‘Let’s get fracking!’ UK Shale Task Force green-lights gas on jobs, safety, environment and economic grounds

fracking diagramShale gas can be produced safely and usefully in the UK, and can help the UK with the transition to a renewable economy, provided the strictest environmental standards are in place.

This is the overarching conclusion of the Task Force on Shale Gas in its final report, published today (15 Dec 2015)

The Task Force also recommends that exploratory drilling should go ahead as soon as possible, in order to establish clearly how much gas is available and what sort of industry might be possible.

The report found that, provided the highest regulatory and industry standards, there is no more risk to the public from fracking than other comparable industries.

Lord Chris Smith, Chairman of the Task Force on Shale Gas, said: “Our conclusion from all the evidence we have gathered over the past year is clear.

“The risk from shale gas to the local environment or to public health is no greater than that associated with comparable industries provided, as with all industrial works, that operators follow best practice.”

“The size of the UK industry’s impact will depend on its (as yet unknown) potential output. We recommend that a number of exploratory wells should be allowed to go ahead, under the very strict environmental safeguards that we have outlined in our previous reports, in order to establish a much clearer picture of where and how much recoverable gas there is in the UK.

“Only when we have a better understanding of how much gas could be recovered in the UK will the public be able to make an informed decision as to whether they support it.”

The Task Force is convinced that gas has a role to play as an interim energy source over the short and medium term. However, the Task Force insists that even exploratory drilling must not be allowed to restrict or prohibit the ongoing development of a renewables and low-carbon energy industry to meet the UK’s mid-to-long-term energy needs.

In its third report the Task Force called on Government to commit to applying its energy specific revenue to investment in R&D and innovation in CCS, and is therefore disappointed at the government’s decision to withdraw their £1billion support for CCS demonstration projects. 

Lord Smith added: “We have always said that it is up to individuals to make up their own minds about shale gas on the basis of reliable and factual information.

“The guiding principle of the Task Force has been to provide that information.

 “Our recommendations in this fourth and final report are the culmination of more than a year of academic review, input from industry, experts, campaigners and relevant associations. We look forward to both the government and the public’s response.” 

Hector Grant, Chief Executive, Industrial and Power AssociationHector Grant, Chief Executive of the Scottish Energy Association, (pictured, left) commented: “The final report from the Task Force on Shale Gas shows that we can control the gas supply chain ensuring that the highest standards of safety and production are achieved through regulation and transparency.

“To be able to source gas from the UK reduces our reliance on imports and allows the UK to replace coal generation with gas thus achieving the CO2 targets required to meet obligations from the Paris COP21 summit.

“This medium term supply solution will therefore give the time needed to develop commercially viable green solutions that can be used to meet our energy needs and obligations over the coming years.”

Senior sources within the industry expect new onshore oil and gas (shale) exploration licences to be issued shortly by the UK Dept for Energy (DECC). For full story on ‘The Scottish Shale Moratorium’ see at foot

A summary of Task Force final recommendations and best practice on UK Shale gas  follows:

 

Transparency

Transparency must be placed at the heart of any nascent shale gas industry. Operators must agree to full disclosure of the chemical content of materials used in shale gas exploration and production and agree that the specific composition will not exceed levels mandated by the Environment Agency.

The Task Force believes operators must do everything possible, and be transparent, in seeking to minimise the effects that their works will have on nearby residents.

 

Monitoring

Baseline monitoring of air, land and water should begin as soon as a site has been identified. Operators must be held to the very highest standards for well integrity.

Operators must commit to using only the very best materials and techniques, and to allow independent monitoring of the site, with the community involved in an oversight role, to ensure that any indication of a failure of well integrity can be identified quickly and remedied. 

The process of “green completions”, recently made compulsory in the US, should also be mandated in the UK for production wells. The Task Force would wish to see no venting of gases, and for the exploratory phases small time-limited flaring permissions granted only when necessary. 

Communications

Local residents should have a direct role in monitoring any operations in their area. Monitoring of sites is essential.

The Task Force believes that, in order to foster trust between operators and the communities in which they wish to work, inspections must be carried out by an appropriate regulatory body with community representatives able to attend to ensure complete transparency.

Robust regulation

The Government must commit to ensuring that the regulatory system for the shale gas industry is robust and fully resourced.

The existing regulatory system is currently fit for purpose, as it will inevitably take time for a new industry to grow.

If a shale gas industry does develop, however, the Government should explore the possibility of creating a bespoke regulator specifically to oversee this industry, to assume the current responsibilities of the Environment Agency, Health and Safety Executive and the regulatory responsibilities of the Department of Energy & Climate Change.

Shale job prospects

In the economic impacts explored in the fourth report, the Task Force is convinced that a shale gas industry in the UK has the potential to create thousands of jobs directly and support a wider supply chain indirectly.

If it proceeds, the Government must commit to appropriate skills training in areas in which shale gas production will occur. The Task Force concluded that a domestic shale gas industry provides a clear means of strengthening the UK’s energy security and mitigating against potential risks to energy supply.

Tax

Furthermore, the Task Force sees a need for greater clarity about tax incentives such as halving the rate of tax applied to profits of shale gas and these ought to be reviewed in full if and when an industry (of any scale) is up and running

Lord Smith added: “Without exploratory drilling the economic impacts of shale gas remain largely unknown. However, we make two strong recommendations to make sure the benefits are felt.

“First, the Government must commit to appropriate skills training in areas in which shale gas production will occur.

“And second, we recommend that operators and Government specify details on how the creation of successful production sites will benefit residents living nearby.”

The Task Force has further called on operators (or UKOOG) to outline exactly how they intend to provide £100,000 of community benefits for exploratory well pads.

The report says local communities have the right to know how they will benefit and, where possible, should have a say in how they benefit. For all wider community payments, the industry and Government should define exactly what is meant by “communities”.

Additionally the administration of community benefits payments should involve residents and local authorities working together, supported by the operators.

For more information visit www.taskforceonshalegas.uk

For full story on The Scottish Shale Moratorium see also:

Strong UK interest in Scottish shale energy as DECC confirms 9 oil-gas firms have applied for exploration licences

http://www.scottishenergynews.com/strong-uk-interest-in-scottish-shale-energy-as-decc-confirms-9-oil-gas-firms-have-applied-for-exploration-licences/

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