Britain on Thursday boosted its estimate of shale gas resources in the north of England, renewing government hopes that new supplies could reduce growing dependence on foreign imports.
A report by the British Geological Survey (BGS) estimates there is 1,300 trillion cubic feet (tcf) of gas in rocks in the so-called Bowland shale area, which could transform the country’s energy market.
Britain consumed 2.76 tcf of gas last year, according to BP, implying that shale reserves could cover decades of domestic gas demand if all of the gas could be extracted, which is extremely unlikely. ?Today’s news from the Geological Survey confirms 1,300 tcf of (shale resources), which is double previous estimates,? chief secretary to the Treasury Danny Alexander told parliament.
Drilling to test the shale over the next few years will prove critical for the country’s infant industry, which must also reassure a sceptical public and vocal environmental lobby. Major energy companies are taking steps to get a slice of the action from the upgrade of Britain’s shale gas potential, with UK utility Centrica recently buying a stake in the country’s most advanced shale driller Cuadrilla. French oil major Total is also considering participating in UK’s nascent but potentially promising shale industry.
Previous estimates have suggested a total of some 5.3 tcf could be recoverable in Britain as a whole, implying a resource of 53 tcf assuming a 10% recovery rate.
Britain, Europe’s largest gas consuming nation, hopes to follow the US into energy independence by exploiting shale gas, but the country’s industry is at an early stage and it is not yet known whether shale gas can be produced economically.
The government is keen to reduce the country’s dependence on gas imports from countries like Norway and Qatar, as imports are due to surpass gas from domestic North Sea production by 2015.
Britain’s energy secretary Ed Davey is due to announce the estimated size of the shale resources later on Thursday. He will also outline policies aimed at stimulating investment in shale and the electricity market. Reuters
