It's not shale gas, it's not conventional oil - it's shale oil they are looking for.
Cuadrilla is looking for unconventional oil in Balcombe and the South East, not conventional oil supplies - meaning it’s likely to have to frack there for any reserves it finds, according to papers filed by the company.
This contradicts suggestions in papers such as the Sun that the Balcombe site is not linked to the row over fracking.
There are no plans for fracking during the exploratory drilling phase.
Fracking for oil in the South is unlikely to have much impact on UK energy bills, or security of gas supply - though it could provide a boost to tax receipts.
Cuadrilla has suggested Balcombe may not be a suitable location for full production, but has previously refused to rule out fracking at the site.
The UK Onshore Operators Group, which represents the oil and gas industry told Energydesk that “As far as we are aware, this is a Liassic (Lower Jurassic) shale oil play.”
The papers suggest that Cuadrilla expects to find 'tight oil' at the site - which means it is trapped in rocks with low porosity. The limestone Micrite rocks sit between layers of shale. The two terms are commonly used inter-changeably.
Cuadrilla has already applied for planning permission to frack at the site but decided not to do so on this occasion - according to documents previously seen by Energydesk.
A study by the US Environmental Information Agency (EIA) indicated potential reserves in the south and south-west of England would contain US style ‘tight oil’, rather than conventional oil or shale gas.
However this contradicts earlier studies by the BGS and DECC which suggest both oil and gas may be found in the region.
The British Geological Survey (BGS) is expected to publish information to this effect in March.
The Prime Minister, David Cameron argued that fracking around the country - including the south - is important to reduce household gas bills and ensure the lights stay on, as well as to boost the UK economy.
Whilst the discovery of tight oil in Europe would be a big boost for Cuadrilla and may generate tax receipts - it would not have any impact on gas markets, UK power supplies, or the UK price of petrol.
Instead the drilling in the South East could herald the first attempts to extract shale oil outside of the United States, where drilling is underway across North Dakota.
Shale oil extraction may come with associated gas, as happens at Wytch Farm. However Cuadrilla have argued they primarily expect to find oil in Balcombe.
Climate change
As with shale gas, exploring for new unconventional sources of oil is potentially incompatible with the government’s ambition to lead global action on climate change.
Fracking in the UK series:
What does the Poyry report on shale say about UK bills?
Who owns the rights to drill in the UK?
Where are drilling licenses issued? and which seats are included?
What's happening in Balcombe (Part 1)?
FOI documents reveal how the regulations were made (Part 1)
FOI documents reveal Lord Browne's role in fracking regulations (Part2)
Fracking and Naturally Occurring Radioactive Materials (NORM)
The IEA has warned that more that around half of the world’s existing and economically extractable gas and oil supplies need to stay in the ground if the world is avoid climate change reaching a scale sufficient to disrupt global food supplies.
The agency forecast that global oil demand should peak by the mid-2020’s, before any oil from Balcombe is likely to come on stream. Oil also cannot be economically used to substitute for dirtier fuels such as coal.
A recent report for the Norwegian government warned that extracting oil from tight oil formations is likely to be more climate intensive than conventional oil extraction.
Little research or consultation appears to have taken place on the issue of fracking for oil. The government’s independent climate advisors, The Committee on Climate Change told Energydesk “We have not considered the evidence on shale oil so cannot comment.
The documents also reveal that Cuadrilla is drilling horizontally in Balcombe and carrying out an acid wash to test for shale oil.
Fracking for oil would be similar to the process used to extract gas though it may involve the need to transport the oil via pipelines or tankers.
Tight oil
Cuadrilla has repeatedly insisted, on and off the record, that the drilling in Balcombe is primarily aimed at oil, not gas and the firm is not currently fracking.
But in its Environmental Method Statement for the Balcombe drilling, drawn up in May this year, Cuadrilla lists what it expects to find during it’s drilling programme.
The document lists the presence of tight oil at varying depths at which the firm plans to drill horizontally and use an acid wash (involving up to 10% dilute Hydrauchloric acid) to remove drilling debris before taking samples.
The company has indicated it plans to take samples from the shale for analysis. A senior industry source with knowledge of the drilling operations contacted by Energydesk described the drilling as a ‘shale oil play’.
Indeed the weald basin contains a formation known to be rich in oil - the Kimmeridge clays - which outcrop at Kimmeridge bay.
Drilling for shale oil would involve horizontal pipes through the rock - called micrites. Natural fractures in the rock may allow the oil to enter the well but it is more likely that hydraulic fracturing, using water, sand and chemicals, would be needed - just as it is for shale gas.
Earlier this year the US Energy Information Agency (EIA) released data suggesting most of the Weald basin is an oil - rather than gas - prospect. The agency suggested the Weald may have 700m barrels of recoverable oil.
However the EIA is an early estimate which - as with their shale gas estimates - may be revised up by the British Geological Survey (BGS).
The BGS expect to publish their report on the Weald in March which may make use of data from the Balcombe drilling.
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