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
Elk Range Royalties Makes Entry in Appalachia with Three-state Deal
2024-03-28 - NGP-backed Elk Range Royalties signed its first deal for mineral and royalty interests in Appalachia, including locations in Pennsylvania, Ohio and West Virginia.
E&P Highlights: Feb. 12, 2024
2024-02-12 - Here’s a roundup of the latest E&P headlines, including more hydrocarbons found offshore Namibia near the Venus discovery and a host of new contract awards.
Marketed: Paloma Natural Gas Eagle Ford Shale Opportunity in Frio County, Texas
2024-02-16 - Paloma Natural Gas has retained EnergyNet for the sale of a Eagle Ford/ Buda opportunity in Frio County, Texas.
Triangle Energy, JV Set to Drill in North Perth Basin
2024-04-18 - The Booth-1 prospect is planned to be the first well in the joint venture’s —Triangle Energy, Strike Energy and New Zealand Oil and Gas — upcoming drilling campaign.
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.