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Energy firm says UK's shale gas resources could be huge
sheffield_lad
Posts: 1,990 Forumite
http://www.bbc.co.uk/news/business-22748915
One of the energy firms hoping to exploit the UK's resources of shale gas says it may be sitting on significantly more gas than previously thought.
UK firm IGas says there may be up to 170 trillion cubic feet of gas in the areas it is licensed to explore in northern England.
Shale gas is extracted by fracking - pumping water and sand at high pressure into rock to release gas within it.
Critics say it may cause earth tremors and want investment in green energy.
Fracking has revolutionised the US energy market and the energy industry has hopes for a similar transformation in the UK.
'Benefit communities'
IGas is one of the companies granted a licence by UK authorities to explore parts of the country believed to contain large resources of shale gas.
The company's licences cover an area of 300 sq miles across Cheshire.
It had previously said it had about nine trillion cubic feet of shale gas. It now estimates that the volume of "gas initially in place" could range from 15.1 trillion cubic feet to 172.3 trillion cubic feet - nearly 20 times more.
The UK's annual gas consumption is currently about 3 trillion cubic feet.
"The licences have a very significant shale gas resource with the potential to transform the company and materially benefit the communities in which we operate," said IGas chief executive Andrew Austin.
Continue reading the main story “Start Quote
"Our estimates for our area alone could mean that the UK would not have to import gas for a period of 10 to 15 years".
Gas and oil discoveries in shale rock in the US have led to a boom in gas and oil production there recent years, and has also dramatically reduced gas prices.
The International Energy Agency (IEA) says the US will overtake Russia as the world's biggest gas producer by 2015, and Saudi Arabia as the world's biggest oil producer by about 2020.
The shale gas industry is in its infancy in the UK. But supporters believe it could play a key role in our future energy supplies.
A report by the British Geological Survey for the Department of Energy and Climate Change is due to give an updated assessment of how much gas there is in the Bowland Shale in the North West of England in the coming weeks.
Industry sources have told the BBC they expect the BGS assessment to result in a "very big number".
'Dirty and unnecessary'
Energy firm Cuadrilla, which has drilled wells near Blackpool in Lancashire, says it has 200 trillion cubic feet of gas in its licence area of the Bowland Shale.
That suggest the overall number for the region could be in excess of 400-500 trillion cubic feet in total.
"It's not unreasonable to assume that there could be as much as 500 trillion cubic feet in the Bowland shale across the North West," said Mr Austin.
"Even if the industry can only extract a fraction of that, combined with North Sea reserves, it could make the UK self sufficient in gas for decades to come."
But it remains unclear how much of the gas will be economically extractable. The industry says that will become clearer once a significant number of wells have been drilled and gas flow rates tested.
In a report published earlier this year, the Energy and Climate Change Committee also cast doubt on the value of shale gas extraction.
Although it said shale gas in the UK could help secure domestic energy supplies, it also warned that it may not bring down prices.
The process of fracking also remains controversial - it has been blamed for causing earth tremors and there are concerns about water contamination and the large volumes of water required.
Environmental group Friends of the Earth has described fracking as "dirty and unnecessary", arguing that the UK should instead focus on investing in renewable energy.
IGas plans to carry out exploratory drilling, not including fracking, in Cheshire at the end of the year.
One of the energy firms hoping to exploit the UK's resources of shale gas says it may be sitting on significantly more gas than previously thought.
UK firm IGas says there may be up to 170 trillion cubic feet of gas in the areas it is licensed to explore in northern England.
Shale gas is extracted by fracking - pumping water and sand at high pressure into rock to release gas within it.
Critics say it may cause earth tremors and want investment in green energy.
Fracking has revolutionised the US energy market and the energy industry has hopes for a similar transformation in the UK.
'Benefit communities'
IGas is one of the companies granted a licence by UK authorities to explore parts of the country believed to contain large resources of shale gas.
The company's licences cover an area of 300 sq miles across Cheshire.
It had previously said it had about nine trillion cubic feet of shale gas. It now estimates that the volume of "gas initially in place" could range from 15.1 trillion cubic feet to 172.3 trillion cubic feet - nearly 20 times more.
