UK Government Needs To Streamline Laws If It Wants Shale To Happen

Complex approval processes could hinder shale gas production in the United Kingdom, according to consultancy Poyry in a report released on Monday. 

‘Industry, government and regulatory authorities should ensure that the institutional capacity is in place to make the approvals process efficient so that the potential benefits of shale gas can be realised,’ reads the note.

According to the analysis, a significant production from the Bowland shale depends on an efficient regulatory framework, the development of the onshore supply chain, successful results of the exploratory drilling, favourable economics and achieving the social license to operate. 

The consultancy positively hailed shale gas, saying that ‘the UK’s import dependency, as a result of shale gas production from Cuadrilla’s licence area alone, could reduce from 89% to 78% in 2035.’

The company argues in favour of shale gas, calling on the government to streamline procedures.

"If the regulatory and permitting process is not made more efficient, then it may not be possible to achieve shale gas production at any scale," Poyry analysts said in the report, which was also given to members of the economics committee in the House of Lords, parliament's second chamber, last week. 

The consulting firm estimated that it could take around 6-8 years for a gas company to start commercial production from the moment it was awarded the licence. But this would not include any judicial reviews or legal challenges, which seems more than likely in the United Kingdom given the opposition of local communities.