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No shale gas potential in Weald basin, concludes British Geological Survey No shale gas potential in Weald basin, concludes British Geological Survey
(35 minutes later)
Government hopes that Britain can emulate the US with a shale gas revolution have been dashed with a long-awaited report unexpectedly concluding there is no potential in the Weald region of southern England. Government hopes that Britain can emulate the US with a shale gas revolution have been undermined with a long-awaited report unexpectedly concluding there is no potential in the Weald region of southern England.
Michael Fallon, the energy minister, insisted he was neither "disappointed nor happy" by the findings from the British Geological Survey (BGS) and denied the government had "hyped" UK potential. Michael Fallon, the energy minister, insisted he was neither "disappointed nor happy" at the findings from the British Geological Survey (BGS) and denied the government had "hyped" UK potential.
He preferred to focus on more positive BGS findings that there could be 4.4bn barrels of oil in the shale rocks of an area from Salisbury to Tonbridge Wells – although recoverable reserves are likely to be a fraction of this. He preferred to focus on more positive BGS findings that there could be 4.4bn barrels of oil in the shale rocks of an area from Salisbury to Tunbridge Wells – though recoverable reserves are likely to be a fraction of this.
"Britain needs more home-grown energy. Shale development will bring jobs and business opportunities. We are keen for shale and geothermal exploration to go ahead while protecting residents through the robust regulation that is in place," said Fallon."Britain needs more home-grown energy. Shale development will bring jobs and business opportunities. We are keen for shale and geothermal exploration to go ahead while protecting residents through the robust regulation that is in place," said Fallon.
The government is now proposing, in a 12-week consultation starting on Friday, to introduce legislation that would bypass the law of trespass when it comes to land below 300 metres and for industry to hand out a voluntary community payment of £20,000 for each lateral well drilled. Environmental campaigners have been using landowners rights to halt fracking projects.The government is now proposing, in a 12-week consultation starting on Friday, to introduce legislation that would bypass the law of trespass when it comes to land below 300 metres and for industry to hand out a voluntary community payment of £20,000 for each lateral well drilled. Environmental campaigners have been using landowners rights to halt fracking projects.
But the BGS conclusion that "there is unlikely to be any shale gas potential" in the Weald area is a major blow to ministers' wider hopes that shale could be found from the north to the south of the country.But the BGS conclusion that "there is unlikely to be any shale gas potential" in the Weald area is a major blow to ministers' wider hopes that shale could be found from the north to the south of the country.
A first report from the geological agency last June covering the Bowland-Hodder shales under 11 counties in the north estimated there could be 40 trillion cubic metres of gas in the ground.A first report from the geological agency last June covering the Bowland-Hodder shales under 11 counties in the north estimated there could be 40 trillion cubic metres of gas in the ground.
Enormous excitement has been generated around the potential for creating thousands of jobs and possibly helping to lower soaring gas prices that have upset consumers.Enormous excitement has been generated around the potential for creating thousands of jobs and possibly helping to lower soaring gas prices that have upset consumers.
Asked at a briefing to launch the latest report and consultation paper whether shale energy had been hyped in Britain, Fallon replied: "Not by the government."Asked at a briefing to launch the latest report and consultation paper whether shale energy had been hyped in Britain, Fallon replied: "Not by the government."
The oil industry has known since the second world war about the traditional oil reserves in the Weald area and 13 wells are currently in production.The oil industry has known since the second world war about the traditional oil reserves in the Weald area and 13 wells are currently in production.
The use of new technology such as using hydraulic fracturing to break up the rock and horizontal wells to access the shale oil could mean extra volumes but the BGS said more drilling and testing to "narrow down that (4.4bn barrels) figure". Even then the amount of shale oil brought to the surface may be only "a few percent" of any recoverable reserves.The use of new technology such as using hydraulic fracturing to break up the rock and horizontal wells to access the shale oil could mean extra volumes but the BGS said more drilling and testing to "narrow down that (4.4bn barrels) figure". Even then the amount of shale oil brought to the surface may be only "a few percent" of any recoverable reserves.
Greenpeace argued the whole government project was misguided. "Stripping away people's property rights while trying to kick off a Klondike-style shale oil rush in the home counties is a highly toxic policy mix. The Tories have just taken a bruising at the local elections – fracking will only make things worse for Tory MPs in the party's heartlands at next year's vote," said Lawrence Carter, the group's UK energy campaigner.Greenpeace argued the whole government project was misguided. "Stripping away people's property rights while trying to kick off a Klondike-style shale oil rush in the home counties is a highly toxic policy mix. The Tories have just taken a bruising at the local elections – fracking will only make things worse for Tory MPs in the party's heartlands at next year's vote," said Lawrence Carter, the group's UK energy campaigner.
"Ministers are sticking two fingers up at the three-quarters of Britain who are against giving frackers a free rein to drill under people's homes. And they're also ignoring UN scientists who have warned we must keep two thirds of known fossil fuels in the ground if we are to head off catastrophic climate change.""Ministers are sticking two fingers up at the three-quarters of Britain who are against giving frackers a free rein to drill under people's homes. And they're also ignoring UN scientists who have warned we must keep two thirds of known fossil fuels in the ground if we are to head off catastrophic climate change."
But a business lobby group said the government should not miss out on this opportunity although it warned that investment in hydrocarbon projects was in short supply.But a business lobby group said the government should not miss out on this opportunity although it warned that investment in hydrocarbon projects was in short supply.
"It's clear that there are significant reserves of shale gas and oil in the UK, and these new estimates must prompt the government to act quickly to unleash the fracking industry. The only way we will know exactly how much gas and oil can be recovered is by allowing more exploration," said Dan Lewis, energy policy advisor at the Institute of Directors. "It's clear that there are significant reserves of shale gas and oil in the UK, and these new estimates must prompt the government to act quickly to unleash the fracking industry. The only way we will know exactly how much gas and oil can be recovered is by allowing more exploration," said Dan Lewis, energy policy adviser at the Institute of Directors.