UKOOG Welcomes Move to Improve Land Access for Shale Gas Firms
Trade body the UK Onshore Operators Group (UKOOG) welcomed Friday proposals by the UK government to reform land access issues in a move designed to speed up the development of shale gas projects.
The government announced that it is launching a consultation on the proposals that would simplify procedures that are costly, time-consuming and disproportionate for new methods of underground drilling. It said that oil, gas and deep geothermal companies "will be able to explore their potential" and will, in return, provide a voluntary community payment for access.
The consultation will be open for 12 weeks, after which the government will announced its next steps.
The proposals are:
- Underground right of access for shale gas and deep geothermal operations below 1,000 feet.
- A voluntary community payment of GBP 20,000 ($34,000) per lateral well.
- A clear notification system to alert local people.
Announcing the proposals, UK Energy Minister Michael Fallon said:
"Britain needs more home-grown energy. Shale development will bring jobs and business opportunities.
"We are keen for shale and geothermal exploration to go ahead while protecting residents through the robust regulation that is in place.
"These proposals allow shale and geothermal development while offering a fair deal for communities in return for underground access at depths so deep they will have no negative impact on landowners."
Welcoming the report, UKOOG issued a statement in which it noted that horizontal drilling and hydraulic fracturing "are techniques that have been used extensively by the oil and gas industry in the UK and around the world for a number of decades" and that these techniques are used "typically at depths of one mile or greater, involving horizontal wells of between six and nine inches in diameter below the surface of the land". Consequently, UKOOG pointed out, landowners' "enjoyment of surface land is not impinged upon at all by this activity".
UKOOG Chief Executive Ken Cronin commented:
"The current legal treatment for land access for onshore oil and gas is not in line with other industries, will delay projects that are beneficial to the nation and create unnecessary costs. The onshore oil and gas industry continues to be focused on communicating properly at a local level and complying with a regulatory system that is considered one of the best in the world. It serves no one if access to much needed natural resources that lie deep below the surface of the UK is denied by a legal system that desperately needs updating."
Meanwhile, the government also announced Friday the publication of a new report by the British Geological Survey on shale gas resources in Great Britain. This report is based on an assessment of the resources of Jurassic shales in the Weald area of England and it concludes that there is unlikely to be any shale gas potential but that a reasonable central estimate for shale oil is 4.4 billion barrels.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ITEM Club: More Jobs Losses Expected in NE Scotland due to Oil Slump
- Shell Q&A: What Makes an Ideal Employer in Oil, Gas?
- Shell Takes First Place in Rigzone's Inaugural Ideal Employer Survey
- UK Government 'Must Recommit' to Oil, Gas Sector in Autumn Statement
- UK Government Gives Go-Ahead for Fracking in NW England
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Equinor Makes Discovery in North Sea
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension