UK opens licensing round for onshore oil & gas drilling

In a statement, the department of energy and climate change (DECC) said it has given details to companies on how to apply for licences which will enable them to start initial exploration for shale gas.

Newly appointed business and energy minister Matthew Hancock said unlocking the UK’s shale gas potential could help enhance security of supply.

“As one of the cleanest fossil fuels, shale gas can be a key part of the UK’s answer to climate change and a bridge to a much greener future,” Hancock said.

He added: “Ultimately, done right, speeding up shale will mean more jobs and opportunities for people and help ensure long-term economic and energy security for our country.”

The government was quick to add that the tender is only a “first step” which does not give absolute agreement to drilling.

“On top of a licence, any further drilling application will then require planning permission, as well as permits from the Environment Agency and sign-off from the Health and Safety Executive,” DECC said.

The development of the UK’s nascent shale extraction industry has been mired in strong local opposition, and concern over potential environmental risk including earth tremors and water table contamination.

Although Greenpeace activists say that the government has a fired the starting gun on a “reckless race for shale”, the government says it will require detailed statements of environmental awareness to be submitted with licence applications for natural reserve areas and world heritage sites “to demonstrate applicants’ understanding of the environmental sensitivities relevant to the area proposed”.

“We recognise there are areas of outstanding landscape and scenic beauty where the environmental and heritage qualities need to be carefully balanced against the benefits of oil and gas from unconventional hydrocarbons,” said communities minister Lord Ahmad of Wimbledon.

“Effective exploration and testing of the UK’s unconventional gas resources is key to understanding the potential for this industry – so the government is creating the right framework to accelerate unconventional oil and gas development in a responsible and sustainable way,” Ahmad added.