Leading the "Shale Charge": UK's Cameron Tells EU Not to Stifle Fracking
In late October, British Prime Minister David Cameron told the media that Britain must simplify regulations governing fracking in order to accelerate the development of shale gas that has transformed the NAM market.
He said at the time, "On fracking, we do need to take action across the board to help enable this technology to go ahead...There is a worry people are going to have to go through so many different permits in order to start fracking that they simply won't bother, so we need a simplified system."
Cameron is a notable exception when it comes to the attitudes of a majority of Western leaders regarding fracking and shale gas exploration. In the UK, it can arguably be said that the Prime Minister is the titular head of the "shale-push."
Prime Minister David Cameron; Source: telegraph.co.uk
On Tuesday, Cameron extended his advocacy of shale exploration beyond the UK to broader Europe. He warned the European Commission not to propose EU-wide legislation to regulate the nascent fracking industry, saying that such a gesture could beget uncertainty and inhibit investment.
Cameron is vigorously seeking to access Britain's copious shale gas resources in order to strengthen the nation's energy security as its North Sea oil reserves decline.
In January, The European Commission is scheduled to publish a package of proposals related to its 2030 environment and energy strategy. These are anticipated to address shale gas, but it is not yet clear if they will be firm legislative proposals or non-binding guidance.
In a letter to European Commission President Jose Manuel Barroso released on Tuesday, Prime Minister Cameron warned that the EU could threaten investment in UK shale gas extraction if it opted to legislate.
Cameron said in the letter, "I am not in favour of new legislation where the lengthy timeframes and significant uncertainty involved are major causes for concern...The industry in the UK has told us that new EU legislation would immediately delay imminent investment."
Cameron's attempts to elicit broader support- both in the UK and in Europe- for shale gas extraction, and the concomitant technologies needed to make this possible, have borne fruit in terms of public opinion.
A recent poll commissioned by Cuadrilla Resources indicates that 57% of the respondents told pollsters they support shale gas exploration in the Bowland shale.
Located in Lancashire in northwest England, the Bowland Shale is a mile-thick, compared to U.S. shale plays of 300 ft to 500 ft of thickness. In a study conducted last summer, IGas estimated that 102 Tcf of shale gas likely lies in northwest England. This amount could render the UK self-sufficient for at least 15 years.
Source: Dart Gas
The BGS recently completed an assessment of a large portion of the north of England, estimating that the area holds 1,300 Tcf of deposits.
And the Bowland Shale Play is not the only area believed to be copious with shale gas. A couple of weeks ago, the British Geological Survey's director of science and technology confirmed that the agency will commence work next year on estimating the size of shale gas deposits between Edinburgh and Glasgow, in southeast England.
The BGS's shale assessment area in north England
Moreover, oil companies are beginning to express interest in exploring for shale in the UK.
In October, France's Total announced that it was in talks to take a stake in a UK project and is also exploring the possibility of bidding in next year's onshore licensing round.
And in November, GDF Suez inked an agreement with the UK's Dart Energy to explore the East Midlands and Cheshire for shale gas. The farm-out agreement pertains to 13 licenses in the eastern and western parts of the aforementioned Bowland Basin.
Dart will receive $12 million from GDF as part of the deal. GDF will in turn meet Dart's share of costs related to exploration within the license area up to a total of $27 million.
The funding will facilitate a 3-year appraisal and unconventional exploration program. This is inclusive of the drilling of up to 4 shale gas exploration wells in various areas of the Bowland Basin as well as 10 CMB exploration wells. The deal is expected to be completed by the end of the year.
Thus Prime Minister Cameron is leading the "shale push" in the UK and has now widened his advocacy of shale gas exploration (although tacitly so) to broader Europe. It will be curious to observe whose eyes are opened and ears unstopped to the benefits fracking as a result of Cameron's
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