What is fracking?

The term is shorthand for “hydraulic fracturing”, a method of extracting oil and gas from the ground.

The process involves drilling a well then pumping water, sand and chemicals down it at high pressure. This fractures the rock, helping to extract the oil and gas within it. Fracking for oil and gas trapped in “shale” rocks is a new process in Britain.

But another, less intensive form of fracking – involving less water and fewer chemicals – has been going on for decades to help extract oil and gas from other types of rocks. About 200 wells of this kind have been fracked in Britain to date.

What benefits are promised for shale gas fracking?

In June the United Kingdom Onshore Operators Group launched a “Shale Community Engagement Charter”. This promised local communities £100,000 per shale site where fracking takes place during exploratory drilling, and then a 1pc share of the revenues if the drilling succeeds and the company begins producing gas or oil.

This could be worth between £5-10 million for each community over 25 years, especially in the first 10 years when production is highest. The total benefits could be worth more than £1.1 billion across the UK over that period.  MORE