UK Will Miss Out if it Doesn't Allow Fracking for Shale -Prime Minister

UK Will Miss Out if it Doesnt Allow Fracking for Shale -Prime Minister
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Δευ, 12 Αυγούστου 2013 - 18:28
The U.K. will miss a "massive opportunity" to reduce energy bills and invigorate the economy if it doesn't allow companies to develop shale gas using hydraulic fracturing technology, Prime Minister David Cameron said in comments published Monday.
The U.K. will miss a "massive opportunity" to reduce energy bills and invigorate the economy if it doesn't allow companies to develop shale gas using hydraulic fracturing technology, Prime Minister David Cameron said in comments published Monday.

In a column in The Daily Telegraph, Mr. Cameron said that fracking, the injection of water and chemicals at pressure into rock to release the gas, should take place throughout the country, including the densely populated southern part of
Britain .

The prime minister's comments come as protests against exploratory drilling for oil by shale pioneer Cuadrilla Resources near the
village of Balcombe , some 30 miles south of London , entered the third week. In an unusual twist, the demonstrations have united middle-class commuters with hardened environmental activists in what appears to be a growing nationwide movement against shale gas.

It also comes as Cuadrilla Resources hopes to frack a well in northern England next year amid recent comments from a former government energy advisor that fracking for shale gas should only take place in the north of England where there are large uninhabited areas.

"It has been suggested in recent weeks that we want fracking to be confined to certain parts of
Britain . This is wrong. I want all parts of our nation to share in the benefits: north or south," he said.

The battle at Balcombe illustrates the hurdles for companies and governments seeking to replicate the North American shale boom that has lowered energy prices in the
U.S. and helped reinvigorate the economy.

Unlike in the
U.S. , development of potential shale resources in the U.K. has proceeded at a snail's pace. Supportive government policies and attractive tax incentives have bumped up against strong local opposition to fracking, keeping the U.K. in the very early stages of exploration.

And while most major energy companies are involved in the development of shale oil and gas in the
U.S. , they have so far shown little interest in the U.K. In June, Royal Dutch Shell PLC (RDSA, RDSB.LN) Chief Executive Peter Voser said shale development in the U.K. and Europe was unlikely to take off until the next decade and even then it would be on a smaller scale than in the U.S.

Mr. Cameron said if only one tenth of the estimated 1,300 trillion cubic feet of shale gas lying underneath Britain were extracted, it would still be enough to provide the U.K. with 51 years of gas supply.

"The huge benefits of shale gas outweigh any very minor change to the landscape," he said.

Local communities would also feel the benefits through a 1% share in the revenues for residents if shale gas is extracted, he said.

The
U.K. government is hoping a shale-gas boom could help shake off economic stagnation by lowering the cost of energy for businesses and consumers, and creating many jobs.

But the industry is still at a very early stage in the
U.K. There has been no commercial shale gas production and only a handful of exploration wells have been drilled, making a reliable estimate of the country's reserves difficult.

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