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.

Oil is still the cheapest fuel used to heat homes, according to new industry figures. The statistics complied from the Sutherland Tables indicates that although heating oil prices have slightly increased since the start of the year, the average yearly cost of using oil to heat homes has gone down once more. These latest figures provide good news for both home owners and the oil heating industry. The most recent quarterly data from the Sutherland Tables, an independent source for comparing domestic heat prices in the UK, shows that oil is still the least expensive major home heating fuel by some distance. With an oil condensing boiler, it now costs just £690 to heat an average three bedroom UK home for a year. That is 31% cheaper than main gas, which works out as the second cheapest option at a price of £1,007 per year. Meanwhile, oil works out at 52% cheaper than an LPG condensing boiler (£1,448 per year) and 56% cheaper than electric storage heaters (£1,588 per year). The Tables also show that oil condensing boilers are considerably less expensive to run in comparison with renewable heating options. In every quarter for the past three years, the average yearly heating cost for oil users is decreasing with an increase in consumer confidence. This has been reflected by the rise of boiler sales, which for the first quarter of 2016, are at their highest sales rate for almost 10 years. Jeremy Hawksley, OFTEC Director General, says that the industry has enjoyed sustained growth periods in sales thanks to three years of falling oil heating costs. Mr Hawksley said that as a consequence, oil condensing boiler sales have reached their highest level in just under 10 years, while receiving more and more enquiries from Gas Safe technicians who want to go into the oil market.