UK opens bidding round for shale gas

The UK government opened on Monday the bidding process for companies seeking licences to explore for onshore oil and gas.

Business and Energy Minister Matthew Hancock published details of how companies can apply for licences which will enable them to start initial exploration for shale gas.

The licences provide the first step to starting drilling – but do not give absolute agreement to drill. On top of a licence, any further drilling application will then require planning permission, as well as permits from the Environment Agency and sign-off from the Health and Safety Executive.

Minister Matthew Hancock said: “Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth. We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy. As one of the cleanest fossil fuels, shale gas can be a key part of the UK’s answer to climate change and a bridge to a much greener future.”

“The new guidance published today will protect Britain’s great national parks and outstanding landscapes. Building on the existing rules that ensure operational best practices are implemented and robustly enforced. Ultimately, done right, speeding up shale will mean more jobs and opportunities for people and help ensure long-term economic and energy security for our country,” he added.