Week Ending 27th April 2014
Brace Yourself for the Shale Oil Invasion
4000 holes in Blackpool Lancashire - the pollution prospects in PEDL165
UK news highlights
Contrary to my prediction, the BGS/DECC report on the Weald and Wessex shale basins will not now appear, even though reports suggest it is complete. Why? Because the government, in an act of pure cowardice, has put the lid on the report until after the May elections. The report is trailed to predict a huge shale oil shale rush by frackers in the Tory south-east. From Kent to Hampshire and Dorset, voters will realise they are to be seriously fracked, if Cameron and Osborne get their way.
The Winter Gardens in Blackpool was the scene of much activity on Thursday, as activists from all over the country voiced their disbelief at the spurious promises of jobs at the "supply chain" conference. At the conference was released a new report from the operators group UKOOG. It claims that only 4,000 wells dug over 18 years will generate 64,000 jobs. It sounds incredible, and is exactly that. The new report is based on the now widely from 2013, and the government's own report later came up with an estimate for jobs created a fraction of the IoD's. The report from EY for UKOOG produced some incredible media claims.
What a waste! According to the report, the shale gas industry needs 33 BILLION of investment. What that amount of money could do for clean energy!
The tired old figures from the IoD hide one thing. A mere 4,000 wells will only produce (according to US experience estimates) about 1.1 billion cu ft each over their lifetime, of say twenty years. That's a total of 4.4 trillion cubic feet. In twenty years! Britain's current gas usage is over 3 trillion per year, around 3.1 tcf. Even at the misleading IoD report figure of 3 bcf per well the fracking ambition is pathetic. A few years of supply at most. This is clearly an attempt by a single company - Cuadrilla - to get in fast and make a quick killing before the s*** hits the fan when everybody else realises shale gas poweering Britain is just a dream.
The government continues using every trick in the book to push fracking - fixing the law, now conning G7 into believing the UK gives a damn about Europe.
Ed Davey throws a few crumbs - £2 million - at the frackers to help them make fracking safer. Hang on. Aren't we being told all the time that fracking is already safe?
In January Egdon were boasting about their interest in PEDLs 139 and 140 and there being 1.76 trillion cu ft there. They calculated they could get .19 tcf out (wow - that's enough to supply UK gas for about three weeks!)
Obviously this didn't cause too much excitement, except for a buy-in from Total. So now Egdon have an "independent" report come up with a new figure of 18 trillion gas in place in their patches. Let's be generous - 10% of that could almost meet UK gas demand for - wow - say seven months.A more achievable 5% for maybe 14 weeks.
Shares shot up 13% on the news - but are the buyers being conned? Are they aware Egdon only has a small percentage interest in the licences?
Egdon bought media hype though. "Huge shale gas find confirmed in Britain" ran the Business World headline.
The bad news was "Egdon Resources, listed on Britain's Alternative Investment Market (AIM), warned however that it had not assessed the risks of extracting the gas, which meant there was no certainty extraction would be commercially viable."
Outside the UK
Even the Mail couldn't resist printing the story of the US family who have just won $3 million in compensation for fracking-related illness and livestock deformities. This is claimed as the first US case which was won before a jury.
Channel 4 wakes up to the North Dakota flaring scandal.
Indian fracking delayed.
And of course the story from the US continues with an increasing trickle of stories showing how states are getting more and more worried about fracking, accidents and instances of industry misbehaviour are continuing to crop up. And how the shale boom may have bust.
Any opinions here not quotes from the
week's news reports are my own.
News As It Came In
links to original stories
Minister’s visit set to spark fracking protest
Shale gas trucks crash in Pennsylvania
Brighton Pavilion MP slams fracking and says protests like Balcombe will continue
Anti-fracking protesters expected after Cuadrilla submits new application to drill in Balcombe
Fracking in East Yorkshire? Trespass law change could encourage shale gas firms
Fracking activists set up protest camp
Shale to boost jobs across the supply chain
How North Dakota's fracking frenzy is wasting natural gas
Oilex may take almost two months to begin fracking Indian well
Fracking - the clean fight against dirty fuels
Ministers want to change trespass law to boost fracking
UK Pushing G7 for Shale Gas and Nuclear Focus to Loosen Russia Energy Grip
Former Mobil Oil exec urges brakes on gas fracking
Fracking expert Mark Zoback: We need good science, good engineering, good regulations and good enforcement
IGas shares soar as government plans to free up rules on fracking
Next disruptive shale technology will improve recoveries: Schlumberger fellow
Updated: BREAKING: Jury awards $3 million in first fracking case
New fracking law sparks anger
Family awarded $3MILLION after court finds fracking next to their land DID make them sick as they reveal rashes, nausea and nosebleeds they say were caused by chemical exposure
Ministers urged to prepare for huge fracking expansion despite protests
Fracking could generate £33bn and 64,000 jobs for UK
Businesses told to get ready for shale
Shale gas revolution set to provide over a third of the UK’s energy needs - AS IF!
Fracking tests to take place in Glazebury
UK Shale Gas Industry Needs £33bn Investment to Get Fracking
Lincoln County Gas Well Explosion – 3 Mile Evacuation Zone
Fracking 'an opportunity for north west' - energy minister
Texas oil company used acid in Florida wildlife sanctuary soil, denies fracking
Fracking Waste Too Risky For Connecticut
£2m for ‘safe’ shale gas production ideas
Is shale an oil and gas "revolution" or a "retirement party"?
Huge shale gas find confirmed in Britain
Egdon Resources estimates high shale gas content in UK licences
Egdon Resources shares surge as unveils resource estimate upgrade