Shale gas extraction policy call

31 July 2011 Last updated at 07:44 GMT By Caroline Rigby BBC News Up to ?70bn worth of shale gas reserves may lie in the rocks below south Wales, research suggests Shadow UK Energy Minister Huw Irranca-Davies has called for the UK government to devise a policy on shale gas.

Potential multi-million pound reserves lie under in south Wales but its claimed an extraction method called fracking causes pollution and could lead to earthquakes.

The Ogmore MP says the gas could help supply energy needs but must be handled safely.

The government says attempts to drill for it must be environmentally viable.

Mr Irranca-Davies Davies told BBC Wales Country Focus programme that he will continue to put pressure on UK Energy Minister, Charles Hendry over the issue.

It comes after research by exploration companies found a potential ?70bn of reserves in rocks deep under south Wales and numerous planning applications have been submitted for test drilling to be carried out.

Wind and renewables

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If shale gas, for example, can be part of our transition to a low carbon future and can provide cheap affordable gas, as it has done in the US, then great”

End Quote Huw Irranca-Davies Ogmore MP Fracking began in Blackpool this year but has been suspended while a review looks into any link with two recorded earthquakes.

Mr Irranca-Davies said the UK Government must embed shale gas in its wider energy policy.

"The reason is that if you look at anything else, whether it's nuclear, whether it's oil industry, whether it's wind and renewables or even tidal they all fit within a proper coherent policy structure.

"Whereas, with shale gas, we have the risk it will take us unawares."

However, he is not against shale gas exploitation altogether.

Health and safety

"A lot of people recognise that there may well be potential for shale gas. Particularly if you look at the decline in North Sea Gas and our increasing reliance on imported gas -- LNG and elsewhere, pipelines from Russia, pipelines from Norway -- this could have potential."

He added: "If shale gas, for example, can be part of our transition to a low carbon future and can provide cheap affordable gas, as it has done in the US, then great.

"But only if it is done safely, if there's no environmental impacts and the health and safety of individuals in the areas are looked after as well. Why doesn't the government look at this and decide how do it safety, if at all?"

"We'll keep on pushing for it because I don't want to rule out shale gas entirely -- although I know there are some people who would want to see it completely prohibited.

"But I don't agree with them because I think we need to assess both its potential and its risks properly."

The Department of Energy and Climate Change has said companies must go through a variety of checks, including gaining planning permission before any fracking takes place.

Earlier this month Vale of Glamorgan council leader, Gordon Kemp, called for national level guidance on shale gas extraction.

The Welsh Government has also said it would welcome working with UK ministers to set up a policy framework.

A spokesperson said it "would welcome the UK Government working with devolved administrations to put in place a policy framework for shale gas. But the case for a moratorium rests with Westminster."

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Policy call on shale gas reserves

1 July 2011 Last updated at 05:52 GMT By Caroline Rigby BBC News Up to ?70bn worth of shale gas reserves may lie in the rocks below south Wales, research suggests The leader of Vale of Glamorgan council has urged the Welsh Government to form a policy on shale gas exploration.

Research suggests reserves comparable to those of North Sea gas may be stored in rocks deep underground south Wales.

But concerns have been raised over the environmental effects of extraction - also known as fracking - amid fears of water contamination and earth tremors.

The Welsh Government said it would welcome working with the UK government on a policy framework for shale gas.

Fracking involves injecting sand and fluids into underground hard shale rocks to force them apart and release gas trapped inside.

The process has caused controversy in the US, where some householders claim that shale gas leaking into their drinking supply causes tap water to ignite.

In Lancashire, fracking began earlier this year. They are the first wells in western Europe dedicated to shale gas alone.

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We're looking at a regional issue for about six different Welsh counties - it is a matter the assembly should look at.”

End Quote Counciillor Gordon Kemp Vale of Glamorgan council But the operation has had to be put on hold over fears of a link to recent earth tremors in Blackpool.

Research suggests shale gas worth up to ?70bn may lie in the rocks deep below south Wales.

Bridgend-based Coastal Oil and Gas has been granted planning permission for exploratory drilling north-west of Maesteg in the Vale of Glamorgan. But the applications are for drilling purely for sampling and testing in the lab.

The firm would have to submit further applications if it wanted to exploit the reserves commercially

However, Louise Evans, of the Vale Says No campaign group said: "People are certainly worried about it. It's a very short-term fix with very long-term consequences.

Drilling for gas in the UK has been suspended due to earthquake concerns

"The risks involved in this practice are huge. We're not calling for a halt. We're calling for a moratorium, for the (UK) government to undertake necessary environmental and economic impact studies so that they know what they are letting themselves in for."

