Future of Fracking

The future of fracking has been in doubt recently due to the drop in oil prices, if this continues or even remains at this low price the shale gas industry will likely go into a state of collapse. The stability, and therefore future, of the shale gas industry is different for each country depending on economy, accessibility to gas reserves and import/export opportunities. The industry is constantly advancing however, more recently with horizontal drilling and high volume fracking to reach gas previously inaccessible either due to protected land or geology characteristics.

In the USA the process of hydraulic fracturing emits 40% of their total methane (EPA, 2012) but new fracking regulations proposed by the Environmental Protection Agency (EPA) in the USA in 2012 are set to dramatically reduce the countries greenhouse gas emissions. Since these regulations were put in place the industries methane emissions have fallen by 13%. Technologies are being advanced to capture more and more of the greenhouse gases emitted by fracking, particularly methane and volatile organic compounds (VOC’s), this is known as ‘green completion.’

Increased knowledge of the severe impacts of oil and coal have pushed many people into the arms of fracking but there are still climate, water and health impacts involved in shale gas meaning it is likely (or hopefully) going to only exist as a temporary solution. The fact that not all of the problems associated with fracking are yet known, particularly in the UK, means that the future of the industry remains unclear. A lot of the industry’s future depends heavily on demand and supply, can the low price of gas persist? If it doesn’t due to the high cost of the fracking process  and prices begin to rise it is likely that people will finally turn their attention to renewables in hope of cheaper energy. So maybe fracking is just the final step in getting us to a carbon-free, renewable society.

Finally, one of the main questions influencing the fracking industries future is whether it can it be trusted despite a track record of environmental disasters. Since the release of Gasland (see previous blog) it has been no secret that the process of fracking can have very serious environmental and health impacts surrounding the site as well as global climate impacts. This has caused massive public opposition towards the industry meaning any advancement needs to deal with fixing these problems prior to anything else if it going to be supported.  

The Fracking Song

This amazing and annoyingly catchy song perfectly sums up everything you need to know about fracking from the main impacts to general public opinion. Enjoy. 

The Dash for Gas

The dash for gas was the move towards using natural gas for electricity in the 1990’s as it was thought of as a solution to climate change. It caused gas turbine power stations to go from just 5% of the UK’s generating capacity in 1990 to 28% in 2002.

This week the dash for gas continues as on Tuesday night MPs voted to allow fracking under national parks using horizontal drills stationed just outside the boundaries of protected areas. Since David Cameron announced last year that the UK is going ‘all out for shale gas’ it has been a never ending battle between supporters and opposition. One of the conditions for this new agreement states that any drilling that does take place under national parks has to be at a depth of at least 1200m to minimise any potential impacts.  

Not all MPs were on board with this week’s decision. For example, labour wanted a moratorium on fracking until it can be proven that it is a safe form of energy and the leader of the Liberal Democrats, Tim Farron, is quoted in saying that it is a ‘complete lack of regard for protecting some of the most beautiful scenery in the UK’. The day after this vote 159 sites were granted licenses to explore for shale gas with the majority in northern England. This marked a 50% increase in the amount of fracking licenses awarded in the UK and it is estimated that the first shale gas production could begin by the end of the decade and energy imports could be almost halved within 15 years. 

On the other hand it is argued that this move will dramatically reduce the countries carbon emissions at the same time as increasing our energy security. It is a vital step that needs to be taken to move forward but strict regulations need to be set for protecting the environment and health and safety of the population. 

This decision is essentially as complete U-turn on earlier promises to keep fracking away from national parks and is a shock as the UN climate talks in Paris have only just ended, surely avoiding fossil fuels is a big part in the fight against climate change and the UK seems to be going in the opposite direction.

COP21

During the past 2 weeks the leaders of almost 200 countries have been negotiating in Paris in an attempt to reduce future global temperature increase to less than 2°C by reducing CO₂ emissions. A final agreement was made on Saturday evening that is both legally binding and voluntary but benefits all countries including developing nations so as not to inhibit any economic growth.

For more information on the final agreements made in Paris click here.

Although there were many arguments that natural gas exploration and use should be a major commodity during the climate talks particularly in developing countries there were also a lot of protests of which many have had hydraulic fracturing as their main target. One of the first major disruptions was caused by two protesters who interrupted Shumlin’s speech with a banner that read ‘fracked gas = climate change’ and called on him to end fracking in Vermont, USA. Also on the 10^th of December there was an international gathering organised by Friends of the Earth Europe (FoEE) as an opportunity for people and groups who oppose fracking to meet, share experiences and create joint strategies for the future. 

There were also many side events during these two weeks in Paris including ‘Keeping Fossil Fuels in the Ground’ which focused on putting pressure on the US fracking industry particularly in California. One of the members of the panel is quoted saying “If you’re looking for good way to heat up the earth fast, poke holes in the earth and let methane pour out” and if I’m honest I think this is a pretty accurate explanation of fracking.

Fracking on Safari

Kgalagadi Transfrontier Park is one of Africa’s largest wildlife reserves which straddles the border of Botswana and South Africa. Over ¾ of the conservation area lies in Botswana and it was announced this week that in September 2014 half of this land was very quietly sold to a UK based fracking company called Karoo Energy for natural gas exploration. Conservationists and park officials were not informed on this decision and were unaware of any licenses being issued.

