Exploration • Drilling • Field Services
the future competitiveness of energy- intensive industries. Pepperell says simply: “Politicians are an important part of the policy-making process and energy policy has a direct impact on energy costs.”
Public support Putting the business case and legislative issues to one side for a moment, there still remains one consideration that Helge Lund also highlighted in his speech, which will inevitably play a part in the success – or otherwise – of shale gas; and that’s the thorny issue of public support. Contrary to the hysteria whipped up
by the tabloid media, Pepperell reveals that this situation is not as negative as some quarters would have us believe. He says: “A survey by FTI Consulting conducted in April 2014 shows that in the UK, 47% agree that in light of the crisis in Ukraine, the need for the UK to consider fracking for its own gas supplies increases, while only 21% disagree.” He adds that, “securing public support is very important. We all need and use energy. It is a key part of our modern way of living and working. Higher energy costs and the need for an affordable, secure and environmentally sustainable energy policy are important policy considerations. But it is imperative that policymakers understand and appreciate the broader context to ensure they make the right decisions for the longer term benefit of the society we live in.”
When it comes to the more technical side of things, Shale Gas Europe believes wholeheartedly that technology is not a barrier to success here. In response to the recent UK Queen’s speech that outlined a bill that will transform access rights to land where shale gas exists, Pepperell issued a press release stating: “We are only able to consider shale gas as a commercially viable energy source because of important advances in modern technology. Horizontal drilling is an efficient and effective way of sourcing this important fuel whilst minimising any potential impact by reducing the need for surface facilities. Shale gas drilling will be deep underground and far less intrusive than many other energy sources. Utility facilities are far closer to the surface and their facilities can be much larger.”
In terms of how things will pan out in coming years, Pepperell believes it is “very likely that shale gas will be a part of Europe’s future energy mix” – and that this future is not too far away. A big-name player that concurs with
this is Cuadrilla Resources, which has recently gone one step further and put a – hesitant – starting date on it. Te company has stated that by the end of 2015 it is hoping to fuel British homes with shale gas. Despite a backlash of negative publicity in the UK – particularly surrounding its exploration efforts in Sussex – Cuadrilla spokesman Neil Cameron says the firm’s own research into public opinion is in line with FTI Consulting’s findings. “From the opinion polls we’ve conducted in Lancashire during the past two years, we’ve found that most people have open minds when it comes to shale gas exploration. It’s crucial that we provide local communities with as much information as possible concerning our plans, so they can make decisions
“Although the European shale resources are large, the preconditions are not as supportive as in the USA, implying that shale gas development in Europe will take more time and that production costs will be higher.”
Aerial view of Cuadrilla drilling site.
based on facts instead of rumours.” Cameron explains that the potential benefits to these communities are compelling and ought to be more widely disseminated. “We need to continue busting the myths and unhelpful scaremongering about hydraulic fracturing, by working alongside UKOOG, academics and the government. Tere is now widespread acceptance that the development of a British shale gas industry has the potential to bring significant investment, community benefits and opportunities for local people, as well as the north-west and national economies.
Morten Eek, Statoil spokesman.
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