Oral Answers to Questions
Debate between Charles Hendry and Glyn Davies
Glyn Davies (Montgomeryshire) (Con)
13. What recent assessment he has made of the prospects for shale gas in the UK.
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
Exploration for shale gas in the UK has only recently started, and it will be some years before the prospects for production in our geological, regulatory and economic conditions, and the economic prospects for the industry, can be fully assessed. However, a British Geological Survey study last year estimated that UK shales might yield some 150 billion cubic metres of gas—equivalent to roughly two years’ demand. Work is in hand to update these geological estimates in the light of more recent information, including Cuadrilla’s estimate of gas in place under its licences in Lancashire.
Glyn Davies
Media reports in the US state that shale gas discoveries have reinvigorated US oil and gas production. There have been substantial discoveries of shale gas in the UK, as the Minister mentioned, so does he agree that the UK could learn lessons from the US experience with a view to developing shale gas in the UK?
Charles Hendry
My hon. Friend is right to point to the lessons from the United States. Shale gas has transformed the energy outlook there and potentially turned the US from a gas importer to a gas exporter. There might be lessons to learn, but there are very different rules here on land ownership that will make things much more complicated. We are a much more densely populated area, and other countries such as Poland and elsewhere are clearly attracting interest in this connection, but we will explore the matter. There are no barriers to doing so but nevertheless we recognise the limitations.