Industry

Third Energy welcomes recommendation to approve Kirby Misperton fracking plans

Third Energy

In a statement issued tonight Rasik Valand, Chief Executive of Third Energy, said:

“We are pleased that the Planning Officer has recommended that North Yorkshire County Council approve our application.  Within our application, and throughout North Yorkshire County Council’s thorough assessment of it, including various stages of consultation, and through all the additional information provided, we have addressed the wide range of questions, concerns and comments raised by NYCC, statutory consultees and others.

“This work is reflected in the Planning Officer’s Report together with the planning conditions proposed.  We believe that this thorough report will enable North Yorkshire County Council to reach a positive determination on our application.

“Third Energy has been drilling wells and producing gas safely and discreetly from this site in Kirby Misperton for over 20 years and we will continue to maintain the same standards in the future.”

Campaigners urge councillors to overrule planners’ recommendation

Breaking: Planners recommend approval of Third Energy plans to frack at Kirby Misperton

68 replies »

  1. Michael…there is no rescue to make. We have enough reserves to last decades to come. There is nothing wrong with trading with another country for resources. It’s what keeps the global economy afloat. Without it there are no ‘investment gains’.

    It makes me sad that some people are only interested in making money only through causing misery to others. Better that we ‘invest’ in small local sustainable businesses based and funded by UK money to help our country gain real autonomy. We need to move away from this ‘greed’ culture and support safe investment, where people can live their chosen lives; not just create individuals who play the number game to top up their bank balance because they think it’s safe, some of whom can never spend this computer generated money in their lifetime.

    If you are an investor, you would be better off investing your money in a slow but sure longer term investment in clean energy and their suppliers. For example, in the past 5 years, whilst shale has failed, Good Energy shares have increased from 100p to 217p and have also paid a dividend. Much better than the returns from a couple of potential shale drillers we all know and love(not).

    If I had money from a pension/inheritance/savings or whatever and wanted to ‘add to these’ to enhance my lifestyle, I would Invest in companies like these. That way I am not destroying the lives of people in Yorkshire and Lancashire, but enhancing the lives of future generations; if you still need your betting fix to get rich quick buy a lottery ticket!

    • Wow and you call the frackers are only in it for the money. And your assumption that renewables is cleaner and more reliable than all other need to be checked again.

  2. TW Is that all you can say? Clearly your comprehension skills are poor….the use of ‘If’ and ‘wanted’ pertain to those who wish to invest, not to me personally.

    Here’s a thought to those who want ‘home grown shale’*. What if the consumer wont pay the added price – presuming there is any gas that can be brought up and treated to go into the main supply? Clearly it is very expensive option….if that’s so, does that mean we will go back to growing our own salad vegetables and strawberries instead of importing the bulk from Spain; growing our own tomatoes again, instead of importing from Italy. What about cars should we stop buying from India; generators from China? Hey, let’s throw it all in and live within our means, with only British grown, made, financed goods.

    I think not. The consumer drives down the price, hence why we import products and commodities. Just as there are only a small percentage who will pay the ‘real price’ for food, the same goes for energy…that’s why the take up of ‘good energy is slow, but thankfully moving in the direction as the costs are coming down.

    Don’t forget, it’s not just the price per therm that is at least 20p more expensive, but the ‘clean up’ costs, damage to roads and reduction in house prices will have a negative cumulative effect on the economy; oh, and a little matter of fossil fuel industries contribution to climate change…..

    *NB. ‘home grown shale’- gas extracted from the UK using non-UK money, using off shore companies that pay little on no UK taxes.

    • Market forces will dictate where gas is purchased. If it is cheaper to import than using gas from UK shale then there won’t be a UK shale gas industry. It is that simple. However the reason global gas prices have dropped significantly is US and Canadian shale gas production. 65% of US gas production is now from shale.. So perhaps UK shale gas may be lower cost than imports / North Sea i.e. a lot lower than people on this board keep telling us it will be. We won’t know until some test drilling and fracking has been completed and productivity and reserves are established and the numbers plugged into the economic models.

      • Exactly. I agree. Let the market forces determine the economic viability of this or any other industries rather than strangle it even before birth basing on assumption and speculation.

      • The timing of entering the market should gives a clue to viability. The presence of shale and it’s properties has been known about for decades. Fracking in the US is not a new technique.

