Officials in northern England approved a shale gas hydraulic fracturing (fracking) application from Third Energy on May 23 in a shift indicating growing support for shale gas that Britain's government hopes can counter the decline in North Sea output. Councillors at North Yorkshire County Council voted in favor of the application 7 to 4 after two days of hearings.
"This has been a very difficult decision for the Council to make and we know it is a difficult decision for the people of this county," Richard Flinton, North Yorkshire County Council's chief executive, said.
Rasik Valand, CEO of Third Energy, said "this approval is not as a victory, but is a huge responsibility. We will have to deliver on our commitment, made to the committee and to the people of Ryedale, to undertake this operation safely and without impacting on the local environment."
With permission to carry out fracking, Third Energy will now be able to test how much shale gas it could eventually produce from its site at Kirby Misperton.
"This is an absolute travesty of a decision but the battle is very far from over," said Simon Bowens, Yorkshire and Humber campaigner for Friends of the Earth.
Third Energy is 97% owned by Barclay's Global Natural Resources Investments.
The approval gives a boost to Britain's shale gas industry nearly a year after local government officials in Lancashire rejected two permits for shale gas firm Cuadrilla to operate. Progress has essentially been brought to a standstill.
Cuadrilla has appealed against the decision and the government has since changed the rules to be able to approve shale gas permits at government level. Cuadrilla said if its permits receive government approval this summer, first shale gas from its wells could hit the British market in mid-2017.
Britain is estimated to have substantial amounts of shale gas trapped in underground rocks, and Prime Minister David Cameron has pledged to go all out to extract these reserves.
Recommended Reading
Hess Corp. Boosts Bakken Output, Drilling Ahead of Chevron Merger
2024-01-31 - Hess Corp. increased its drilling activity and output from the Bakken play of North Dakota during the fourth quarter, the E&P reported in its latest earnings.
Petrie Partners: A Small Wonder
2024-02-01 - Petrie Partners may not be the biggest or flashiest investment bank on the block, but after over two decades, its executives have been around the block more than most.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Endeavor Integration Brings Capital Efficiency, Durability to Diamondback
2024-02-22 - The combined Diamondback-Endeavor deal is expected to realize $3 billion in synergies and have 12 years of sub-$40/bbl breakeven inventory.
Exxon, Chevron Tapping Permian for Output Growth in ‘24
2024-02-02 - Exxon Mobil and Chevron plan to tap West Texas and New Mexico for oil and gas production growth in 2024, the U.S. majors reported in their latest earnings.