- UK’s shale gas resources are estimated to have sufficient amounts to reverse its growing reliance on imports.
- Only a handful of wells have been drilled to determine the quantity of gas that can be extracted.
- Only one well has been fracked.
- UK government will use shale gas exploration as a means to increase revenues.
- UK government have implemented significant tax cuts for firms wanting to participate.
- UK government is preparing for an onshore licensing round later in 2014, which is likely to bring in the ‘big boys’ and ‘major players’ in this growing industry, including U.S. based shale exploration firms.
- The licensing round will access approximately 39,000 square miles of prospects.
- 50 to 150 new licenses are estimated to be issued to companies seeking to develop onshore unconventional hydrocarbon resources.
- These initiatives are likely to have come too late ‘in the game’ for the UK to achieve the type of returns and growth that we have seen in the US, but will no doubt enable the UK to diversify its energy strategy in the next 5 – 10 years.