Thursday, September 22, 2011

U.K. Now on Shale Gas Map

Cuadrilla Resources has announced a major shale gas find in Lancashire estimated to contain 200 Tcf, with about 20% being recoverable.  The formation apparently is fairly narrow but very thick.  Various analysts estimate that production from the field once it gets going could allow Britain to cease importing foreign natural gas.

This is pretty big news, but it will be accompanied by the inevitable fearmongering from the anti-hydraulic fracturing folks.  It will be interesting to watch the debate play out in another country, especially one that is dependent on imports of foreign natural gas.  While this field will cause little more than a ripple (maybe a light wake) in the global supply/demand for natural gas, it will be a great case study to see how new natural gas supply impacts a market where natural gas prices are significantly higher.

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