FOCUS 24 SPOTLIGHT
ON THE GLOBAL SHALE MARKET
interview with PROFESSOR PAUL STEVENS DISTINGUISHED FELLOW, CHATHAM HOUSE
The success of shale gas extraction in the US has put shale gas under the spotlight. However, the UK faces signifi cant challenges before a shale gas revolution can be replicated – on regulatory, environmental and technological fronts.
I
n the UK, where shale gas reserves are likely to prove considerable, shale gas production and use is still some years in the future.
Professor Paul Stevens, Distinguished Fellow at Chatham House, says some estimates put
technically recoverable resources in the Bowland Shale Play in North West England at 210 trillion cubic feet, compared to nine trillion cubic feet of proven conventional gas reserves. “These are big numbers being bandied about and, of course, if they prove to be accurate, then it will supply gas to the UK for quite a long time,” he says.
When it comes to the reservations surrounding extraction, environmental concerns centre on underground water contamination through hydraulic fracturing – or fracking. Environmentalists also argue that shale gas operations will lead to methane leaks. Professor Stevens suggests that not all the claims are well founded. “My view of the scientifi c evidence is that properly operated and regulated, wells should not cause contamination, but there is no doubt that bringing these resources above ground is an extremely diffi cult business.”
Property rights are another far from straightforward matter. In the US, landowners
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stand to benefi t from any discovery of shale gas reserves in their backyard, while in the UK subsoil minerals and hydrocarbons belong to the state, so issues around compensation are hard to resolve.
In Europe, individual countries are responsible for regulating shale gas extraction, but the argument for EU-wide regulation is gaining traction. Professor Stevens’ view is that Brussels realistically may not be able to bring a coherent regulatory regime together in any sensible timeframe. “Such an effort would simply delay the development of shale gas in Europe due to regulatory uncertainty,” he says.
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SHALE GAS
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