Shale gas in the UK: it’s not all about the science

The gas is there, but companies in the UK need more support to get it.

Shale gas exploitation has recently been given the go-ahead in the UK. With all the excitement, claim and counter claim, it would be easy to forget that to date not a single molecule of methane from shale gas has been produced and sold. We have drilled one shale gas well. That’s an 8½ inch borehole in Lancashire, a little like pushing a pin through the ceiling of your living room and looking through the hole. It does not tell you much about what’s in there. So will this new source of gas make a difference?

Let’s start with some numbers. Present UK annual production of natural gas is around 1.5 TCF (trillion cubic feet), but each year we use about 3.3 TCF. In the USA in the last 10 years, approximately 20,000 shale gas wells have been drilled and they now have an annual shale gas production of 3-4 TCF per year. If we use the USA as an analogy, the UK would need to drill thousands of wells to prove the reserves exist and make up just a part of the annual 1.8 TCF short-fall. Unlike wind energy, where there has been a move to develop it offshore, this is ecomomically unviable for shale gas because the rate of flow of gas for each well (i.e. revenue) is low relative to gas from other types of rock . So we cannot get away from it - researching the risks and an open and honest debate about them is an essential element in gaining the social acceptance of the technology that will be required.

Durham University have been working on this. Firstly, despite what we are often told, to date in the USA there is not one proven case of contamination of drinking water due to fracking after hundreds of thousands of fracking operations. But the contamination question led us to establish a guideline for a safe vertical separation distance of 600m between the depth of the fracking and shallower water supplies. If adopted, contamination of water supplies would be extremely unlikely.

We’re working on other issues. For instance the water used for fracking flows back to the surface in a controlled way after the operation is over. This water is contaminated with naturally occurring radioactive material, otherwise known as NORM. Even with the hundreds to thousands of wells that would be required to make an impact in the UK, the amount of radionucleides such as radium 226, is going to be a fraction of that produced by the medical sector, universities and existing oil and gas production. It would need to be cleaned and any residue safely disposed of. The technology exists – so this is not a show-stopper.

USA shale gas production took off in the last 10 years because the country has thousands of onshore drilling rigs available to carry out the drilling and helpful landowners who in some cases own the gas under their land. Both are not the case in the UK. Even if the social acceptance is forthcoming, it will take years for the industry to gear-up to drill enough wells to make an impact on the production-consumption gap. The science behind extraction of the gas reserves may in the end be secondary to issues of public trust in oil and gas companies, regulators and local and national government. The gas is there, but companies in the UK need what was recently coined a "social licence to operate". Without this the wells will not be drilled and shale gas will only ever make a tiny contribution to our economy and energy security.

Richard Davies is director of Durham Energy Institute, one of Durham University’s eight Research Institutes

But does it really? Photograph: Getty Images

Richard Davies is Director of Durham Energy Institute.

Getty
Show Hide image

The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

0800 7318496