Energy
and
Climate
Change
Committee
Shale
Gas
Ref
Organisation
Page
SG
01
Department
of
Energy
and
Climate
Change
2
SG
02
World
Coal
Association
13
SG
03
British
Geological
survey
22
SG
04
The
Old
Rectory
25
SG
05
Professor
Richard
Selley
29
SG
06
National
Grid
32
SG
07
IGas
Energy
33
SG
08
Cuadrilla
Resouces
Holdings
Ltd
38
SG
09
Campaign
to
Protect
Rural
England
51
SG
10
Scottish
&
Southern
Energy
53
SG
11
Scotia
Gas
Networks
55
SG
12
Tyndall
Centre
for
Climate
Change
58
SG
13
Ofgem
69
SG
14
Shell
International
Ltd
76
SG
15
The
Geological
Society
84
SG
16
Prof
Stevens
‐
Chatham
House
91
SG
17
CNG
Services
Ltd
98
SG
18
The
Co
‐
operative
Group
105
SG
19
Philip
Mitchell
114
SG
20
No
Hot
Air
118
SG
21
Friends
of
the
Earth
124
SG
22
WWF
‐
UK
127
Memorandum submitted by the Department of Energy and Climate Change(SG 1) Introduction UK Onshore Oil & Gas Activity in General
1. The onshore oil and gas industry has been operating in the UK for well over 60years and production, although currently only 1.5% of overall UK oil & gas total,nevertheless contributes usefully to UK security of supply and to the UK economy. 2. Close cooperation between the industry and the planning authorities has allowedthe industry to develop with minimal environmental impact. Alongside DECC licencesand consents, all exploration and development activities also need to be authorised bythe Health & Safety Executive . 3. Recent years have seen continued interest in onshore oil and gas activity as theresponse to the 13th Round in 2008 proved. That Round saw a good outcome with 97licences awarded in total confirming the continuing commercial attractiveness of onshore oil and gas exploration opportunities in the UK, and there was renewedinterest in coal bed methane. 4. Current estimates suggest that overall onshore potential proven and probablereserves equate to around 1.5% - 2% of the UK's overall reserves. Governmentwants to ensure that operators get the opportunity to explore and develop onshore -and licensing is the first part of this process. 5. There are currently some 28 UK onshore oil fields and 10 onshore gas fields inproduction. Overall UK onshore oilproduction is around 24,000 barrels per day(2009). BP's Wytch Farm field (Dorset) is the largest onshore oil field in Europe, and,although production peaked over a decade ago, the field still produces around 20,000barrels a day (around 83% of UK onshore oil production).
UNCONVENTIONAL GAS
6. In the UK, as elsewhere, gas (and oil) is predominantly produced from permeablerock formations such as sandstones. But there have been many attempts over theyears to develop other kinds of petroleum resources. The commercial developmentof “unconventional” gas resources has been limited until the last decade, when newproduction techniques have enabled a rapid development of shale gas. 7. Natural gas can also be extracted from coal deposits by drilling (“coal bedmethane” or CBM – also known as “coal seam gas”). The energy of coal can also beexploited by gasifying the coal in the ground (“underground coal gasification” or UCG),though the gas produced is not “natural gas” (i.e., predominantly methane), but amixture of combustible gases.
1
Conventional versus unconventional shale gas, tight gas and coal bed methane (CBM)
UK Potential & Licence Rounds
8. Although there may be significant resources of unconventional gas in the UK, thishas not so far been demonstrated. It should not be assumed that the commercialsuccess of shale gas and CBM in the US will be transferable to the different geologicaland other conditions of the UK. We are however encouraging exploration andappraisal actively for both shale gas and coal bed methane. The Coal Authority issimilarly encouraging exploration and appraisal for underground coal gasificationactively. 9. DECC aims to launch a new (14
th
) onshore round this year, and expects a fairamount of interest from the industry, for both conventional and unconventionalprospects. 10. The map below shows the location of CBM wells drilled, the three approved CBMdevelopments, the Underground Coal Gasification licences awarded by the CoalAuthority, the current onshore licences and the area under consultation which may beoffered in the 14
th
licence round.
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20110225-Public Hearings on Shale Gas - Parliament UK Written Submissions
Written submissions for the public hearings on shale gas in the UK parliament. Submissions by Shell, Cuadrilla Resources, etc.
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