U.K. Shale Gas Could Eliminate Gas Imports

---

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K.'s shale gas potential has been dramatically increased by new research that could see the country saving up to £8 billion ($10.5 billion) a year in gas imports by the early 2030s.

Industry body U.K. Onshore Oil and Gas (UKOOG), increased the estimate of well productivity to 5.5 billion cubic feet (Bcf) per lateral well, a significant rise of 72% from the last estimate in 2013 by the Institute of Directors lobby group. The new estimates put the shale potential with the world's leading shale gas market, the U.S. The 5.5-Bcf estimate matches the current U.S. average, while the report's high-end scenario of 8 Bcf is in line with the best performing U.S. shale basin, Marcellus.

The U.K.'s shale gas resources are considerable, with the British Geological Survey estimating that the Bowland-Hodder (Carboniferous) shale gas play in the North of England ("Bowland Shale") contains 1,329 trillion cubic feet (Tcf) of shale gas in place. The U.K.'s annual consumption of gas is around 2.5 Tcf, and according to the latest figures from UKOOG, "just 10% of the gas in place in the Bowland Shale would be sufficient for 50 years of U.K. gas consumption." The country currently relies on gas imports for about half of its demand.

Shale gas and the associated fracking process are highly controversial topics in the U.K. and are strongly protested by environmental and local lobbying groups. The market is in its infancy with only a couple of pilot wells in operation to date. "This is a very significant upgrade to previous estimates," explained Ken Cronin, chief executive of U.K. Onshore Oil and Gas. "The industry to date has invested between £400 million ($526 million) and £500 million ($658 million) in exploring for shale gas in the U.K., creating local jobs and supply chain opportunities. The U.K. spends £7 billion ($9.2 billion) at present per year on importing gas into this country, generating next to nothing by way of U.K. benefits, leaving us less secure and creating a greater environmental impact as gas is shipped and piped in across oceans and continents."

He added: "Last year the U.K.'s LNG [liquefied natural gas] imports grew by 20%, with Russian LNG showing the largest increase, at nearly 20 times the 2017 figures--the equivalent to supplying 1.6 million U.K. homes. Given these new projections, it now makes absolutely no sense to ignore our huge resource of homegrown gas."

Last month, Industrial Info reported that shale gas company Cuadrilla Resources (Lichfield, England) has stated that flow-testing of the U.K.'s first-ever horizontal shale oil and gas exploration well confirmed a "rich reservoir" of recoverable, high-quality natural gas present. The well, drilled through the shale rock more than 7,500 feet beneath the Preston New Road exploration site in Lancashire, revealed "excellent results." For additional information, see February 19, 2019, article - 'Rich Reservoir' of Shale Gas Discovered in the U.K..

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.