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| Fracking Still Controversial in Europe | Fracking Still Controversial in Europe |
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| ST. ANNES, ENGLAND — Just outside Blackpool, a town of faded cabarets and amusement rides on the Irish Sea, a drilling rig sits in a muddy farm field. The big white and yellow machine represents the latest attempt by Cuadrilla Resources to see if it can bring Northwest England the sort of shale gas revolution that has transformed the U.S. energy picture. | ST. ANNES, ENGLAND — Just outside Blackpool, a town of faded cabarets and amusement rides on the Irish Sea, a drilling rig sits in a muddy farm field. The big white and yellow machine represents the latest attempt by Cuadrilla Resources to see if it can bring Northwest England the sort of shale gas revolution that has transformed the U.S. energy picture. |
| Cuadrilla’s chief executive, Francis Egan, who joined the company four months ago after a career spent in the international oil industry at giants like Marathon and BHP Billiton, says that Cuadrilla believes there is 200 trillion cubic feet of gas beneath the company’s 900-square-kilometer, or 348-square-mile, concession in the area. | Cuadrilla’s chief executive, Francis Egan, who joined the company four months ago after a career spent in the international oil industry at giants like Marathon and BHP Billiton, says that Cuadrilla believes there is 200 trillion cubic feet of gas beneath the company’s 900-square-kilometer, or 348-square-mile, concession in the area. |
| “That is a huge amount of gas,” he says. Even if only 10 percent were extractable, it would be enough to fuel Britain’s current consumption for about seven years. | “That is a huge amount of gas,” he says. Even if only 10 percent were extractable, it would be enough to fuel Britain’s current consumption for about seven years. |
| Britain is one of several European countries where experts think there could be commercially exploitable shale gas. The U.S. Energy Information Administration estimates that there may be as much as 600 trillion cubic feet of recoverable shale gas in Europe, or about 40 years’ consumption. | Britain is one of several European countries where experts think there could be commercially exploitable shale gas. The U.S. Energy Information Administration estimates that there may be as much as 600 trillion cubic feet of recoverable shale gas in Europe, or about 40 years’ consumption. |
| But there is still uncertainty about whether significant volumes of gas can be produced in Europe through drilling and hydraulic fracturing, or fracking, as has been done in the United States. The industry is barely getting started in Europe, but opposition is already strong. | But there is still uncertainty about whether significant volumes of gas can be produced in Europe through drilling and hydraulic fracturing, or fracking, as has been done in the United States. The industry is barely getting started in Europe, but opposition is already strong. |
| Countries including France have banned fracking, the process of breaking up dense shale to free the natural gas. | Countries including France have banned fracking, the process of breaking up dense shale to free the natural gas. |
| Environmentalists, as well as many people living near possible shale gas sites, worry about the huge quantities of water that fracking uses. They also fear that shale gas will prolong the fossil fuel era by reducing the incentive to switch to cleaner but more expensive energy sources like solar and wind. | Environmentalists, as well as many people living near possible shale gas sites, worry about the huge quantities of water that fracking uses. They also fear that shale gas will prolong the fossil fuel era by reducing the incentive to switch to cleaner but more expensive energy sources like solar and wind. |
| Cuadrilla’s efforts in Britain are being closely watched as a test case. The company is backed by a leading U.S. energy private equity firm, Riverstone Holdings, which owns a 41 percent stake. John Browne, a former chief executive of BP and now Riverstone’s chief in Europe as well as Cuadrilla’s chairman, still enjoys great prestige in Britain. | Cuadrilla’s efforts in Britain are being closely watched as a test case. The company is backed by a leading U.S. energy private equity firm, Riverstone Holdings, which owns a 41 percent stake. John Browne, a former chief executive of BP and now Riverstone’s chief in Europe as well as Cuadrilla’s chairman, still enjoys great prestige in Britain. |
| “If companies like Cuadrilla can make one example work, we believe that bans in other countries may be lifted” said Menno Koch, an analyst at Lambert Energy Advisory in London. | “If companies like Cuadrilla can make one example work, we believe that bans in other countries may be lifted” said Menno Koch, an analyst at Lambert Energy Advisory in London. |
