UK onshore oil and gas companies today welcomed a decision by the government to commission a new investigation into the science behind shale gas and fracking.
The controversial hydraulic stimulation and blasting production method has effectively been banned in the UK since 2019 due to the difficulty in predicting potential earthquakes stemming from its use.
In a statement, the Department for Business, Energy and Industrial Strategy said: “While shale gas extraction is not the solution to near-term price issues, it is right that all possible energy generation and production methods are kept on the table following the unprovoked invasion of Ukraine by President Putin’s regime."
The British Geological Survey will carry out the investigation with a remit to look at new fracking developments since 2019 and also if the modelling of shale geologies, to better predict earthquakes, has improved.
It was tremors at a site near Blackpool that caused the original restrictions to be put in place in 2019, but the BGS will also look at areas outside of Lancashire that potentially might be more amenable.
Hydraulic stimulation or fracking is where substances are injected into underground rocks under high pressure to break open cracks and release gas or oil trapped within.
Kwarteng said: “We have always been, and always will be, guided by the science on shale gas.
“In light of Putin’s criminal invasion of Ukraine, it is absolutely right that we explore all possible domestic energy sources.
“However, unless the latest scientific evidence demonstrates that shale gas extraction is safe, sustainable and of minimal disturbance to those living and working nearby, the pause in England will remain in place.”
Stephen Bowler, chief executive of IGas Energy, PLC, which has substantial shale interests in the Midlands and North, said: "This is a significant development by the Government and we welcome the opportunity to demonstrate how shale gas can provide safe, secure and affordable energy for the UK.
“UK shale gas resources can replace imports, reduce prices, boost the country's tax revenues, and lead to job creation in areas where they are most needed to support the Government's levelling up agenda."
IGas shares jumped 14% 44p.