Following news of the UK reportedly sitting on deposits that could hold at least 1,300 trillion cubic feet (tcf) of gas, KPMG have commented on the report.
Emma Wild, Head of KPMG’s Upstream Advisory practice comments on this week’s announcement that the UK shale gas resources may be greater than previously thought.
She said, “While the estimated increase in shale gas reserves published by the Geological Society is certainly encouraging news, it is important to remember that this refers to technically recoverable volumes and not to commercially recoverable gas from shale.”
“Additional clarity around regulation is expected in July. This may well help to streamline the process for operations in the UK and will undoubtedly be welcome by all key industry players.”
“Additionally the commitment of the industry trade body UKOOG, to engage with and compensate local communities, should go some way to increase activity levels in the UK.”
“What has not been addressed in today’s statement is the high cost of operating in the UK, the availability of alternative sources of gas supply for UK power and how these factors contribute to shale gas commerciality. Therefore the likelihood of large scale developments remains uncertain.”