A cross-party group of MPs on the Energy and Climate Change Committee recently rejected safety concerns and recommended that drilling should be allowed in the UK.

But there are concerns the planning system in Wales is not geared up to cope with a proposal on such a scale.

Vale of Glamorgan council leader Gordon Kemp said: "This is a matter that should be looked at and possibly determined by the National Assembly.

"The assembly issue advice on virtually every other planning matter, but there's nothing on this at the moment.

"We're looking at a regional issue for about six different Welsh counties. It is a matter the assembly should look at."

A spokesperson for Welsh Government said it would "welcome the UK government working with devolved administrations to put in place a policy framework for shale gas but the case for a moratorium rests with Westminster".

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MPs urge backing for UK shale gas

23 May 2011 Last updated at 23:53 GMT By Roger Harrabin Environment analyst, BBC News Gas is a natural by-product of shale rock A Commons committee has urged ministers to support plans for controversial shale gas drilling in the UK.

The energy select committee said environmental problems associated with it in the US could be overcome by tight regulation and good industry practice.

But the MPs said the UK government would need to be vigilant to ensure the technology did not pollute water or produce excessive greenhouse emissions.

Environmentalists said MPs should have called for a moratorium on shale gas.

Campaigners want a moratorium until research into allegations about the technology is complete.

Shale gas is significant to the UK in two ways. First, the massive expansion of shale gas in the US and also possibly in China may depress global gas prices and cause countries to favour gas over coal.

Some experts see this as a double-edged sword - low energy prices are a benefit, but might divert investment from the renewables and nuclear essential for the low-carbon future planned by the government.

The second issue over shale gas is one of energy security. The British Geological Survey estimates that onshore shale gas can supply 1.5 years of the UK's total gas needs.

The MPs say this is a useful but not major contribution - and they recommend that the government should encourage the development of offshore shale gas, where reserves may be far higher, albeit more costly to recover.

'Regulation case'

Test drilling for shale gas is currently underway in Lancashire near Blackpool. The company, Cuadrilla, believes that onshore deposits of shale gas in the UK may have been underestimated.

Critics fear this is industry hype, but Cuadrilla says the shale gas seam near Blackpool is so thick that it may not need the horizontal fracking (rock fracturing) characteristic of so many deposits in the US. Cuadrilla says vertical fracking may be achievable in Lancashire.

It is the fracking process - creating tiny explosions to shatter hard shale rocks and release gas 10,000 feet underground - that has caused so much controversy in the US. Some householders claim that shale gas leaking into their drinking supply causes tap water to ignite.

Some communities see shale gas as a route to local riches, as well as energy independence

The MPs said this looks a case of inadequate regulation. Tim Yeo MP, chairman of the committee, said: "We can't see any evidence that UK water supplies might be at risk from shale gas - if it is done properly," he told BBC News.

"The regulatory agencies have to keep their vigilance and monitor drilling closely - but the area where the fracking is being done is well below the water table so there really should not be an issue."

The other focus of environmental concern over shale gas is greenhouse gas emissions. A study at Cornell University warned that methane leaks from wells could be so high that in some cases the atmospheric warming effect of shale gas drilling might outweigh that of coal. The MPs dismiss this fear, pointing once again to the need for good practice and regulation to prevent leaks.

David Nussbaum, head of the green group WWF, says this is complacent. WWF is calling for a moratorium on shale gas drilling in the UK until the US Environmental Protection Agency has carried out a major report into the practice - probably next year. They also want to see more studies on the climate effects of shale gas.

He told BBC News: "Shale gas is a controversial source of energy. We've got to be very, very cautious before we go gung-ho for shale gas and we believe there has to be very good evidence before we decide this is the way forward."

The government says existing laws are strong enough to deal with the issues raised - and that bids for licences to extract shale gas (as opposed to prospect for it) will be considered in the normal way.

The new source of energy is proving controversial in Europe, with pro-nuclear France in the process of banning shale gas production and Poland, thought to have by far the biggest reserves in Europe, caught in a major industrial debate about whether to concentrate its efforts on coal or gas.

Some analysts warn that the shale gas phenomenon has provoked an unhelpful war of words between the gas and renewables industries, which complement each other in a way that nuclear power does not.

The argument runs that gas will be needed as a relatively low-cost transition technology, filling in the generation gap when the wind drops. Nuclear power, on the other hand, competes with wind because it produces baseload electricity that needs to be used.

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