        You need to be the first to “dip your toe” into the water. This involves taking the biggest risk. Wait to long and others get there first. You do the maths, arrive at a just viable market price with an upward trend and jump in and try and take control. In 2010 prices were looking to trend upwards. UK Exploratory drillers made their move.

        Two things went wrong for them. Firstly, delays for all the known reasons. Secondly, whilst this was happening OPEC decided that they wanted their global market share back from US and took it by driving the price right down. They won’t be loosing their grip any time soon.

        Global economic downturn and very real climate change issues (see NASA for stats this year) are here now. UK MPs are already voicing their concerns that we cannot meet our climate change targets. OPEC are making sure they get rid of their reserves first before the very real reality hits home that we must start burning less with Saudi Arabia having confirmed they will be moving rapidly away from an oil based economy.

        In my mind all this in the mix means that UK shale is not a viable proposal and could only exist in the short term as a quick buck ponzi scheme as stated by Gundi Royle in their report found in the Ryedale KVA objection.

  3. Sherwulfe of course its home grown shale if it come out of U.K. soil, what a ridiculous comment you make, and what does it matter who funds it’s extraction and production.

    Perhaps you aren’t aware that aside from international investment, Centrica, the U.K’s vehicle for energy production, is also involved in the mix.

    And I see you made mention of that elephant in the room comment about the possible reduction in house prices. You’re not the only anti-shale poster who snuck that one in, it seems that particular reason for opposition is clearly on Claire Stephenson’s agenda also.

    As for your comment about IF there is any gas there to bring up, you’ve obviously had your head up your [word deleted by moderator]. Get with the game please!

    • You need to look a little deeper at the effect from falling house prices. House conveyancing solicitors are now searching for fracking (and other energy ) sites during routine house searches. I have 2 friends who have both who have been advised (without requesting) that the property they are interested in is within a PEDL. The solicitors are pointing this out in case of future comebacks on themselves. That info is then passed to the money lenders for consideration. (companies like ground sure) This is a serious issue effecting the housing market. In both cases the money lenders did not object because one was placing a 50% deposit and was near a town centre and the other was in the middle of a town. The fact is that there is going to be negative effects on large numbers of houses and concerns from money lenders is now fact.
      Many of us (including myself) will need the money invested in our properties to help care for us in old age. When you get down to your last £20000 the state intervenes and covers care cost. Nursing homes cost around £26000 pa. So for those of us who may need to go into care (this figure is rising with longevity) every £26000 house value loss will put us in the hands of the taxpayer a year earlier.
      You may be happy giving unnecessary millions of your tax money to look after those who have been forced into state care sooner but I think most would agree that is not best for the economy.
      A serious loading on the tax payer and not just a NIMBY concern.
      Try and get with the whole game not just fleeting remarks with no substance although I am grateful for your weak comments as it gives us the opportunity to answer with sensible, realistic and fact based information which is being watched by would be investors and those who want to make informed decisions.

  4. Dear me Michael, resorting to inappropriate language. Thank you KT for your comment.

    Regarding your statement ‘As for your comment about IF there is any gas there to bring up’ actually what I said was ‘presuming there is any gas that can be brought up and treated to go into the main supply?’. Maybe if you read it again you will understand the point I was making. Shale gas cannot just be added into the system, it will need to be refined;this will add to the already inflated cost.

    It does matter who funds it’s extraction and production. In case you had not noticed, the people of the UK are no longer positively responsive to ‘tax avoiders’; and if it is so good, why aren’t UK backers there in the majority, and not in the minority as you claim?

    Fracking supporters use this term to suggest to the unsuspecting public that shale will bring down their energy costs, and that we will not be beholding to particular regimes such as Russia and the Middle East. if the bulk of the money and any? profit is paid to the current investors are we prepared to have our strings pulled by their political and economic systems? The terminology ‘home-grown’ is clearly a misrepresentation of the facts.

    This is not a game, it is people’s lives.

    • What inflated cost? You have no idea what the produced cost of UK shale gas is – no one does. The Companies have some idea but produced costs will not be known until Reserves are known and economics simulated. Note the Reserves with capital R. This is the quantity of gas which can be extracted within the economic model above the cut off thresholds selected and with the desired ROR. Reserves need five crucial pieces of information – productivity, gas in place, recovery factor, OPEX and CAPEX. The first three can only be determined by drilling and testing some wells in each area. Gas in place can be estimated from 3D seismic but this needs to be calibrated with wells and wireline logging.

