Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
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British reserves of shale gas are being called a 'new North Sea' in terms of energy potential. A report from the Institute of Directors says that the economic benefits will be huge and that Britain could be 50 percent less reliant on foreign gas supplies within twenty years. VoR's Tom Spender has more. Shale gas could be a ‘new North Sea’ – meeting a third of Britain’s domestic gas demand, halving the country’s dependence on imports, boosting tax revenues and creating 74,000 jobs. That, at least, is what the Institute of Directors says in a report sponsored by the sector’s biggest company, Cuadrilla. Here’s Dan Lewis, energy policy advisor at the IoD: “The economic benefits are really quite clear because here in the UK we are faced with a scenario where our own North Sea gas supplies are going to go down which means tax revenues are going to go down. And we also have pretty unbalanced economy, most economic activity takes place in the southeast and that’s where most of the wealth is and we have declining other regional areas. “One area in particular – Lancashire – seems to be blessed with a particular shale gas formation called the Boleyn Shale, which is extremely thick, up to 6,000 feet in places. What this means, should we choose to exploit it, is that we could have something along the lines of a ‘mini-North Sea two’.” However, not everyone agrees that hydraulic fracturing, or ‘fracking’ – which sees water, gas and chemicals injected at high pressure deep underground into shale rock to release the gas – is safe or desirable. Tony Bosworth is campaigns director at Friends of the Earth. “This is an industry-funded report and it’s painting a distorted view of the benefits of shale gas in the UK. They are not mentioning that shale gas will have a major impact on local communities, it’s going to undermine efforts to tackle climate change and it’s going to do very little to tackle soaring energy bills.” Prime Minister David Cameron told a meeting of business leaders in New York this month that he was “pretty jealous” of the US, where a booming shale gas industry has seen gas prices tumble to 10-year lows. Tony Bosworth again. “We can learn from the US that yes the cost of gas has fallen but the cost of gas for domestic consumers hasn’t fallen. We can learn that it has had huge local environmental impacts and this isn’t something we want to be replicating in the UK. And the state of affairs there is very different – the geology is different, the country is much less densely-populated and they already have an established onshore drilling industry. All this means that in the view of Friends of the Earth and of many experts, what happened in the US is unlikely to be copied in the UK.” Nevertheless, the IoD’s Dan Lewis insists fracking is safe. “In terms of scientific advice, we’ve had clearance from a number of reports from the Royal Society, Department for Energy and Climate Change and a number of others that show that, if it’s properly regulated, it will be safe.” The IoD believes Lancashire could emerge as the centre of a British shale gas industry producing 1,121 billion cubic feet of gas per year, about a third of the 3,000 billion cubic feet the country currently needs. It says 400 wells would generate enough gas to power more than 10 million homes over 20 years and would see the cost of net gas imports fall from 15 billion pounds to 7.5 billion pounds by 2030. It bases these figures on an estimated recoverable shale gas potential of about 31 trillion cubic feet. The report comes as ministers are drawing up tax breaks for shale gas and the British Geological Society is poised to announce that Britain’s shale gas is bigger than previously thought. Tony Bosworth of Friends of the Earth again. “What we can’t say with any certainty at all is whether that figure is going to be backed up when further drilling takes place and how much of that gas is actually going to be extractable technologically or economically. Evidence from elsewhere in the world shows that the numbers fluctuate greatly and so what they say now might well not be the case in 10 years’ time.” However Nick Grealy, a pro-fracking consultant, believes shale gas production in the UK will begin as early as 2015. “I would only disagree with this report in that they are saying that it will really start ramping up in the 2020s. I think it will be in the late teens.” However, local opposition to shale gas is growing. In a report last month, the Energy and Climate Change Committee said residents near wells could get lower energy bills or even direct cash payments in return for dropping their opposition.
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Shale gas could be 'a new North sea' for Britain says report By Michael Millar May 22 2013, 10:41am Proactive Investors. Shale gas is controversial as it 'fracking' to gain access to it Tapping into the UK's shale gas deposits could create "a new North Sea for Britain", creating tens of thousands of jobs, according to the Institute of Directors (IoD). The lobby group's report, Getting Shale Gas Working, concludes shale gas development could also reduce British reliance on imported gas, generate significant tax revenue, and support British manufacturing. Shale gas is natural gas that is present in shale rocks, but it is a controversial source of energy as it is usually accessed through hydraulic fracturing - known as fracking. This involves drilling and injecting fluid into the ground at high pressure to fracture the rocks and release the natural gas. Anti-fracking campaigners claim the process is environmentally damaging and can cause earthquakes. Major players in the UK market include IGas Energy (LON:IGAS), Cuadrilla, and Dart Energy. The IoD report said exploiting the resource could mean investment peaking at £3.7bln a year, supporting 74,000 jobs. This could include roles for geologists and drilling specialists, construction workers, lorry drivers, cement manufacturers, water treatment experts, and people working in local retail and service industries. Corin Taylor, senior economic adviser at the IoD and author of the report, said: “Shale gas could be a new North Sea for Britain, creating tens of thousands of jobs, supporting our manufacturers and reducing gas imports." "Further exploration will be needed to assess the size of technically and commercially recoverable resources," he added. "At the same time, partnerships need to be established between industry, government and communities to ensure that development of this vital national resource benefits local people.” The report points out jobs could be created in parts of the country that need them most, with UK shale deposits focused in the North of England. Shale gas production, with tax rates of up to 62%, could generate significant tax revenue, the study says, helping to offset a predicted future tax gap of 1.25% of GDP from lower fuel duty and North Sea receipts. It also challenges claims that the environmental damage outweighs the benefits of shale gas. "According to the Committee on Climate Change, if production is well regulated, shale gas can have lower emissions than imported gas," the report says. "If shale gas supports the production of chemicals and other goods in the UK, global emissions will also be lower, as UK industry is very energy-efficient. "Natural gas has great potential as a transport fuel, particularly for lorries and buses. In the US, 19% of municipal buses run on natural gas." The study cites the planning and permitting regime, skills shortages, and local opposition as key barriers to getting production off the ground. The US is already said to have experience a 'shale revolution', with shale gas production increasing from one per cent of overall US production to 20% in 2009. There are predictions that it could reach 50% of gas production in the country by 2035. Management consultancy A.T. Kearney forecasts shale gas could account for 45% of fuel production in Europe, excluding Norway, by 2035.
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Posts: 12,284
Posts: 12,284
Posts: 12,284
Posts: 12,284
[IGAS] ExxonMobil is chatting with United Kingdom hydrocarbon producer Igas Energy about possibly taking a stake in Igas’ Bowland Shale gas project in Lancashire.
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Posts: 12,284
Posts: 12,284
[IGAS] One of the leading producers of onshore hydrocarbons in the UK, will announce preliminary results for the year ended 31 March 2013 on Wednesday, 10 July 2013.
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Posts: 12,284
Posts: 12,284
[UKOG] Only a matter of wait and see before the Government bows down to the diminishing UK resources and pushes through fracking as a way to release the abundant resource and tax revenue generating resource. No matter what public opposition says, fracking will have to happen, and happen it will as it is the only sensible way of allowing the UK to tap its own oil/gas resources and become an independent producer. http://www.lse.co.uk/general-chat-discussion.asp?page=7&TopCode=BJ2BG2GW#109828
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The UK Government will see the tax revenues (PAYE, corporation tax, oil revenues and of course VAT ), and job creation creating spenders, £ s d in old money lights kerchinging. So how can the Government of the day resist the bundles of tax revenue opportunity and take the credit for creating jobs. Fracking will have to be an option.