Among those companies which have won the 27 licences is Cuadrilla, which is appealing against two refused applications to frack for shale gas in Lancashire and which has secured a licence for a new area between Barnsley and Doncaster.
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No. Although most companies want licences in order to look for shale gas and oil, some might want to use conventional drilling techniques for oil and gas that is easier to extract.
In order to frack, a company doesn’t only need a licence, it also requires planning permission and environmental permitting.
OGA will announce winners for 132 further blocks in the second lot of the 14th onshore oil and gas licensing round later in the year, following an ongoing consultation.
“Over 2,000 onshore oil and gas wells have been drilled in the UK, and 120 are now operational, yet few people realise these sites are even there”, he said.
Andy Samuel, chief executive of the OGA said the latest onshore round of applications for licences had attracted significant interest. Subject to the outcome of that consultation, the OGA will announce offers for the second group of licence blocks later in the year.
UK Energy Minister Lord Bourne said that onshore oil and gas – often recovered by fracking – would “play a key part in providing secure and reliable energy to UK homes and businesses for decades to come”.
Richard Warren, senior energy policy adviser at EEF, the manufacturers’ organisation said the move, following on from the planning announcement, confirmed the Government was serious about shale and was getting to grips with the issue. Lord Bourne specified that investment in shale in Britain could be as much as £33 billion and support 64,000 jobs.
But environmental campaigners criticised the decision.
Andrew Pendleton, Friends Of The Earth head of campaigns, said: “Opening up huge swathes of Northern England to a fracking blitz will only provoke more anger and controversy, because wherever fracking has been proposed, it has been opposed by local people”.
“The Government’s own report into the rural economy impacts of fracking highlights a myriad of concerns, including a drop in house prices, impacts on tourism, and increased noise and traffic congestion – not to mention local environment and climate risks”.
Greenpeace has estimated that around 30 miles of the Peak District could be fracked and the RSPB has said that blocks of land offered to fracking companies include a nature reserves in Dearne Valley.
Oil & Gas Authority, the industry regulator, said nothing should be read into the absence of the South – while the Government pointed out that southern areas are under consideration for future licences.
Previously, North East MPs Mary Glindon and Ian Mearns have called on the Prime Minister to ensure that local decisions on fracking are not overturned by national government.
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It is big jump in US production, which is now hovering above 9.5 million barrels/day, slightly behind Saudi Arabia and Russian Federation.
