Cuadrilla Resources Ltd.’s plans to drill for shale gas in northwest England were rejected by local officials, the latest blow to the U.K. government’s ambitions for a domestic fracking industry, Bloomberg said.
Lancashire Council voted Monday against the company’s plans to drill at its Preston New Road site, according to the authority’s Twitter feed. Council officials had previously recommended drilling at the site be approved.
The rejection is also a setback for David Cameron’s government, which has sought to promote the nascent hydraulic fracturing industry by cutting taxes and relaxing planning rules to lower reliance on imported gas. That backing has been challenged by local communities, which fear that injecting chemically treated water into the ground will pollute the environment and cause earthquakes.
“This is a fantastic victory for the people of Lancashire, and the campaigners who have fought so hard to increase awareness of the dangers of fracking,” said Caroline Lucas, a U.K. lawmaker for the Green Party. “Today’s decision proves that, in spite of all the government’s efforts to force through fracking, local communities can prevent it from going ahead.”
Cuadrilla’s rejection is the latest sign that fracking may remain the preserve of U.S. drillers after Poland’s attempts to promote domestic shale-gas also foundered. Difficult geological conditions, fierce environmental opposition and the collapse of the oil price have stymied development of a fracking industry in Europe. Fracking involves blasting a mix of water, sand and chemicals into rock to release oil and gas.
Serious Setback
“The expectation must be that Cuadrilla will appeal this decision,” said John Williams, a consultant at Poyry Management Consulting. “However, this decision is a serious setback for shale gas in the U.K. and many must be wondering if it can ever reach production phase.”
The decision comes after the council last week rejected Cuadrilla’s plans for a well at the nearby Roseacre site and is the latest in a series of blows to the company. Cuadrilla was forced to scale back drilling proposals earlier this year after council planners opposed its applications for eight wells at the two sites, citing concerns over noise and traffic.
Cuadrilla said it was “surprised and disappointed” by the council’s ruling, according to a statement on its website.
Recommended Reading
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Sitio Royalties Dives Deeper in D-J with $150MM Acquisition
2024-02-29 - Sitio Royalties is deepening its roots in the D-J Basin with a $150 million acquisition—citing regulatory certainty over future development activity in Colorado.