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| UK government hands out new fracking licences | UK government hands out new fracking licences |
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| The government’s controversial attempt to establish a shale gas industry in the UK took another step forward on Thursday when it handed out new licences for onshore gas and oil exploration in 159 blocks, in a move campaigners say could open up swaths of the countryside to fracking. | The government’s controversial attempt to establish a shale gas industry in the UK took another step forward on Thursday when it handed out new licences for onshore gas and oil exploration in 159 blocks, in a move campaigners say could open up swaths of the countryside to fracking. |
| Companies must undergo a series of safety and environmental checks before they can start producing oil and gas commercially, though campaigners have maintained these are insufficiently tough. | |
| Several well-known companies won the right to explore the possibility of operating in a series of blocks around England. There were no licences awarded in Scotland, where there is a moratorium against fracking, or in Wales, before the introduction of the Wales bill. | Several well-known companies won the right to explore the possibility of operating in a series of blocks around England. There were no licences awarded in Scotland, where there is a moratorium against fracking, or in Wales, before the introduction of the Wales bill. |
| Cuadrilla, GDF Suez, Hutton Energy, UK Oil and Gas, and Aurora Energy Resources won licences; the biggest winner was Ineos, the Anglo-Swiss chemicals group, with 21 licences. | |
| The Oil and Gas Authority chief executive, Andy Samuel, said: “I am pleased that the 14th onshore round attracted strong interest and a high quality of proposed work programmes. This round enables a significant amount of the UK’s shale prospects to be taken forward to be explored and tested. | The Oil and Gas Authority chief executive, Andy Samuel, said: “I am pleased that the 14th onshore round attracted strong interest and a high quality of proposed work programmes. This round enables a significant amount of the UK’s shale prospects to be taken forward to be explored and tested. |
| “Upon acceptance of these offers, applicants will be issued with licences and will be able to begin planning their future strategies for exploration activities. These will be subject to further local planning, safety, environmental and other authorisations.” | “Upon acceptance of these offers, applicants will be issued with licences and will be able to begin planning their future strategies for exploration activities. These will be subject to further local planning, safety, environmental and other authorisations.” |
| The oil and gas industry claims the development of a successful fracking industry is essential to reduce the UK’s dependence on overseas energy. “At the beginning of this century, we were energy independent, producing enough oil and gas from the North Sea to provide for everyone in the UK,” said Ken Cronin, chief executive of United Kingdom Onshore Oil and Gas, which represents the industry. | |
| “Today we are dependent for nearly 50% of our oil and gas from overseas and that is going to rise to over 75% in the next 15 years without further onshore production,” he added. | |
| The Ineos chairman, Jim Ratcliffe, said: “We are delighted with today’s announcement. The UK government has demonstrated it is determined to move forward with this exciting new industry. This is the start of a shale gas revolution that will transform manufacturing in the UK. Ineos has the skills to safely extract the gas and we have already committed to both fully consult and to share the rewards with the local communities.” | The Ineos chairman, Jim Ratcliffe, said: “We are delighted with today’s announcement. The UK government has demonstrated it is determined to move forward with this exciting new industry. This is the start of a shale gas revolution that will transform manufacturing in the UK. Ineos has the skills to safely extract the gas and we have already committed to both fully consult and to share the rewards with the local communities.” |
| Ineos plans to meet with local communities in the regions where they have won licences in an effort to bring them on side. The group is committed to sharing 6% of its revenues, with 4% of this going to the landowner and 2% to the community. The group has committed to £400m of work in its plans. | |
| The majority of the Ineos licences are in former mining communities in the north-west, North Yorkshire and the east Midlands. But greener parts of the country are also headed for a period of exploration before it is determined whether they can profitably and safely produce oil and gas. | |
| Campaigners warned that the licences mean vast swaths of British countryside have been opened up to fracking. Greenpeace energy campaigner Hannah Martin said: “Just days after an historic agreement at the Paris climate summit to move towards a renewable energy future – the UK government’s gung ho approach to a new fossil fuel industry is bizarre and irresponsible. | |
| “The future economic benefits of fracking are often touted as a key argument for investment in shale gas drilling. But when companies like Cuadrilla are majority owned by firms based in offshore tax havens, it raises serious questions about where the profits would go.” | “The future economic benefits of fracking are often touted as a key argument for investment in shale gas drilling. But when companies like Cuadrilla are majority owned by firms based in offshore tax havens, it raises serious questions about where the profits would go.” |
| On Wednesday, MPs voted to allow fracking under Britain’s national parks, drawing accusations that the government had sneaked the measure through parliament without a proper debate. | On Wednesday, MPs voted to allow fracking under Britain’s national parks, drawing accusations that the government had sneaked the measure through parliament without a proper debate. |
| Martin added: “Even worse, the government seems to be saying it’s open season on the UK’s rural landscapes, forcing fracking on a reluctant public and on our most precious areas ... Now that fracking under national parks and other protected areas has been pushed through, it seems that nowhere is sacred.” |