Lancashire fracking decision welcomed by OESG


The Onshore Energy Services Group (OESG) today welcomes the Lancashire fracking decision made by the Rt. Hon. Sajid Javid MP, Secretary of State for Communities and Local Government.

Commenting on the news, OESG co-founder Richard Sands said: “We are delighted to hear that, after a five year pause, shale gas exploration is set to resume in Lancashire, once again creating opportunities for British supply chain SMEs.

“A report by Ernst & Young in 2014 predicted that a successful shale gas industry could one day be responsible for over 64,500 jobs, of which 61% will be in the supply chain.

“We believe that the best way to maximise supply chain job creation is to ensure that small companies – which are much more likely to have to take on and train new people – get a chance to play a big role. We look forward to seeing Cuadrilla Resources develop a supply chain in which small companies from across Lancashire and beyond are given the opportunity to thrive.”

Fracking was suspended in Lancashire in 2011 after two small tremors were detected following exploration tests at Cuadrilla’s Preese Hall well.

Since then, every aspect of shale gas drilling has been subjected to intense scrutiny, with regulatory bodies concluding that it can proceed provided that it is adequately regulated and all work is performed to a high standard.

Existing British supply chain SMEs have decades of experience in planning and permitting, well design, drilling and completions, drilling waste management, environmental monitoring and management, and a host of other technical and scientific disciplines that enable those high standards.

Today’s Lancashire fracking decision means that they, and others, will now have a key role to play in demonstrating to the wider public that that shale gas wells can be brought into production efficiently and safely, in the same way that conventional oil and gas wells are, both onshore and offshore.

With North Sea gas production in decline, a new indigenous source of natural gas will help to reduce imports of expensive Liquefied Natural Gas from overseas, potentially making energy cheaper for British industry. A predicted requirement for over 12,600 km of steel casing worth over £2.3 billion, and more for a new rig manufacturing industry, could also provide fresh stimulus to the UKs struggling steel sector as part of a broader industrial strategy.