LONDON, June 13 (Reuters) – Britain’s shale gas industry
remains more of a concept than reality. But Centrica’s decision
to buy a stake in one of the most promising tracts provides the
capital, technical expertise and political muscle to move to the
next stage of development.
Centrica announced Thursday that it has bought a 25
percent stake in Petroleum Exploration and Development Licence
(PEDL) 165 which covers the Bowland shale in Lancashire, from
Cuadrilla Resources and AJ Lucas.
LONDON, June 12 (Reuters) – Shale gas supporters say it can
cut greenhouse emissions by replacing dirtier fuels such as
coal, but critics warn it is worsening climate change due to
methane leaks from shale wells.
Because methane is so much more potent than carbon dioxide as
a greenhouse gas, even small emissions can have a huge impact.
Depending on the time horizon, 1 tonne of methane has the same
global warming potential as 25-72 tonnes of carbon dioxide,
according to the Intergovernmental Panel on Climate Change.
LONDON, June 11 (Reuters) – The shale revolution is likely
to have a far bigger effect on the global gas market than on oil
supplies, entrenching the long-term price advantage of gas,
according to new data from the Energy Information Administration
Shale will extend recoverable oil resources by only 11
percent but boost recoverable gas resources by 47 percent,
according to the agency’s report on “Technically recoverable
shale oil and gas resources: an assessment of 137 shale
formations in 41 countries outside the United States”.
LONDON, June 10 (Reuters) – Lack of specialist equipment and
skilled personnel have been the biggest barriers to raising the
supply of oil over the last decade, contributing to the steady
escalation in prices.
Exploration and production (E&P) activities have been hit by
shortages of everything from drilling rigs and pressure pumping
equipment to the guar gum used for hydraulic fracturing,
experienced geologists and drill team leaders.
LONDON, June 7 (Reuters) – Horizontal drilling and hydraulic
fracturing are transformative technologies, but their eventual
impact on global oil and gas supplies depends on whether the
production techniques pioneered in just a handful of shale plays
in the United States can be replicated in others around the
So far the evidence remains thin. Only a tiny number of
shale wells have actually been fractured outside North America.
LONDON, June 6 (Reuters) – Britain has had small but
significant onshore oil and gas production for over 60 years.
Ironically, most of the output has come from fields in
prosperous and environmentally sensitive parts of southern
England, where hostility to new drilling and hydraulic
fracturing is strongest.
“It’s one thing to have fracking in the vast plains of
America,” according to one Conservative Member of Parliament
quoted in the Financial Times recently. “It’s a whole different
matter when people will see gas production in the rolling hills
LONDON, June 5 (Reuters) – Rising shale oil production in
the United States has slashed light oil imports from countries
such as Nigeria and Algeria by more than half in the past two
The unexpectedly rapid growth in shale oil output has
rightly been termed a supply shock by seasoned observers, but it
is also a quality shock.
LONDON, June 4 (Reuters) – In future, light low-sulphur
crudes will command a much smaller premium over heavy sour
grades, as booming shale production in the United States and
growing demand from Asian refineries upend traditional pricing
relationships in the physical oil market.
Journalists and analysts have traditionally characterised
light sweet crudes as “high quality” and heavy sour ones as “low
quality,” with light crudes more scarce and valuable than their
heavy sour counterparts.
LONDON, June 4 (Reuters) – Britain’s politicians and
petroleum explorers are promoting increasingly optimistic
visions about the country’s shale gas future. But the only way
to gauge the potential properly is to start drilling and
So far, only a handful of wells has been drilled
specifically to explore shale formations, and only one well has
LONDON, May 31 (Reuters) – If OPEC is eventually forced to
trim its oil exports in response to the shale boom, Saudi Arabia
will have to shoulder most of the production cuts.
Past experience suggests Saudi Arabia would have to absorb
about two-thirds of any cutbacks even though it accounts for
only one-third of the organisation’s exports.