Can Shale Gas Save the UK Energy Industry?

Despite what many people think shale gas was discovered nearly 200 hundreds year ago but it was overshadowed by much larger volumes from conventional gas fields and cheaper extraction costs. Thanks to technological advancements shale gas extraction has become a viable option for many countries around the globe, including the UK.

In the US alone the production tripled since 2006 and accounts for 20% of all natural gas produced in the country with predictions of achieving 40% in the near future. With a steady projected growth of 4% per year for the next 20 years, shale gas will be a game changer of the US energy industry.

Here in the UK opinions about shale gas diverge, while the environmentally friendly crew advocate that the extraction process could pollute underground water aquifers. Recent studies conducted by the Energy Select Committee suggest that these risks are non-existent.

Shale gas is extracted through a process called "fracking" which uses chemicals and millions of gallons of water to release gas trapped deep underground. The chemicals used in the process is not publicly known but a recent research conducted by the Manchester University's Tyndall Centre identified 58 out of 260 chemicals held in large quantities by US operators. These chemicals are potentially hazardous to humans and wildlife and 15 to 80 of the injected chemicals returns to the surface as flowback, potentially bringing with it heavy metals, radioactive materials and hydrocarbons.

On the other hand an even more recent research conducted by the Energy Select Committee concluded that risk of fracking can be neutralised if the well is properly built and inspected regularly:

Tim Yeo, chairman of the Energy Select Committee stated:

"There appears to be nothing inherently dangerous about the process of fracking itself and, as long as the integrity of the well is maintained, shale gas extraction should be safe. Regulatory agencies must of course be vigilant and monitor drilling closely to ensure that air and water quality is not being affected".

Geological researches suggest that there could be approximately 150 billion cubic metres of onshore shale-gas in the UK which is equivalent to 1.5 years of gas self sufficiency. Such reserves would not be enough to provide Britain with the security needed for its energy industry nor would it have any influence on household and business gas prices.

However, the same research indicates that it is offshore where the biggest UK reserves are and the government should stimulate the development of offshore shale gas extraction.

Despite higher extraction costs, offshore reserves could potentially help the UK increase its energy security and make the UK self-sufficient in gas once again in the foreseeable future.