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Fracking licences to be granted by government Fracking licences to be granted by government
(about 1 hour later)
The bidding process for licences to extract shale gas - using the controversial process fracking - will begin later on Monday. The government has opened the bidding process for new licences to extract shale gas, using the controversial fracking process.
About half the UK is open to exploration, but tightened rules cover areas of outstanding beauty.About half the UK is open to exploration, but tightened rules cover areas of outstanding beauty.
Companies granted a licence to begin test drilling will also need planning permission and environmental permits.Companies granted a licence to begin test drilling will also need planning permission and environmental permits.
The coalition sees shale gas as a major potential energy source. Critics of fracking warn of environmental dangers.The coalition sees shale gas as a major potential energy source. Critics of fracking warn of environmental dangers.
Fracking involves blasting water, chemicals and sand at high pressure into shale rock formations to release the gas held inside.
In announcing the so-called 14th onshore licensing round, Business and Energy Minister Matthew Hancock said: "Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth."In announcing the so-called 14th onshore licensing round, Business and Energy Minister Matthew Hancock said: "Unlocking shale gas in Britain has the potential to provide us with greater energy security, jobs and growth."
"We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy.""We must act carefully, minimising risks, to explore how much of our large resource can be recovered to give the UK a new home-grown source of energy."
It is the first time in six years firms have had the opportunity to secure new licences.It is the first time in six years firms have had the opportunity to secure new licences.
Drill downDrill down
Robert Gatliff, Science Editor at the British Geological Survey told the BBC it would still be some time before full scale drilling would start.Robert Gatliff, Science Editor at the British Geological Survey told the BBC it would still be some time before full scale drilling would start.
"The first stage, you'd review all the data you've got. Then you'd want to drill one or two exploration holes and then take samples of the shale and see exactly what the content is and see which have got the most in and which bits are likely to fracture best to get the most oil out.""The first stage, you'd review all the data you've got. Then you'd want to drill one or two exploration holes and then take samples of the shale and see exactly what the content is and see which have got the most in and which bits are likely to fracture best to get the most oil out."
An agreement to proceed with drilling would still be subject to planning permission and permits from the Environment Agency.
He said that although surveys suggest there is between 820 and 2000 trillion cubic feet of gas embedded under the UK, "there's no way we'd get all that out".He said that although surveys suggest there is between 820 and 2000 trillion cubic feet of gas embedded under the UK, "there's no way we'd get all that out".
"If you look at what happens in the US, and that's where you've got to look because that's where they've drilled thousands of holes, they're not getting more than 5%." "If you look at what happens in the US, and that's where you've got to look because that's where they've drilled thousands of holes, they're not getting more than 5%," Mr. Gatliff said.
"In Britain we're so crowded and we've got these beautiful areas, that reduces the amount we can get out as well.""In Britain we're so crowded and we've got these beautiful areas, that reduces the amount we can get out as well."
Analysis: Norman Smith, chief political correspondent, BBC Newschannel
Government sources have dismissed claims that new restrictions on fracking are designed to head off protests in Tory seats in the South of England.
The government has today announced new curbs on fracking in areas of outstanding beauty and has also given the environment secretary more power to intervene where there are disputes over drilling.
However sources deny that the announcement by the Energy Minister, Matthew Hancock, is designed to assuage anger from Tory voters in the south - where fracking has been threatened in areas such as Hampshire, Surrey, Sussex and Kent.
Sources say that Mr Hancock is "a countryside man" with a genuine desire to protect areas of natural beauty.
However he acknowledges there is a need to re-assure voters about the impact of drilling for natural gas.
They stress that the new restrictions will apply to National Parks and Areas of Outstanding Beauty across the UK and not just in the south of England.
Its understood the first gas from fracking is likely to be extracted early next year.
DemonstrationsDemonstrations
About half the UK is open for licensing, including parts of National Parks. But applications there will only be accepted in "exceptional circumstances and in the public interest", said the government. The same rules apply for the Broads, Areas of Outstanding Natural Beauty and World Heritage Sites.About half the UK is open for licensing, including parts of National Parks. But applications there will only be accepted in "exceptional circumstances and in the public interest", said the government. The same rules apply for the Broads, Areas of Outstanding Natural Beauty and World Heritage Sites.
"Proposals for such development must recognise the importance of these sites," Communities Minister Lord Ahmad of Wimbledon said."Proposals for such development must recognise the importance of these sites," Communities Minister Lord Ahmad of Wimbledon said.
The licences are likely to prove controversial, as there is a great deal of public opposition to fracking, which involves blasting water, chemicals and sand at high pressure into shale rock formations to release the gas held inside.
Angry demonstrations took place in the West Sussex town of Balcombe last summer as more than 1,000 people protested at a test site operated by energy company Cuadrilla.Angry demonstrations took place in the West Sussex town of Balcombe last summer as more than 1,000 people protested at a test site operated by energy company Cuadrilla.
Test drilling has also taken place in Lancashire. Test drilling has also taken place in Lancashire. The north of England is the largest area identified as containing shale reserves.
The British Geological Survey has also pinpointed south east Scotland and the south of England as containing shale resources.
Critics of fracking argue that it can lead to earth tremors, water contamination and disruption to rural communities. There are also concerns about methane leakage and diverting resources away from renewable energy.Critics of fracking argue that it can lead to earth tremors, water contamination and disruption to rural communities. There are also concerns about methane leakage and diverting resources away from renewable energy.
The industry itself rejects these criticisms, arguing that, if regulated properly, fracking is a safe way to unlock huge resources of gas, which is a cleaner source of energy than coal.The industry itself rejects these criticisms, arguing that, if regulated properly, fracking is a safe way to unlock huge resources of gas, which is a cleaner source of energy than coal.
Access rightsAccess rights
The government is keen to promote fracking in the UK, and has already announced a number of incentives to help kick-start the industry, including tax breaks, payments of £100,000 per site plus a 1% share of revenue to local communities.The government is keen to promote fracking in the UK, and has already announced a number of incentives to help kick-start the industry, including tax breaks, payments of £100,000 per site plus a 1% share of revenue to local communities.
It argues that shale gas could be an important bridge to help secure energy supplies until renewable energy capacity is increased.It argues that shale gas could be an important bridge to help secure energy supplies until renewable energy capacity is increased.
Others argue that while it may be cleaner than coal, it is still a hydrocarbon that emits CO2 linked to global warming.Others argue that while it may be cleaner than coal, it is still a hydrocarbon that emits CO2 linked to global warming.
In the US, shale gas has seen energy costs tumble, but questions remain about whether the American shale revolution can be replicated in the UK and elsewhere. Our Environment Analyst Roger Harrabin said: "If environmentalists succeed in stopping fracking in the UK by stirring up local objections they will actually make the greenhouse effect worse in the short term."
"This is because Britain will continue to use gas for heating and as a backup to capricious wind and solar electricity. If the industry can't get British gas it will import liquefied gas - and the energy needed to turn gas liquid makes it worse for the climate than home-produced gas."
In the US, shale gas has caused energy costs to tumble, but questions remain about whether the American shale revolution can be replicated in the UK and elsewhere.