Is fracking the way forward?

Shale gas (natural gas stored in permeable ground rock) is found in parts of the UK e.g. Bowland
and Fylde in North Lancashire, the Wealde in Sussex and Northern Ireland. Exploration shows
that Fylde might yield £6 billion of gas per year for 30 years.

Fracking, which is the extraction process of getting shale gas, means deep wells are drilled (900m
in Sussex), and explosions are set off to break rock and release underground gas.

Fracking could potentially enable the UK to follow the example of the US and cut its reliance on
imported energy, but negative public opinion must first be overcome. The UK may have 6,000
billion cubic metres of shale gas or more, enough for 60 years at current consumption. Natural gas
plays an important role in the UK energy mix. According to the Department of Energy and Climate
Change, oil and gas provide more than 70 per cent of the UK’s total primary energy, of which 50
per cent is supplied from domestic production.

The decline in North Sea production of conventional gas has resulted in a transition from self-
sufficiency as recently as 2004 to imports in 2014 of about 50 per cent of annual gas intake. North
Sea production is expected to decline further, and industry body UK Onshore Oil and Gas
estimates that by 2030 the UK will import at least 70 per cent of its gas.

Political conditions have also threatened the supply of Russian gas and forced Europe, including
the UK, to rethink its reliance on imports. Although there has been an increase in coal-generated
power in the UK, consumption of gas remains high because of its importance for domestic heating,
industrial feedstock and heat processing. If the UK is to reduce its dependency on imported gas, it
must look to its domestic industry, and given declining conventional gas reserves, this means
serious development of unconventional gas extraction.
 Unlike the US or Australia, however, where the shale gas
industry is well established, the UK lacks data about the extent of
its technically recoverable resources and the impact of fracking
on the environment. This has fuelled media speculation about
potential pollution levels and the effect of shale gas production
on the UK economy.

Shale gas extraction differs from other types of hydrocarbon

extraction in a number of ways. The larger scale entails a greater
number of wells, many of which are often drilled more deeply.
This depth, combined with a lack of natural fissures in the rock
formation, means that extraction requires large volumes of high-pressure water and chemicals,
and the reservoirs’ low permeability at such depths means that a high number of wells is needed
to produce gas at a commercial rate. These levels of activity are unwelcome to local communities,
and in contrast to the US or Australia, the UK’s relatively small size results in dense areas of
activity.

Many local people in the areas which will be affected are very unhappy as it will ruin the local area.
An incentive package has been proposed by the industry with government support, comprising
£100,000 for the affected community and one % of revenues from production, with the local
authority keeping 100 % of the business rates collected from the exploration sites. Whether this is
sufficient to overcome negative public opinion and planning objections remains to be seen.

The UK shale gas industry faces a number of challenges, some of which are inherent to the UK
given its geology and mineral rights laws, and others which are more reflective of the European
unconventional gas industry as a whole. For now, though, the greatest hurdle is negative public
perception. Many of the environmental concerns might be assuaged through further studies, as
well as regulation and technological improvements. Provided that the industry can convince
communities in this way and offer attractive financial incentives, it should be in a strong position to
reiterate the benefits of a developed domestic industry and a reduced dependency on imports.

What is fracking?

Is it the future of energy in the UK? Explain your reasoning