City A.M: New regulator set to oversee shale licensing

The new oil and gas regulator created for the UK North Sea will also have powers over onshore activities, including shale gas, City A.M. has learnt.

In a bid to ensure security of supply and bring down energy costs, the government has been supportive of the conventional oil and gas sector and the burgeoning shale gas industry, introducing tax breaks for both.

The next onshore oil and gas licensing round, that will allow companies to bid for shale gas permits, is expected to take place this summer.

“The government agrees that the new Oil and Gas Authority’s remit should extend to onshore and we will consider this in more detail with the onshore industry, focusing on how the new authority should deal with the exploration and subsequent production phases of new unconventional – principally shale – resources,” said a spokesperson from the Department of Energy and Climate Change.
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