Analysts Bearish on UK Shale Prospects
Analysts at Fitch Solutions Macro Research have announced that they remain “widely bearish” on the prospects of UK shale gas in a new report.
“Despite hydraulic fracturing of two wells expected within days, the first fracturing in the UK for seven years, we remain widely bearish on the prospects of UK shale gas,” the analysts stated in the report, which was sent to Rigzone.
“For shale gas to be commercially produced in the UK, extensive drilling work must be carried out to better understand the potential resource base, the social and political scope for which we believe remains small,” the analysts added.
“The proposed review of regulation of shale drilling and fracking regulation is likely to prompt a significant political and social fallout. Subsequently, we do not expect the proposed measures to offer much upside to the development of the unconventional sector in the UK,” the analysts continued.
Cuadrilla announced Friday that it expects to start hydraulically fracturing the shale rock around the first of its two horizontal shale gas exploration wells at its UK Preston New Road site in Lancashire in the next week.
The company currently has eight sites, including Preston New Road, in its Lancashire Bowland shale gas exploration license area, according to its website. Cuadrilla states on its website that it believes “at least” 200 trillion cubic feet of natural gas is trapped in the shale rock in its license area.
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