The U.S. shale boom, brought to fruition by updated fracking technologies, made the country a major oil and gas producer, even surpassing Russia and Saudi Arabia for a time. It also dramatically increased domestic energy independence, since both oil and gas imports were less necessary.
Now, the United Kingdom is looking for the same level of independence from energy imports. And its using the U.S. as a model.
Last year, CEO of British utility Centrica Sam Laidlaw stated, “By 2020 we will be reliant on imports to meet 70 percent of the country’s gas needs,” after citing a 38% loss in North Sea oil and gas production.
Of course, the current glut plaguing the oil and gas industries have made for highly volatile trades, especially from the major European suppliers in the Middle East and Russia.
As you can imagine, the main problem right now boils down to public opinion on hyrdaulic fracturing, which has made drilling into shale an economical venture over the last decade.
Local councils have been given the power to approve or deny fracking exploration projects, and so far none have gone through.
You know the problems being blamed on hydraulic fracturing just as well as I do: earthquakes, water contamination, noise, and destruction of natural beauty.
But make no mistake, the U.K. government intends to begin fracking despite these arguments. Already, 27 onshore oil and gas blocks have been offered directly by government approval, and another 132 will be available after environmental assessments.
What’s more, they government has promised to fast-track exploration permits by upholding a 16-week decision period.
Amber Rudd, Energy and Climate Change Secretary, asserts that the growth of the industry will rely on getting exploration underway without applications being “dragged out for months, or even years on end.”
If U.K. shale drillers can afford to produce in the current low-price market, the shale industry may offer the country a decent level of energy security.
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Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
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