UK Body Publishes Report on Carbon Threat from Shale Gas

A report by the UK's Climate Change Committee published July 7 has found that exploiting shale gas by fracking on a significant scale is not compatible with UK climate targets unless three tests are met. These apply to limiting well-head emissions at both ends of the life-cycle and close monitoring; avoidance of sites that could lead to greater emissions if turned into shale gas production sites such as peaty ground; and UK gas consumption being at a level that is in line with carbon budget requirements.

That last point means that UK shale gas production must displace imported gas rather than meet a growing demand for gas.

The overall emissions footprint of UK shale gas, if tightly regulated, is likely to be broadly similar to that of imported gas. Tightly regulated domestic production may provide a small emissions saving when displacing imports of liquefied natural gas (LNG), the report found, but it might also displace coal. The CCC, a statutory advisory body to the government, plans to publish analysis and views of this issue in the summer of 2016 alongside its advice to the Scottish Government on unconventional oil and gas.

The front cover of the CCC's report, Onshore Petroleum (Photo source: The CCC)

UK Onshore Oil & Gas (UKOOG), the trade association for the onshore oil and gas industry and supply chain, welcomed the report, which states that “shale gas could make a useful contribution to UK energy supplies, including providing some energy security benefits.”

UKOOG chair Professor Averil Macdonald said the report "confirms what we have long maintained – that shale gas production is compatible with the country’s need to reduce emissions. The report also shows that shale gas has lower lifecycle emissions than imported LNG. As an industry, we look forward to continuing to work proactively with regulators to minimise fugitive emissions from our operations.”

UKOOG noted that under the higher shale gas production scenario and the lowest gas demand scenario in the CCC report, the UK is still a small net importer of gas. With North Sea production declining, there is considerable room for shale gas to replace imported gas.

It said: “The National Grid, in its UK Future Energy Scenarios report, stated this week that the UK could be importing 93% of its gas by 2040 if domestic development stalls. The report also states that the cheapest way to create low-carbon hydrogen is from gas with carbon capture and storage, and we fully support efforts to develop this technology.”

Under the Infrastructure Act (2015), the CCC has a duty to advise the government on the compatibility of exploiting domestic onshore petroleum, which includes shale gas, with UK carbon budgets and the country's 2050 emissions reduction target.

William Powell | www.naturalgaseurope.com