What's happening in the UK?
At the time of writing, only one company has drilled exploratory
wells in the UK, although others have expressed an interest. Click
on each to expose their profile.
Cuadrilla Resources
Cuadrilla Resources is the first shale gas
company to drill for shale gas in the UK. Their first two wells are
at Preese Hall and Grange Hill in Lancashire; drilling has begun at
Hale Hall, in the same vicinity.
The directors of the company are experienced in shale and
unconventional operations, with CEO Mark Miller having worked in
the Marcellus Shale in the North-East USA and other directors in
various other shales.
The gas that they have found is similar to gas found in the area
before: "mostly methane… [the gas] should be almost pipeline
quality when it comes to the surface"
They have licences in Lancashire, the Netherlands, Poland and
Hungary, and have started drilling wells in the Netherlands.
Our full interview with Mark Miller, CEO, will be available on
youtube.com shortly.
Mark Miller, CEO of Cuadrilla Resources; photo courtesy of
Cuadrilla Resources
Coastal Oil and Gas
Coastal Oil and Gas is a small unconventional gas exploration
company based in South Wales with a background in Coal Bed Methane.
They are now intending to explore in the Namurian age shales near
Bridgend, currently taking samples from various places in their
South Wales licences.
They have licences in South Wales, Somerset and Kent. Their
partners, Eden Energy, are an Australian multinational
"clean energy company" that is involved in extraction and
production of methane, hydrogen and other "clean fuels".
The full interview with Gerwyn Williams, Director of Coastal Oil
and Gas, will be available on youtube.com shortly.
UK Methane
UK Methane holds licences in the Mendip Hills in Somerset. It
expressed an interest in developing the shale reserves in
partnership with Eden Energy earlier this year. UK Methane is
also directed by Gerwyn Williams.
Composite Energy
Composite Energy is a Scottish CBM company that
is now part of Dart Energy Plc., an Australian CBM producer. It has
a functioning CBM project at Airth in Scotland, and is looking to
develop the shale reserves that lie beneath this site[23].
It aims to begin drilling before the end of 2011. It also has
licences in Shropshire, South Wales and near York.
IGas Energy
IGas
Energy, formerly Island Gas, has announced that it has
significant shale reserves in its licences but has announced no
plans so far[24].
Why is Shale Gas important to the UK?
As of 2010, the UK has only 252bcm (billion cubic metres) of
confirmed resources over all its sites. This may sound plenty, but
the UK's yearly demand in 2010 is around 90bcm, with a third of
that for power generation alone. As of 2004, the UK is a Net
Importer of gas (importing more than it exports); 31% of gas used
in the UK in 2010 was imported [12].
Gas activity in the UK in 2010 from source to end user. Values
in Terawatt Hours (TWh, 11TWh = 1 billion cubic metres)
The Department for Energy and Climate Change (DECC) have
suggested that the Bowland Shale Play alone could provide up to
150bcm of gas, if it proves as productive as the Barnett Shale in
Texas [1].
This could provide 10% of the UK's needs for 15 years and will
reduce dependence on foreign gas.
This is based on analogies with the US. However, these estimates
may be optimistic as:
- The shale may turn out not to be as productive as the US.
- Mineral rights are not owned by the landowner, so the
communities in development will not directly profit.
- The UK is more crowded than the US and there are no vast
expanses of land that can be built on - everywhere in the shale
plays is at least 30 miles from a large town.
- Environmental regulations are stricter and public awareness is
greater in the UK than in the US.
Conditions for shale gas in various global regions. Source: Wood
Mackenzie Global Gas Service
Prospective Gas Shales in the UK. Source: DECC, 2010, The
Unconventional Hydrocarbon Resources of Britain's Onshore Basin
The potential of shale gas in the UK has been known for decades,
but has not been economical to extract without modern technologies
and demand for gas. Many believe UK gas production has peaked so
new methods of extraction are looking very attractive[13].
Others, including the WWF believe that focusing on producing
Shale Gas in the UK will not cause a decrease in foreign imports,
but rather an increased dependence on gas as a fuel.
What is unanimously agreed on is that Shale Gas will not be a
"Game-Changer" in the UK as it has been in the US. However, rich
deposits of Gas Shale in other EU countries such as Poland and
France could contribute to gas security, as well as leading to a
decrease in gas prices.
Regional Gas Prices 1984-2011. The sharp fall in 2010 has
partially recovered in the UK and Japan, but not in the US or
Canada. This suggests oversupply from shale gas may be keeping
prices down. Graph: BP, 2011, Statistical Review of World Energy
2011
Worldwide