The UK's annual gas consumption is currently about 3 trillion cubic feet.
"The licences have a very significant shale gas resource with the potential to transform the company and materially benefit the communities in which we operate," said IGas chief executive Andrew Austin.
Continue reading the main story “Start Quote
Combined with North Sea reserves, [Shale gas] could make the UK self sufficient in gas for decades to come”
End Quote Andrew Austin IGas chief executive"Our estimates for our area alone could mean that the UK would not have to import gas for a period of 10 to 15 years".
Gas and oil discoveries in shale rock in the US have led to a boom in gas and oil production there recent years, and has also dramatically reduced gas prices.
The International Energy Agency (IEA) says the US will overtake Russia as the world's biggest gas producer by 2015, and Saudi Arabia as the world's biggest oil producer by about 2020.
The shale gas industry is in its infancy in the UK. But supporters believe it could play a key role in our future energy supplies.
A report by the British Geological Survey for the Department of Energy and Climate Change is due to give an updated assessment of how much gas there is in the Bowland Shale in the North West of England in the coming weeks.
Industry sources have told the BBC they expect the BGS assessment to result in a "very big number".
'Dirty and unnecessary'
Energy firm Cuadrilla, which has drilled wells near Blackpool in Lancashire, says it has 200 trillion cubic feet of gas in its licence area of the Bowland Shale.
That suggest the overall number for the region could be in excess of 400-500 trillion cubic feet in total.
"It's not unreasonable to assume that there could be as much as 500 trillion cubic feet in the Bowland shale across the North West," said Mr Austin.
"Even if the industry can only extract a fraction of that, combined with North Sea reserves, it could make the UK self sufficient in gas for decades to come."
But it remains unclear how much of the gas will be economically extractable. The industry says that will become clearer once a significant number of wells have been drilled and gas flow rates tested.
In a report published earlier this year, the Energy and Climate Change Committee also cast doubt on the value of shale gas extraction.
Although it said shale gas in the UK could help secure domestic energy supplies, it also warned that it may not bring down prices.
The process of fracking also remains controversial - it has been blamed for causing earth tremors and there are concerns about water contamination and the large volumes of water required.
Environmental group Friends of the Earth has described fracking as "dirty and unnecessary", arguing that the UK should instead focus on investing in renewable energy.
IGas plans to carry out exploratory drilling, not including fracking, in Cheshire at the end of the year.
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Comments
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sheffield_lad wrote: »http://www.bbc.co.uk/news/business-22748915
Environmental group Friends of the Earth has described fracking as "dirty and unnecessary", arguing that the UK should instead focus on investing in renewable energy.
Dirty, yes. Unnecessary? Unless they can figure out a way to turn windmills using the hot air generated by outraged environmentalists, then we can't afford to ignore this potential energy source.
I am sure that in years to come we will find more efficient ways of utilising renewable energy sources. Until that day comes, however, we can't turn our backs on fossil fuels."When the people fear the government there is tyranny, when the government fears the people there is liberty." - Thomas Jefferson0 -
Just a word to the wise.
Traditionally, scams involving mining companies overstating reserves came out of Canada. I was reading a piece today written by someone trying to sell Chinese share funds saying that Chinese accounting/auditing was 'improving' (i.e. dodgy as hell).
IGas is a Sino-Canadian company.
Sino Forest (Google it) is also a Chinese/Canadian company although I draw no parallel between the 2 they are both acting under similar governance standards potentially.0 -
There are a lot of numbers flying around regarding the potential for UK shale gas. The Telegraph ran a piece last month that claimed that "Industry insiders say the BGS could report between 1,200 trillion and 1,800 trillion cubic feet of gas under the UK". However (as far as I can establish) that updated report has yet to see the light of day, and the existing words of wisdom from the BGS are that the "UK shale gas reserve potential could be as large as 150 bcm (5.3 TCF)", a much smaller number.
