Britain's arrival as a heavyweight in shale gas has been confirmed by a key report that revealed the nation’s reserves are far larger than first thought. According to the British Geological Survey, the unconventional hydrocarbon bounty contained in the Bowland shale area in north-west England could be somewhere in the order of 1,300 trillion cubic feet. Nobody knows exactly how much gas can actually be liberated using the controversial fracture stimulation technique, known as fracking. However, even if only 10% of those reserves can be tapped, there is enough gas below tracts of Lancashire and Yorkshire to meet Britain’s demand for the next 40 years. Advances in technology, particularly the advent of fracking and horizontal drilling, led to a revolution in the US gas industry that saw prices plummet. It is hoped the same sort of transformation could occur here with a similar impact on prices and energy security. Currently, the nation stands on a precipice as dirty coal-fired power stations are de-commissioned with nuclear and green sources of electricity unable to fill the gap.
Shale is being touted as the saviour that ensures the UK doesn’t have to rely on supplies imported from Russia, which brings with it the prospect of intermittent ‘gas-outs’. This, and the potential bonanza tax revenues generated by a shale boom, might explain why Treasury chief secretary Danny Alexander is keen to move quickly. It is reported that he will consult on a tax break and publish detailed planning guidance within the next three weeks. This, then, could pave the way for the Environment Agency to offer permits for fracking projects more quickly, and to set them to defined timetables in a further bid to encourage firms to invest. Even before today’s developments, there had been interest in the two listed companies with significant shale acreage here: AIM-quoted IGas (LON:IGAS), and Dart Energy (ASX:DTE), an Aussie firm with a Scots chief executive. In the last month IGas shares have advanced 53%, while Dart’s are up 54% as investors have raced to gain an early stake in what could be a massive shale bounty. The shares are up 5% and 13% respectively today.
Privately-owned Cuadrilla is the only company so far to have drilled for the unconventional gas here in the UK and its US$160mln deal with British Gas owner Centrica has provided a sense of the value of what’s locked into the Bowland shale. Cuadrilla, which has drilled four wells to date, believes its slice of the Bowland contains 200 trillion cubic feet of gas in place and in much higher concentrations than have been seen in the US. At a recovery rate of 10%, the gas extracted would be worth well over US$200bn at current prices.
take a look at this. It will bring a smile to your wee faces :)
Britain is on the cusp of a shale gas revolution, which can rejuvenate the flagging economy and bring cheap power to millions of people – says think-tank
Britain has just won the world's biggest energy jackpot, potentially worth a staggering £1trillion. Yesterday it emerged that the United Kingdom not only holds the biggest shale basin in the world but that Britain most likely has the biggest shale reserves worldwide.
The British Geological Survey released a study that estimates there could be 1,300 trillion cubic feet – or tcf - of shale gas trapped in the Bowland shale basin alone. In fact, the BGS's upper estimate is a staggering 2,281 tcf - almost the total estimated American shale reserve of 2,500 tcf.
Incredibly, this estimate does not include the huge shale reserves in the South of England or the Central Basin in Scotland. In fact, there are many other shale areas in Britain. And then there are Britain's gigantic offshore shale reserves. According to the British Geological Survey, the UK's offshore shale reserves could be five to ten times as high as onshore.
Read the whole article from the lnik below. quite amazing imo :)
shog44 - Not an interesting article written by an arts graduate, not an engineer. Here in Lancashire, we have huge tracts of unused salt mash and very shallow sea - there is nothing to prevent off-shore fracking. We even have a ready made storage facility in the form of the Thornton salt mines, already proposed for this purpose. Getting CH4 out of the ground with minimal effects on the environment or the local population is a solvable engineering problem, something that the likes of Jim Armitage seem incapable of understanding.
I suspect might regret not getting more at these prices,missed oppertunity to get in early on a new boom in UK energy I live in walking distance of britains first ever oil well at Tibshelf N E Derbyshire and we are sat on oil gas and coal,perhaps this new industry can regenerate former mining areas after the closure of the mines.
with all the good news and govt backing the SP should be a lot higher but it seems to be pumped up in early trading then pulled down by ii selling off cheap shares - however, a 3% rise each day would be excellent IMO. Regards all and GL.
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