UK ‘Unlikely’ to Replicate US Shale Success
VADUZ, Liechtenstein, October 2, 2013 /PRNewswire/ –
Despite having substantial shale gas resources, analysts believe that the UK is
unlikely to replicate the US ‘shale success story’, writes World Review author and energy
economist Dr Carole Nakhle.
‘A limited onshore domestic service industry, geological complexities, no private
ownership of mineral rights, high population densities, strict environmental regulations,
and local opposition, among other obstacles, all add to the cost and time of exploiting
shale gas,’ she says in World Review [http://www.worldreview.info ], a free-access website
focusing on global geopolitical affairs.
UK George Osborne, Chancellor of the Exchequer has offered a package of measures to
encourage exploration of the UK’s shale gas resources, including ‘a generous new tax
regime for shale’.
‘To date, only a small number of small companies have expressed interest in shale
gas,’ she says. ‘Although the recent acquisition by energy giant Centrica of a 25 per cent
stake in Cuadrilla’s exploration license in Lancashire is seen as an encouraging sign.’
However, local communities continue to oppose shale gas exploration. ‘There are fears
that fracking will cause serious environmental damage, from earthquakes to ground and
water contamination. It would be difficult for companies to proceed with their plans
without the blessing of local communities,’ she adds.
What has been done so far is just the start of a long process before the UK can claim,
with certainty, that shale gas resources will dramatically alter its energy realities,
says Dr Nakhle.
Access the full World Review report here.
About the author
Dr Carole Nakhle is an energy economist, based in London, UK, specialising in
international petroleum fiscal regimes, world oil and gas market developments, and energy
policy. She is Associate Lecturer in Energy Economics at the University of Surrey and acts
as external expert for the Fiscal Affairs Department at the International Monetary Fund
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