April 28, 2024

British Village Protests Plan for Shale Gas Drilling

What brought them together on Thursday evening, though, was not a spring fair but deep worry. Cuadrilla Resources, a British energy company, is on the verge of drilling an exploratory oil well just down the road. Villagers see it as a possible precursor to the environmentally controversial drilling technique known as hydraulic fracturing, or fracking.

“Don’t frack my future,” read the children’s T-shirts as the youths munched on chocolate cupcakes.

The villagers “are going through the grief process; they have just been told they have cancer,” said Alison Stevenson, chairwoman of the Balcombe Parish Council, a local government body. A recent survey conducted by the parish council found that more than 80 percent of the 284 respondents wanted the council to oppose fracking.

The protest was in keeping with the steady resistance that oil and gas companies, and the governments that approve their exploration, are facing as they try to tap underground rock deposits in populated areas to extract fossil fuels. The Balcombe site is limestone, but Cuadrilla and energy companies elsewhere are using similar drilling techniques in efforts to produce oil and natural gas from shale rock.

Although shale gas extraction has created an energy boom in the United States, many Europeans have been reluctant to accept the technology on concerns that it could contaminate groundwater and encourage continued reliance on carbon-emitting fossil fuels.

Balcombe, with about 1,800 residents, is no hotbed of radicalism. It is in the Conservative Party’s heartland, about a half-hour’s train ride south of London. It is represented in Parliament by Francis Maude, a cabinet minister.

But residents say their opposition to fracking, the process of pumping large quantities of liquid, sand and other substances to release gas trapped inside rocks, is not being heard in official circles.

“This is naturally a very conservative, wealthy village,” said Lawrence Dunne, a physics professor who lives here. “But we feel the government is completely ignoring us.”

On this evening, Cuadrilla, the company that is spearheading shale gas development in Britain, was trying to listen. In a former church known as Bramble Hall, the company held a “drop-in session” for local residents.

Several Cuadrilla executives accompanied by an entourage of public relations aides talked to small groups of residents, who were joined by environmental activists from London and the surrounding area.

Francis Egan, Cuadrilla’s chief executive, called the gathering, which attracted more than 200 people and lasted more than four hours, “really, really valuable.” The encounter gave people “an opportunity to hear from us what we are doing” rather than what they “read on the Internet,” he said.

He and other European business leaders who advocate shale gas development are envious of the head start achieved by their American counterparts. But they know that on this side of the Atlantic, fears of pollution run so deep in the grass roots that local and national politicians are hesitant to endorse drilling.

France has a ban on fracking, and Germany is unlikely to give it a green light until after the coming elections. The British government views shale gas as a possible replacement for the declining energy reserves in the North Sea, but those intentions have been slow to translate into action. It is unlikely that there will be any shale gas fracking in Britain this year.

On Thursday, Balcombe was a microcosm of European concerns. Many minds seemed already set against the energy company — a result, some local people said, of heavy campaigning by opponents of fracking.

This article has been revised to reflect the following correction:

Correction: May 25, 2013

Because of an editing error, an earlier version of this article referred erroneously to the type of exploratory well Cuadrilla Resources, a proponent of shale gas development, intends to drill in Balcombe, England. It is an oil well, not a shale gas well — although the drilling techniques that may be employed are the same ones energy companies typically use to extract shale gas.

Article source: http://www.nytimes.com/2013/05/25/business/global/british-village-protests-plan-for-shale-gas-drilling.html?partner=rss&emc=rss

Ukraine Signs Drilling Deal With Shell for Shale Gas

The company’s chief executive, Peter Voser, and the Ukrainian president, Viktor F. Yanukovich, signed a production agreement Thursday for the potentially prolific Yuzivska gas field in the eastern part of the country. The signing took place at the World Economic Forum in Davos, Switzerland.

Winning an active Shell drilling program is a potential boon for Ukraine, which is thought to be one of the best bets in Europe for so-called shale gas and tight gas. Such gas, found in porous underground shale rock, is usually withdrawn through the process known as hydraulic fracturing, or fracking. The technique is controversial, because of the potential environmental effects, but Ukraine is more politically receptive to it than some other countries.

The project could also give momentum to unconventional gas extraction in Europe, which lags far behind the United States in this sector.

“All the big boys are there,” said Menno Koch, an analyst at Lambert Energy Advisory in London, speaking of Ukraine. “They see the huge potential of the country.”

Shell has bet heavily on gas globally and wants to make sure it has an entree into any important new production area. Moving into Ukraine would give it access to another potentially significant production area, alongside its efforts in China, South Africa, Canada and Brazil, said Iain Pyle, an analyst at Bernstein Research in London.

Europe is widely thought to have substantial shale gas and related tight gas potential, but it is moving far slower than the United States to scope out and develop its resources. Analysts figure the Continent is 5 to 10 years behind the United States in shale gas development and is unlikely to ever achieve the same scale.

Shell plans to drill 15 wells as part of a 50-year joint venture with a local company called Nadra Yuzivska. It would be the latest in a series of steps ahead for unconventional gas development in Europe.

In December, the British government gave a cautious green light to shale gas exploration. Cuadrilla Resources, a British company backed by the U.S. private equity firm Riverstone Holdings and whose chairman is John Browne, the former chief of BP, says it is planning to seek new permits for hydraulic fracturing at a well near the resort town of Blackpool, England.

Cuadrilla, which has a large swathe of acreage in the area, was ordered to halt most exploration after fracking at one of its wells caused minor earthquakes in 2011.

Drilling for shale gas in densely populated, wealthy West European countries like Britain is a hard sell. Residents worry about potential water pollution from fracking and the disruption and noise of an industry that requires large numbers of wells.

The oil and gas industry is betting that former Soviet states and satellites like Poland and Ukraine, which are heavily dependent on gas imports from Russia, will be more receptive politically to shale gas exploration and fracking. Ukraine has a particular incentive to develop its own gas resources because in recent years it has twice suffered cutoffs from Russia during disputes.

During a recent interview, Paolo Scaroni, chief executive of the Italian energy company Eni, which is emerging as a major player in natural gas, said he was doubtful about unconventional gas prospects in Western Europe. But “we are extremely active in Poland and Ukraine,” Mr. Scaroni said.

Shell’s Ukraine contract covers the Yuzivska field in the Kharkiv and Donetsk regions. The Ukrainian prime minister, Mykola Azarov, says on the government’s Web site that the area could contain as much as 113 billion cubic meters, or 4 trillion cubic feet, of gas, nearly as much as the confirmed gas reserves of Algeria, a large gas exporter.

It remains to be seen how much if any of the Ukraine gas is recoverable. The government said on its Web site that Shell’s development area could produce 8 to 11 billion cubic meters of gas annually. That would be around 20 percent of Ukraine’s consumption.

Chevron is negotiating for shale gas acreage in Ukraine and is drilling in Poland. The local councils in Ukraine have so far declined to approve Chevron’s deal, though, prompting displeasure from the central government. The local authorities in Shell’s area have approved development.

Article source: http://www.nytimes.com/2013/01/25/business/global/ukraine-signs-drilling-deal-with-shell-for-shale-gas.html?partner=rss&emc=rss