Shale and fracking hog today’s headlines…
UK
The Treasury announced it will cut the tax on shale gas production income from 62% to 30% in a bid to kickstart the industry. Chancellor George Osborne said: “We want to create the right conditions for industry to explore and unlock that potential in a way that allows communities to share in the benefits.”
Local communities near exploratory drills will have to receive £100,000 compensation and are entitled to 1% of subsequent shale gas revenue. The move comes just days after a government-commissioned report suggested UK shale production would have a negligible effect on driving down domestic gas prices.
Telegraph: UK Water voices fracking concerns
The represenatitve body of the UK’s major water suppliers is worried that shale gas exploration could contaminate the water supply. It also fears that the huge quantities of water required for fracking could lead to water shortages.
UK Water also said: “Even if a supply of water is available, there may not be enough existing pipework to deliver it to the fracking site. The infrastructure that is in place could also be at risk from seismic activity induced by the fracturing process.”
Government sitting on the fence for decarbonisation
Carbon brief claims that the government’s latest report on energy market reform (EMR) fails to demonstrate a “confident stride” towards a decarbonised energy sector. The DECC report includes a number of scenarios including varying emissions targets for electricity generation, the development of CCS and the expansion of nuclear and offshore wind.
Green Deal’s sluggish start continues
DECC data reveals that just 36 households had signed up to the Green Deal energy efficiency scheme by the end of June, far behind the government’s target of 10,000 by the end of the year. More encouragingly 270 Green Deal plans are imminent and the number of assessments undertaken has risen to 44,500.
Hydrogen-fuelled ferry launched in Bristol
The boat which runs on hydrogen fuel cells and produces zero carbon emissions at point of use is the first of its kind in the UK. The ferry, named Hydrogenesis, has been carrying commuters since March but was officially unveiled yesterday.
WORLD
US government fine XTO for shale gas spill
XTO, a subsidiary of ExxonMobil, has been handed a $100,000 fine for allegedly dumping 310 barrels of fracking wastewater into a tributary of the Susquehanna River in Pennsylvania in November 2010. The government has also demanded that the shale gas firm spend an estimated $20m upgrading its facilities to improve environmental safety.
Boost for fracking as federal study shows no aquifer contamination
Preliminary results from the investigation commissioned by the US Department of Energy found no evidence that chemicals from fracking moved upwards to contaminate drinking water at a drilling site in Pennsylvania. Tracers injected into the fracking fluid 8000 feet below the surface were not detected in a monitoring zone 3000 feet above. This suggests fracking chemicals stay well away from drinking aquifers which are usually within 500-1000 feet of the surface.