And of course, the obvious point is that the size of the 'potential' reserve almost doesn't matter; what matters is can you get it out, and can you get it out at a cost that makes it worthwhile?
http://www.telegraph.co.uk/earth/environment/9975652/Shale-gas-could-heat-all-homes-for-100-years.html
https://www.og.decc.gov.uk/UKpromote/onshore_paper/UK_onshore_shalegas.pdf0 -
MacMickster wrote: »Dirty, yes. Unnecessary? Unless they can figure out a way to turn windmills using the hot air generated by outraged environmentalists, then we can't afford to ignore this potential energy source.
I am sure that in years to come we will find more efficient ways of utilising renewable energy sources. Until that day comes, however, we can't turn our backs on fossil fuels.
What is really annoying is that this source of 'free energy' (wind and tidal etc) is often quite remote from where people actually choose to live. (People can be so selfish).
When you build miles and miles of pylons to cart this energy across Monmouthshire, as an example, then the protesters are out in force again, complaining about our spoiling of the countryside!
...you just can't win
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What is really annoying is that this source of 'free energy' (wind and tidal etc) is often quite remote from where people actually choose to live. (People can be so selfish).
When you build miles and miles of pylons to cart this energy across Monmouthshire, as an example, then the protesters are out in force again, complaining about our spoiling of the countryside!
...you just can't win
They could replace the two nuclear reactors in the south west by putting tidal turbines in across a estuary barrage across the Severn. Would generate 40% of the UKs entire domestic energy requirement in the UK apparently.0 -
They could replace the two nuclear reactors in the south west by putting tidal turbines in across a estuary barrage across the Severn. Would generate 40% of the UKs entire domestic energy requirement in the UK apparently.
Think of the implications for all those birds and fishes."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
What is really annoying is that this source of 'free energy' (wind and tidal etc) is often quite remote from where people actually choose to live. (People can be so selfish).
When you build miles and miles of pylons to cart this energy across Monmouthshire, as an example, then the protesters are out in force again, complaining about our spoiling of the countryside!
...you just can't win
They seemd capable of burying a massive pipeline from Milford Haven across Wales (well at least Pembrokeshire) to deliver LPG from Tankers.
I know buried power lines get hot and are therefore less efficient."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
And of course, the obvious point is that the size of the 'potential' reserve almost doesn't matter; what matters is can you get it out, and can you get it out at a cost that makes it worthwhile?
/QUOTE]
That is the key bit.
Something tells me it won't be cheap, whatever they mange to extract. Especially if they do take of the environment at the same time."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
What many do not know is that most sources of 'free energy' (solar, wind and tidal etc) requires lots of silver to get the best efficiency. You can use substitutes like copper in place of silver but it is no where near as good.
The great thing about both the UK and Japan is that they are island nations with strong tidal movements around them every day. It makes sence to derive power from the sun why not generate power from the moon too? As the moon revolves around the Earth its gravitational pull is pulling the water with it, causing the tides to come in and go out.
I also hear in the UK they could replace the two nuclear reactors in the south west by putting tidal turbines in across a estuary barrage across the Severn. There already two huge bridges going across I have sailed under them. I know there is enormous tidal energy going under these bridges every day, why not use it? Instead of nuclear power which creates harmful waste that needs to be dumped into our mother Earth. It is said this would generate 40% of the UKs entire domestic energy requirement in the UK apparently. But again this would require a lot of silver and this a problem because the demand for the last of the available silver is larger than the available supply.0 -
What many do not know is that most sources of 'free energy' (solar, wind and tidal etc) requires lots of silver to get the best efficiency. You can use substitutes like copper in place of silver but it is no where near as good.
The great thing about both the UK and Japan is that they are island nations with strong tidal movements around them every day. It makes sence to derive power from the sun why not generate power from the moon too? As the moon revolves around the Earth its gravitational pull is pulling the water with it, causing the tides to come in and go out.
I also hear in the UK they could replace the two nuclear reactors in the south west by putting tidal turbines in across a estuary barrage across the Severn. There already two huge bridges going across I have sailed under them. I know there is enormous tidal energy going under these bridges every day, why not use it? Instead of nuclear power which creates harmful waste that needs to be dumped into our mother Earth. It is said this would generate 40% of the UKs entire domestic energy requirement in the UK apparently. But again this would require a lot of silver and this a problem because the demand for the last of the available silver is larger than the available supply.
Yes we know, MrTroll, buy silver, it only goes up.
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