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.

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We still have time to change our minds on Brexit

The British people will soon find they have been misled. 

On the radio on 29 March 2017, another "independence day" for rejoicing Brexiteers, former SNP leader Alex Salmond and former Ukip leader Nigel Farage battled hard over the ramifications of Brexit. Here are two people who could be responsible for the break-up of the United Kingdom. Farage said it was a day we were getting our country back.

Yet let alone getting our country back, we could be losing our country. And what is so frustrating is that not only have we always had our country by being part of the European Union, but we have had the best of both worlds.

It is Philip Hammond who said: “We cannot cherry pick, we cannot have our cake and eat it too”. The irony is that we have had our cake and eaten it, too.

We are not in Schengen, we are not in the euro and we make the laws that affect our daily lives in Westminster – not in Europe – be it our taxes, be it our planning laws, be it business rates, be it tax credits, be it benefits or welfare, be it healthcare. We measure our roads in miles because we choose to and we pour our beer in pints because we choose to. We have not been part of any move towards further integration and an EU super-state, let alone the EU army.

Since the formation of the EU, Britain has had the highest cumulative GDP growth of any country in the EU – 62 per cent, compared with Germany at 35 per cent. We have done well out of being part of the EU. What we have embarked on in the form of Brexit is utter folly.

The triggering of Article 50 now is a self-imposed deadline by the Prime Minister for purely political reasons. She wants to fix the two-year process to end by March 2019 well in time to go into the election in 2020, with the negotiations completed.

There is nothing more or less to this timing. People need to wake up to this. Why else would she trigger Article 50 before the French and German elections, when we know Europe’s attention will be elsewhere?

We are going to waste six months of those two years, all because Prime Minister Theresa May hopes the negotiations are complete before her term comes to an end. I can guarantee that the British people will soon become aware of this plot. The Emperor has no clothes.

Reading through the letter that has been delivered to the EU and listening to the Prime Minister’s statement in Parliament today amounted to reading and listening to pure platitudes and, quite frankly, hot air. It recalls the meaningless phrase, "Brexit means Brexit".

What the letter and the statement very clearly outlined is how complex the negotiations are going to be over the next two years. In fact, they admit that it is unlikely that they are going to be able to conclude negotiations within the two-year period set aside.

That is not the only way in which the British people have been misled. The Conservative party manifesto clearly stated that staying in the single market was a priority. Now the Prime Minister has very clearly stated in her Lancaster House speech, and in Parliament on 29 March that we are not going to be staying in the single market.

Had the British people been told this by the Leave campaign, I can guarantee many people would not have voted to leave.

Had British businesses been consulted, British businesses unanimously – small, medium and large – would have said they appreciate and benefit from the single market, the free movement of goods and services, the movement of people, the three million people from the EU that work in the UK, who we need. We have an unemployment rate of under 5 per cent – what would we do without these 3m people?

Furthermore, this country is one of the leaders in the world in financial services, which benefits from being able to operate freely in the European Union and our businesses benefit from that as a result. We benefit from exporting, tariff-free, to every EU country. That is now in jeopardy as well.

The Prime Minister’s letter to the EU talks with bravado about our demands for a fair negotiation, when we in Britain are in the very weakest position to negotiate. We are just one country up against 27 countries, the European Commission and the European Council and the European Parliament. India, the US and the rest of the world do not want us to leave the European Union.

The Prime Minister’s letter of notice already talks of transitional deals beyond the two years. No country, no business and no economy likes uncertainty for such a prolonged period. This letter not just prolongs but accentuates the uncertainty that the UK is going to face in the coming years.

Britain is one of the three largest recipients of inward investment in the world and our economy depends on inward investment. Since the referendum, the pound has fallen 20 per cent. That is a clear signal from the world, saying, "We do not like this uncertainty and we do not like Brexit."

Though the Prime Minister said there is it no turning back, if we come to our senses we will not leave the EU. Article 50 is revocable. At any time from today we can decide we want to stay on.

That is for the benefit of the British economy, for keeping the United Kingdom "United", and for Europe as a whole – let alone the global economy.

Lord Bilimoria is the founder and chairman of Cobra Beer, Chancellor of the University of Birmingham and the founding Chairman of the UK-India Business Council.