UK government issues licences allowing shale gas exploration, opening up new opportunities and challenges for local communities and energy companies alike

by Milos Bezanov

Ineos shale tripled it’s available land for shale gas exploration this week, according to an ICIS press release

21 of the 93 licences issued by the UK Oil and Gas authority went to the energy company, catapulting it into one of the largest UK shale gas players

“The government has done quite a lot to facilitate the early development of shale, I think the combination of the various legislative changes they have made to make sure the planning permission works expeditiously are enough to mean we can explore,” explains Patrick Erwin, commercial director of INEOS Shale.

Licences issued were for exploration of 159 blocks of land across the UK, covering the Midlands, the South of England, Wales, the North East and the North West

“we need to get shale gas moving… Now is the time to press ahead and get exploration underway so that we can determine how much shale gas there is and how much we can use.” says UK energy minister Andrea Leadsom

National Parks?

Despite challenges of a costly production process, recent and strong opposition to fracking and the questionable yield of UK shale, the government is determined to push ahead with the current agenda, easing a ban on fracking shale imposed in January

“ The government is ignoring evidence of the risks and the wishes of local communities, by weakening regulation and opening up more of the country to fracking,” said Rose Dickinson of Friends of the Earth.

The new rule will allow companies to frack at least 1,200 meters under National Parks, but will not permit drilling in the park. Instead, wellheads will be located outside in protected zones while companies drill into deposits horizontally.

Ineos ensures that it will share “share 6% of revenues with homeowners, landowners and communities close to its shale gas wells” in an effort to counter anti-fracking sentiment.

Land alongside the Lake District, Peak District and North York Moors, along with over a dozen towns and cities across the UK, is now open to exploration.