      The cost of treating produced shale gas to grid standards will be the same or lower than conventional gas wells. Heavy ends and water need to be removed through separation and drying, compression will be required to bring the delivery pressure up to specification and mercaptans need to be added so that consumers can smell it. These operations are all a lot cheaper onshore than offshore.

      There are several reasons why shale gas may not be produced in UK and these may include costs eventually. But the costs are not known yet.

      • If the starting place in the UK was at pace with the US then Green Completion would be used at every site. This would put an extra cost on production. Also the calorific value of shale is incompatible with our systems. Another substantial cost.

        The average calorific value (CV) of the UK national gas grid is 39.5 megajoules per cubic metre; shale gas is quite low at around 37. To get round this, shale gas suppliers may have to inject propane, which costs 140p per therm, into gas transmission pipelines to make up for the shortfall.

        “This is a major issue,” said John Baldwin, managing director of CNG Services Limited. “You probably will have to add propane in LTS (Local Transmission Systems).”

        For injection into the National Transmission System (NTS), there would need to be “thousands of calorific value measurement devices all over the UK”, said Baldwin, in order to ensure accurate billing, as the lower CV of shale gas would mean end-users pay for gas priced at a higher CV than received.

        The maths have already been done as seen in many of my previous posts showing EY, Bloomberg,and Centrica all stating European Shale Gas production costs nearly double offshore and at least a third more than LNG.

  5. Sherwulfe you are dead right when you say it’s not a game, it’s peoples lives we are dealing with, people in the UK, elderly people who succumb to the cold because they can’t afford to turn their gas heaters on in our coldest months.

    What other lives are in danger from this industry?

    Please don’t waste your time with scaremongering examples, detail factual information that supports your comments.

    • MICHAEL, that line about the elderly not being able to afford to heat their homes, I found astonishing when I first read it on the IGAS shareholders , share chat webpage.

      If you knew anything about the economics of the Gas market or how supplies work to and from the UK. You would be aware that there would be NO GAS PRICE REDUCTION .

  6. Michael. Thank you for changing your mind on the ‘game’, at least it’s a start.

    Regarding your comment about the elderly deaths, this is a problem NOW. It is not just a result of the high costs of energy but is coupled with the poor pensions paid by the state. Pensioners are choosing between food and heating.

    It is nothing to do with shale gas production which has been predicted to be higher in price to produce from several sources, links posted many times for you to read by John Powney. Clearly the inclusion of this more expensive fuel will only exasperate this particular problem?

    It would be wise of you, I think to take your own advice about scaremongering.

    Paul, it would be useful if you could produce the figures for processing the gas, and would appreciate this information. It is important for me to get my facts correct. A link on here would be appreciated.

    Regarding the ‘price’ of gas I do not think that the price has not been speculated, otherwise who would invest? I believe current estimates from Bloomberg are as high as 102p per therm to produce. Shale gas exploration started in the UK back in 2010 when the price of oil and gas was substantially higher. The gas price was in it’s low trough and expected to rise as it has always done in the recent past, but unfortunately this has not happened. With the potential higher price of production of shale, average 60p+ compared to imported LNG at 37p and North Sea at 27p, shale gas would have to be sold at a higher in price to recoup costs and pay profit to investors. This inevitably will affect the overall price of consumer gas?

    The current demand for gas in the UK, which has reduced according to recent government figures, plus the inclusion of other sources of energy into the mix will also dictate price and could drive the selling price of shale gas down (basic economics: supply and demand) which is now happening in the US. Coupled with high production costs the product has become loss making resulting in drilling companies becoming insolvent in alarmingly large numbers.

    I agree that market forces will drive this industry, and at the moment, it’s not looking good.

    • 54% of UK electricity is being produced by CCGT today and 6% from coal. The coal will be replaced by gas. This figure of over 50% from gas has been fairly steady recently. And most UK homes are heated by gas. So demand for gas is not going to drop significantly anytime soon other than seasonal variations. 65% of US gas production is apparently shale gas – France is reviewing their purchase of US LNG due to the fact that it includes a large proportion of shale gas and France has a moratorium on shale gas exploitation. Of course it is easy for France as they generate most of their electricity from nuclear (75%) so doesn’t have the same high demand for gas as the UK.

    • You have got to be joking Ruth?

      Since when is the word ” jack” offensive.
      The poor little dears, time for you to change their nappies Ruth [edited by comments moderator to remove personal remark].

      And while you’re at it you might take your independent t-shirt off and show your true colours.

