Britain’s exit from the European Union (EU) could push forward hydraulic fracturing (fracking) exploration and the development of a shale gas industry in the UK, Kallanish Energy learns.
Since the Brexit vote, the pound has dropped roughly 11% and currency weakness has made it more expensive to import gas. Without a domestic gas production, the UK is posed to struggle with energy security, as the country will need to import 93% of its gas by 2040, according to National Grid.
Onshore gas producer IGas’ CEO, Stephen Bowler, told Reuters Brexit made the case for shale more vital, given an “independent Britain needs an independent supply of energy. Security of supply becomes even more important now.”
The idea that fracking could benefit from Brexit is also shared by opponents to the exploration method. “Weak and patchy as they are, the UK’s fracking regulations could be even worse without the bedrock provided by over a dozen separate EU directives,” said Hannah Martin, energy campaigner at Greenpeace.
“If Britain leaves the EU, this last bulwark of environmental protection would be at the mercy of a government that has stopped at nothing to help the fracking industry,” she added.
The referendum, which added economic uncertainty not only within Europe but globally, has resulted in a government reshuffle in the UK. Theresa May, the new prime minister, has previously shown support to fracking and shale exploration. On Monday, she said she wanted to see “an energy policy that emphasizes the reliability of supply and lower costs for users.”
Some sources believe her leadership and Brexit will be positive for unconventional exploration and production in the UK, but progress must be made sooner than later.
“The Conservative government has been supportive of shale gas development, and we believe that this support will continue. The EU Referendum result emphasizes the need for the UK to secure home grown energy sources,” Corin Taylor, director of UKOOG (UK Onshore Oil and Gas) told Kallanish Energy.
Energy consultant and shale investor, Nick Grealy, said “with Brexit, it would make more sense than ever to develop domestic resources and ensure energy security… They [government] have to hurry up.”
He believes a way to speed up the process would be awarding new onshore oil and gas exploration licenses. “Let the government put the money where their mouth is and open up a 15th onshore licensing round this year,” he said.
