Coordinated Strategy and Flawless Operations Will Sustain UK Shale Gas Success
The success of the nascent UK shale industry depends on the ability of operators and politicians to move together, avoiding detrimental frictions and dangerous mistakes in order to send a clear message to investors and local communities. That was the general message of the second day of the conference “UK shale 2013 – Making it happen” that took place in London on Wednesday and Thursday.
“There is a momentum growing at the moment in Government and in Parliament,” stated Dan Byles, MP for North Warwickshire and Bedworth and chairman of the all-party parliamentary group for unconventional oil and gas.
According to Byles, politicians and industry have to work together to drill the first wells. This will be the only way to sweep off population’s fears, demonstrating that shale gas wells can be good neighbours to local communities.
“All things are looking very positive, (but) we do still have a long way to go. We have just heard the question mark over 20-40 wells in the next few years. That is a phenomenal optimistic figure, I would say… We still have not drilled one single additional well since the conference last year. Now I am relatively optimistic that by the time of the next year conference we will have drilled some more wells. How many I don’t know,” said Byles, illustrating also the dangers the industry has to face to move on.
The chairman of the all-party parliamentary group for unconventional oil and gas spoke about “a substantial lobby” that is fundamentally opposed to shale gas, adding that this scepticism needs a brave support of politicians and an impeccable effort by operators.
“An accident somewhere is an accident everywhere,” said Byles, asking operators to work at the highest standard and accept the efforts of the government to set up a strong legislation to assure the safety UK industry needs to be accepted.
Operators and consultants agree on coordinated efforts
“In order to advance this, we have got to demonstrate unequivocally that we conduct these operations in a safe, responsible, environmentally acceptable manner. And ultimately we have got to build the trust of local communities,” stated John Blaymires, Chief Operating Officer at IGas Energy.
Blaymires said that IGas and other companies are aware of the need to reassure population and gain public acceptance, proving every day that the industry has the know-how to explore and produce safely. This is central for the success of shale gas.
“If we don’t secure the social license to operate, it doesn’t matter how good we are technically … we would struggle to make it work,” said Blaymires, adding that the industry has all the cards to win the public acceptance.
“We are professional and competent operators,” concluded Blaymires.
Consultants agreed on the general message of politicians and operators.
“You are dealing with people’s fears… You have to listen to your audiences and hear what they are saying and develop a process that works for you to manage this. You have to be really proactive,” said Alistar Billington, technical director at ERM, global provider of environmental, health, safety, risk, and social consulting services.
Billington confirmed the need to work together and collaborate with all the stakeholders in order to familiarize people with issues they might misperceive. This is the recipe to avoid eroding value and boosting confidence. The confidence the industry needs to move on.
Sergio Matalucci