six points during the pre-consultation, planning and permitting stage.
One of the areas expected to attract the most interest is the Bowland Basin in northern England. Current estimates suggest there may be 1300 trillion cubic feet (tcf) of shale gas present in northern England alone.
Further estimates indicate that shale gas could heat the equivalent of 20 million homes and provide around a third of all of the UK's gas consumption within the next decade or so.
Sian Crampsie
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