Shale firms offered exploration sites

Shale gas firms such as Cuadrilla, IGas and Ineos have been granted exclusive licences to search and bore for oil and gas in areas of land typically 10km2 that need no further environmental assessment.

The majority of sites will be located in Northern England and the Midlands.

Keeping the lights on and powering the economy is not negotiable

Energy minister Lord Bourne

“Today’s announcement regarding the offer of 27 blocks gives those successful companies assurance about the blocks that they will be formally offered later in the year,” said OGA chief executive Andy Samuel.

A second group of 132 sites has been subjected to assessment under the Conservation of Habitats and Species Regulations 2010, the government confirmed yesterday.

The findings of that assessment are now out for consultation, with the OGA expected to offer licences for the additional 132 blocks later this year.

“As part of our long-term plan to build a more resilient economy, create jobs and deliver secure energy supplies, we continue to back our onshore oil and gas industry and the safe development of shale gas in the UK,” said energy minister Lord Bourne.

“Keeping the lights on and powering the economy is not negotiable, and these industries will play a key part in providing secure and reliable energy to UK homes and businesses for decades to come,” Bourne said.

Yesterday’s announcement comes after energy secretary Amber Rudd and communities secretary Greg Clark announced plans to fast-track shale gas planning applications if local councils failed to make an appropriate decision within the current 16-week period.

Cuadrilla, who has been offered two new exploration licences, welcomed the opportunity to progress its shale gas exploration work in Yorkshire, after it was refused permission to frack at two sites in Blackpool.

“Our first priority will be to talk with local communities,” said Cuadrilla chief executive officer Francis Egan.

These offered licences to frack will cause yet more anxiety for people living under the cloud of fracking

FoE head of campaigns Andrew Pendleton

“We recognise that some members of the public will have concerns and there continues to be a good deal of misinformation circulated regarding onshore shale exploration,” Egan said.

“We have a responsibility to ensure people understand the facts and are not misled by harmful scaremongering.”

Environmental groups say this latest announcement will open up Northern England for a “fracking blitz” and provoke further controversy and anger.

“The Government’s own report into the rural economy impacts of fracking highlights a myriad of concerns, including a drop in house prices, impacts on tourism, and increased noise and traffic congestion - not to mention local environment and climate risks,” Friends of the Earth head of campaigns Andrew Pendleton.

“These offered licences to frack will cause yet more anxiety for people living under the cloud of fracking, now that the Government is allowing companies to drill right through aquifers that are used to supply household drinking water,” Pendeleton added.

However, Ken Cronin, chief executive of industry body UK Onshore Oil & Gas (UKOOG), said more than 2000 onshore oil and gas wells have already been drilled in the UK, with 120 currently operational - yet few people realise these sites are even there.

“The opportunity exists to create tens of thousands of jobs, reduce imports, generate significant tax revenue and support British manufacturing from an extremely small footprint which will benefit the environment at the same time,” Cronin said.

“The offers of these licences and the continued support from Government are critical in developing a genuine UK-based energy mix for this country and today’s announcement is a significant move in helping us to reduce CO2 emissions,” he added.