UK shale gas – a policy tug of war

Abstract

Given the important role that the United Kingdom offshore oil and gas industry has played in contributing to the UK's economy and energy security, it should not come as a surprise that the UK Government is eager to emulate, even if to a more modest extent, the success of the shale gas industry in the United States. The development of the shale gas industry is therefore firmly on the government's policy agenda and in recent years the former coalition government, and now the new Conservative government, have taken various steps to smooth the regulatory road for the industry. However, to date no production has commenced and it is clear that there are still difficult regulatory hurdles in place. This commentary considers recent regulatory developments and the issues they present for the industry. It is arguable that one of the main problems is the fact that the government is juggling two separate policies that are on a collision course with each other in the context of shale gas: on the one hand, a policy to support onshore shale gas; and, on the other hand, a policy to allow local communities a greater say in planning consent decisions.