| The results of the limited shale gas explorations in Europe so far have been mixed. Earlier this year, for example, Exxon Mobil pulled out of Poland, once considered among the most promising shale spots, after drilling just two wells. The company said the data it collected suggested that the deposits were not commercially viable. | The results of the limited shale gas explorations in Europe so far have been mixed. Earlier this year, for example, Exxon Mobil pulled out of Poland, once considered among the most promising shale spots, after drilling just two wells. The company said the data it collected suggested that the deposits were not commercially viable. |
| Nearly all the companies involved in shale gas exploration across Europe say there is not yet enough information to draw firm conclusions about how much gas is there and, more important, whether it can be made to flow. | Nearly all the companies involved in shale gas exploration across Europe say there is not yet enough information to draw firm conclusions about how much gas is there and, more important, whether it can be made to flow. |
| Derek Magness, Warsaw-based director of European onshore operations for Chevron, said that he and colleagues had made it a practice to hunt around in old government repositories in Eastern Europe for dusty boxes of paper drilling logs and rock core samples. | Derek Magness, Warsaw-based director of European onshore operations for Chevron, said that he and colleagues had made it a practice to hunt around in old government repositories in Eastern Europe for dusty boxes of paper drilling logs and rock core samples. |
| “The data we are getting gives us additional curiosity,” he said. “We want to be very thorough.” | “The data we are getting gives us additional curiosity,” he said. “We want to be very thorough.” |
| Chevron has drilled two wells in Poland and is preparing to start a third. Mr. Magness said the company had identified potentially rich shale areas in a broad region extending from the Baltic to the Mediterranean. It has locked up millions of acres along this band in Poland and Romania and won a tender for more in Ukraine. Mr. Magness filled in another piece of the puzzle recently by acquiring a 50 percent stake in a privately held Lithuanian oil and gas exploration company, LL Investicijos. | Chevron has drilled two wells in Poland and is preparing to start a third. Mr. Magness said the company had identified potentially rich shale areas in a broad region extending from the Baltic to the Mediterranean. It has locked up millions of acres along this band in Poland and Romania and won a tender for more in Ukraine. Mr. Magness filled in another piece of the puzzle recently by acquiring a 50 percent stake in a privately held Lithuanian oil and gas exploration company, LL Investicijos. |
| Figuring out what is underground may be difficult, but most companies are finding what they call aboveground risks even more daunting. | Figuring out what is underground may be difficult, but most companies are finding what they call aboveground risks even more daunting. |
| Cuadrilla hurt its cause last year when one of its fracking operations set off small earth tremors. Mr. Egan said pumping fracking fluids into the earth lubricated natural fractures so they slid, causing the quakes. | Cuadrilla hurt its cause last year when one of its fracking operations set off small earth tremors. Mr. Egan said pumping fracking fluids into the earth lubricated natural fractures so they slid, causing the quakes. |
| The incident stoked opposition. Last year, three activists from a group called Frack-off entered a Cuadrilla drilling site and chained themselves to the equipment. In July, a court found them guilty of trespassing and fined them £750, or about $1,200, each. | The incident stoked opposition. Last year, three activists from a group called Frack-off entered a Cuadrilla drilling site and chained themselves to the equipment. In July, a court found them guilty of trespassing and fined them £750, or about $1,200, each. |
| Nathan Roberts, a Frack-off campaigner, said that his group was opposed to shale gas and other so-called unconventionals in part because these techniques required many wells to be drilled. | Nathan Roberts, a Frack-off campaigner, said that his group was opposed to shale gas and other so-called unconventionals in part because these techniques required many wells to be drilled. |
| “If companies go ahead and look to exploit all the unconventional gases they could exploit, you are looking at tens of thousands of wells over this tiny island, which is densely populated,” he said. | “If companies go ahead and look to exploit all the unconventional gases they could exploit, you are looking at tens of thousands of wells over this tiny island, which is densely populated,” he said. |
