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UK Shale Gas Viable If It Matches Flow Rates Seen In US

UK shale gas is a viable option if it is able to match the flow rates seen in the US, according to the chief at IGas.

A senior figure from the company has told Utility Week that production of shale gas using hydraulic fracturing in the UK should be commercially viable if it can meet the average flow rates seen in US fields.

John Blaymires, Chief Operating officer at IGgas says that shale gas would contribute significantly to the energy mix in the UK as long as the country’s geological formations are as favourable as the ones being exploited in the US.

He added that given the substantial evidence that there is shale which contains gas in many UK fields, the main issue relates to whether the rates of gas flow can be deemed commercial. This, he says, is the only question to be addressed.

He said that there has only been one well tested so far, the Cuadrilla well near Blackpool five years ago, where the results gathered were found to be positive for shale gas supporters.

Mr Blaymires added that the costs of development will be higher in the UK than the US primarily because the supply chain is more expensive here as well as more costly legalisation.

However, he also commented that America faced the challenge of a lack of infrastructure in place to get the gas on the market, whereas the UK has infrastructure that can be tapped in to, which would make the process relatively cheaper than the US system.

He also pointed out that UK gas prices are higher than those in the US, however this gap is being reduced because of liquefied natural gas (LNG) imports into the UK.

However, he concluded by saying that UK costs will be higher than the US because although the gas price is down, we will still have to ensure that it will be economic to pursue shale gas development.

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BDC 316 : May 2024