The extent of the natural gas basin is still unknown (Corriganand Murtazashvili, 2015) but the energy company is core drilling (not fracking) two boreholes in the area which are due to be completed at the end of 2015. It is reported that the company has applied to renew licenses but no decision has been made and no mining licenses have yet been given.

It is unclear what impact this will have on the environment but it cannot be good for the protected wildlife that live in the reserve, it is upsetting to see one of the only remaining natural and unharmed environments on the planet is about to be subject to an incredibly invasive process just for a short-term economic benefit. The lions are not going to be happy when it scares away all their food. I definitely would not want to be working on a drilling site surrounded by angry, hungry lions. 

But wait, believe it or not there is yet another controversy in relation to fracking in Africa. Hilary Clinton is one of the major forces behind bringing the activity to Africa despite her being strongly opposed to fracking in the USA. She helped advise African and other world leaders on the benefits of fracking and even organised visits to drilling sites to show off how it works, her aim is apparently to use the US as a 'role model' for hydraulic fracturing around the world. The support provided by Clinton during her tenure in office has lead to many changes in policy in African nations and pushed them towards using natural gas as an energy source. 

Oil Price Collapse Due To Fracking

There was an article in the Evening Standard yesterday about how oil prices are rapidly falling and the unexpected/political reasons for this. Oil now costs around a third of what it did only one year ago at $40 a barrel rather than $100 and it is believed that this is due to the boom in the US fracking industry. Saudi Arabia aims to kill off as much of this industry as possible with lower oil prices so as to avoid the US becoming completely self-sufficient with no dependence on supply from the Middle East. This tactic could be considered good news to consumer nations such as much of Europe but it is not clear how long it could last. There is a flaw in this plan however, Saudi Arabia cannot maintain these low prices without losing too much money and once they go back up the US gas reserves will still be there ready to be fracked with higher profits than ever.

The Culprits

This blog aims to give a little bit of background on some of the main energy companies looking to start fracking in the UK.

Cuadrilla - Cuadrilla is an oil and gas exploration and production company formed in 2007 and based in Staffordshire with an aim to ‘recover natural resources’. They are currently pioneering natural gas exploration in the country with a main focus on the Bowland Shale basin in Lancashire. They claim that all work conducted by the company is regulated by the DECC, EA and relevant local authorities. Cuadrilla recognises that there are environmental risks associated with drilling for natural gas and have a ‘Protecting OurEnvironment’ section on their website with explanations of current and future plans to reduce impacts. 

IGas - IGas Energy Plc is an independent oil and gas exploration and production company based in London, it is the leading onshore hydrocarbon producer in the UK. They operate the largest number of onshore oil and gas wells in the UK with focus in the East Midlands. Their aim: “At IGas we want to play our part in diversifying Britain’s energy mix and reducing our reliance on imported resources.”

Dart Energy -(worst website I’ve ever seen) Dart Energy is involved in exploration and production of unconventional hydrocarbons, such as shale gas and coal seam gas (CSG). It hopes to demonstrate the potential of shale gas in the UK, particularly based around the Bowland Shale basin in Lancashire. 

In early 2014 IGas and Dart Energy joined forces to become the UK’s largest energy company in order to untap Britain’s energy potential on a bigger scale. They now cover over one million acres of potential fracking land and hope that this move further strengthens the industry and makes fracking for shale gas more viable. 

Rathlin Energy - A company that focuses on exploration and development of oil and gas reserves in the UK. Their main locations are found in Yorkshire and Northern Ireland. 

Shale Energy PLC - Shale energy is an independent and conventional onshore oil and gas exploration company with a “strong focus on safety and environmental responsibility”.

Fracking in the News (Part 2)

Oil and gas companies have the right to frack on 30 million acres of public land in the US and are targeting200 million acres on top of this, most of which lies within national forests and state parks. This article by One Green Planet highlights what areas are at risk all across the country. It includes:

• Glacier National Park, Montana which is being surrounded by fracking sites using horizontal drilling techniques. 
• White River National Forest, Colorado which is being targeted for 250,000 acres of land to be given up for fracking despite it being the countries most visited National Forest.
• George Washington National Forest, Virginia where 17% of the land is being targeted despite 4 million people relying on the Potomac River for drinking water.

Former New York Governor George Pataki stated in a debate recently that the solution to climate change isn't more layers of government regulation but rather technological advances such as hydraulic fracturing. He argued that we need to focus on innovation and technology to reduce any further damage. It is true that the USA is the only country to have reduced it carbon emissions, but could this really be due to the fracking boom? Yes fracking releases less CO2 emissions than using other fossil fuels such as coal and oil but that is not the only variable related to climate change and there are other impacts that need to be considered. If we are focusing on improving technology why not push all that focus over to making renewables more viable which would lead to dramatic drops in CO2 emissions?

In June 2015 Lancashire country council refused permission for energy company Cuadrilla to start fracking and seismic monitoring at two sites - Roseacre Wood and Little Plumpton, which they have appealed. The appeal will be heard by Wendy McKay in February after which she will write up a report and hand it to the government so the Secretary of Statecan have the final say. Local people fear this means their opinion will not be heard or considered in the decision making due to the governments known determination to pursue fracking as a new alternative energy source.