| Cuadrilla is trying to defuse the opposition. The drill rig at St. Annes sits on an impermeable membrane and has water-quality and seismic monitors, and is even surrounded by piles of rolled hay bales, lest the sight of the rig disturb the birds that feed in the fields. | Cuadrilla is trying to defuse the opposition. The drill rig at St. Annes sits on an impermeable membrane and has water-quality and seismic monitors, and is even surrounded by piles of rolled hay bales, lest the sight of the rig disturb the birds that feed in the fields. |
| Climbing over the steel decks of the rig during a brief hail shower, Mr. Egan pointed to an acoustic monitor in a wire cage just beyond the fenced-in perimeter. | Climbing over the steel decks of the rig during a brief hail shower, Mr. Egan pointed to an acoustic monitor in a wire cage just beyond the fenced-in perimeter. |
| “There is a need to collect data,” he said. “There are a lot of myths.” | “There is a need to collect data,” he said. “There are a lot of myths.” |
| To find out whether the gas will flow in sufficient quantities to be commercial Mr. Egan wants to drill two horizontal wells and then fracture the rock in them to measure the output. | To find out whether the gas will flow in sufficient quantities to be commercial Mr. Egan wants to drill two horizontal wells and then fracture the rock in them to measure the output. |
| Cuadrilla has started to drill an 11,000-foot vertical well at the new site, but it still needs permission to go horizontal, and the decision to allow fracking may need to come from the highest levels of the British government. | Cuadrilla has started to drill an 11,000-foot vertical well at the new site, but it still needs permission to go horizontal, and the decision to allow fracking may need to come from the highest levels of the British government. |
| Companies that want to exploit shale gas in Europe are also learning that they must tread softly or they will go nowhere. | Companies that want to exploit shale gas in Europe are also learning that they must tread softly or they will go nowhere. |
| “The days of Texas wildcatting are over. You can’t just pick a spot and drill; you have to go through lots of engagement, ” said Mr. Magness of Chevron, which has had protesters block access to sites in Poland. | “The days of Texas wildcatting are over. You can’t just pick a spot and drill; you have to go through lots of engagement, ” said Mr. Magness of Chevron, which has had protesters block access to sites in Poland. |
| Exxon Mobil, which halted drilling on what it considers promising acreage in Lower Saxony in Germany in the face of local opposition in 2010, is still working to overcome fears that drilling would ruin neighborhoods. To reduce noise, the company hangs sound curtains on some of its rigs and is considering using electric motors, which are quieter than diesel-powered ones. | Exxon Mobil, which halted drilling on what it considers promising acreage in Lower Saxony in Germany in the face of local opposition in 2010, is still working to overcome fears that drilling would ruin neighborhoods. To reduce noise, the company hangs sound curtains on some of its rigs and is considering using electric motors, which are quieter than diesel-powered ones. |
| “You’ve got to convince people it doesn’t have a negative impact,” said Tristan J. Aspray, Exxon Mobil’s exploration operations manager for Europe and Greenland. | “You’ve got to convince people it doesn’t have a negative impact,” said Tristan J. Aspray, Exxon Mobil’s exploration operations manager for Europe and Greenland. |
| In straight economic terms, producing shale gas in Europe would appear to make a lot of sense. Europe is a big gas market and, unlike in the United States, its own gas production is declining, making it more dependent on imports from countries like Algeria, Libya and, especially, Russia. | In straight economic terms, producing shale gas in Europe would appear to make a lot of sense. Europe is a big gas market and, unlike in the United States, its own gas production is declining, making it more dependent on imports from countries like Algeria, Libya and, especially, Russia. |
| Easing this dependence is a big part of Chevron’s pitch to Eastern European countries, which are entirely dependent on Russia for their gas. | Easing this dependence is a big part of Chevron’s pitch to Eastern European countries, which are entirely dependent on Russia for their gas. |
| “Of course this is a big chance for Europe, where we focus on energy security and understand that this might make us more independent,” said Boguslaw Sonik, a European Parliament member from Poland. | “Of course this is a big chance for Europe, where we focus on energy security and understand that this might make us more independent,” said Boguslaw Sonik, a European Parliament member from Poland. |
This article has been revised to reflect the following correction: | |
| Correction: November 14, 2012 | |
A picture caption with an earlier version of this article misidentified the plant shown. It is a drilling rig in England owned by Cuadrilla Resources, not a processing plant run by RusPetro of Russia. |