  7. I love statistics. On the other hand 40% generated from other sources. And the gas is coming mainly from our own North Sea supplies and other sources cheaper than shale? These balances will change against fossil fuels with the limits put in place due to climate change, as contrary to the spin, gas is not a green energy.
    This conversation could go on forever.
    Fortunately for me I have reached the ‘age of not believing’ and there is no going back. For me fossil fuels and particularly shale and coal are not for the future.
    I wish you all well on your own journeys…..

    • Correct, 50% of the remaining 40% of the TOTAL is nuclear, leaving 20% of the TOTAL demand from all renewables of which around 7% of the TOTAL, 30% of the renewables, is wind. A large chunk of renewables is Drax burning imported trees.

      Demand is actually quite low mid afternoon. When demand increases this evening, what do you think will provide the increase? Gas of course. And solar goes to zero. These are not statistics, these are actual live readings.

      http://www.gridwatch.templar.co.uk/

      It seems that US shale gas is already setting the gas price in UK / Europe:

      http://www.telegraph.co.uk/business/2016/03/21/us-shale-already-setting-uk-gas-prices-say-analysts/

      Wed May 13 – Britain’s largest energy supplier Centrica (CNA.L) has signed new gas contracts with two of the world’s largest producers, Russia’s Gazprom and Norway’s Statoil, reflecting the UK’s growing dependence on gas imports as its production declines.

      The Gazprom deal give Britain a much higher exposure to Russian-sourced gas and comes despite European Union pressure to reduce the region’s dependence on Russian gas due to frosty relations with President Vladimir Putin over the conflict in Ukraine.

      Gazprom’s supplies to Centrica will rise to 29.1 billion cubic metres (bcm) until 2021, compared with 2.4 bcm agreed in a three-year deal in 2012. On average of the six-year deal, Gazprom will provide roughly 9 percent of Britain’s gas needs, according to Reuters calculations.

      “Whatever we might want as Europe, we need to be very careful about being pragmatic about the realities of it,” Centrica Chairman Rick Haythornthwaite at the company’s annual general meeting two weeks ago. “I think it’s unrealistic to think that Russian gas is going to be replaced in the near-term.”

      Gazprom, Russia’s top natural gas producer, meets a third of EU gas needs.

      Gas production in Britain, which was self-sufficient at the turn of this century, has fallen nearly 70 percent since a peak in 2000. Dependence on imports leave it heavily exposed to production risks that are beyond its control.

      Suggest you go off grid if you no longer wish to use fossil fuels……….

    • Well done. Out of interest how do you heat your home in the winter – logs / wood chips or biomass gas, or ground source heat pump? Off grid is something only a few can afford and achieve and unfortunately most people will continue to rely on grid electricity and gas heating for a long time to come. And of course the country would be even more in debt if everyone was paid FITs at 10 times the market price of electricity (assuming you got in early).

  8. From Govt figures Thursday 28th April 2016:

    ‘The last three months has seen a contraction of imports from Europe, with a small rise in LNG imports (1.7 per cent up). Overall, imports have decreased by 6.9 per cent on the same period a year ago, a result of strong UK production and relatively muted demand.

    Total exports were up nearly a fifth on the same period last year, with the most notable change being Belgian exports which increased nearly three fold to match the exports of gas to the Republic of Ireland.’

    I notice to date no one has spoken about the indigenous gas we export. compared to last years figures, at the moment it is looking like UK consumption has dropped and indigenous gas exports up, ‘a result of strong UK production and relatively muted demand’.

    • UK offshore gas production is up 8% in 2015, gross production of natural gas was 7.8 per cent higher than in 2014, and by far the largest increase since production peaked in 2000. This was due to both reduced maintenance and downtime in 2015, along with new fields such as Jasmine and Kew. Very mild winter = lower demand:

      Overall UK gas demand decreased by 4.6 per cent to around 219 TWh. Whilst slightly reduced demand for electricity generation contributed to this, the primary driver was the decrease in domestic gas which is down 10.5 per cent reflecting the fact average temperatures in the last three months of the year (2015) were the warmest for Q4 in over 40 years.

      Note that UK gas exports (mainly to Belgium) include re-exported gas and LNG which are re-exported if market conditions are right, in addition to home produced gas. Perhaps we will be exporting shale gas one day through the same pipeline?

      The only inter-connector gas pipeline which is bi-directional is the Bacton – Zeebrugge line; the other lines from Norway (2 off) and the Netherlands are inbound only.

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