UK Prepares for Hydraulic Fracturing

The suspension of hydraulic fracturing activities in the United Kingdom is expected to be lifted this week.

Reports indicate that a green light for the continuation for the controvesial procedure used in the development of shale gas resources will be contained in the Autumn Statement to be provided by Chancellor of Exchequer George Osbourne.

Osborne is also expected to announce the establishment of a new body, the Office of Shale Gas, that would oversee the development of the the unconventional gas resource.

The UK government is also expected to introduce tax breaks for companies involved in shale gas extraction in hopes that increased domestic production will positively impact natural gas prices for consumers.

The temporary halt in fracking was put in place after earth tremors in April and May 2011 were linked to drilling activities by Cuadrilla Resources. Cuadrilla has reported a find in Lancashire that is estimated to contain 200 trillion cubic feet of natural gas. 

In April of this year, a report by government commissioned panel of independent scientists concluded that fracking should be allowed to produce under strict procedures.

Speaking to the Sunday Telegraph, Cuadrilla chief executive Francis Egan said that a postive decision from the government could lead to shale gas production as early as March of next year.

Egan said that Cuadrilla could supply a quarter of UK's annual gas requirements. However the Cuadrilla executive cautioned that clarity was required in the near term.

Noting that in the three year period that Cuadrilla had been active in its shale gas search, 60,000 wells had been drilled in the US.

"We don't have infinite patience," commented Egan. Watch the interview with Francis Egan here.

Reports indicate that shale gas reserves in the UK are far greater than originally thought.