The View of EDF Energy on Shale Gas Production and Use

If you are interested in the UK energy politics, you might be following the EDF Energy and shale gas issue very closely. Shale gas has shaken up the entire energy industry. As a natural gas, shale gas has a reputation of being a low-carbon, coal alternative. Thus, it can play a crucial role in the transition to a more clean economy. However, it’s important to get things right first.

Despite being natural, shale gas has some risks that are associated with it. For instance, wastewater from the drilling operations is usually chemical-laden. This can cause contamination of water supplies. Methane pollution in the gas supply chain can also cause air pollution and accelerate climate change. Clearly, if these risks are not addressed in a sober manner and on time, the environment and people that live close to these developments will be exposed to serious risks. That’s why EDF Energy is advocating for a smart approach to the shale gas issue. If you have questions regarding this, you can contact EDF Energy using their customer service phone numbers: http://www.energycustomerservice.co.uk/edf-contact/

Economic benefits

extracting shale gas

In terms of the potential economic benefits of shale gas in the UK, EDF is of the view that production of shale gas will not alter the delivery path that will lead to the achievement of the 2050 GHG emission reduction goal (https://dspace.lib.cranfield.ac.uk/handle/1826/6503). Additionally, EDF does not believe that shale gas development will have a game changer effect like it did in the U.S in terms of energy costs and gas prices. Although there has been a global increase in gas due to the U.S shale gas, EDF expects this to curb price rises instead of driving them down.

Community protection

The environmental impacts of shale gas production are mostly felt at the local levels. EDF is of the view that nobody should sacrifice their life’s quality for economic purposes. As such, EDF is engaging in gas and oil exploration and exploitation activities in different states including Pennsylvania and Texas. Currently, EDF Energy is fighting for the essence of safeguards that improve practices in the industry while requiring gas and oil companies to operate in more responsible ways.

To form a responsible part of the energy mix, natural gas must work well with the increasing renewable energy sources, not against them. When used strategically, shale gas can be crucial in the mix and that’s what EDF is advocating for.

Market considerations

EDF Energy is of the view that this gas generation will provide the largest opportunity when fitted with carbon capture and storage. That’s when the gas will have a larger market share as long as the other low carbon alternatives will be more expensive or unavailable. Therefore, it is important for the government to continue its momentum on Electricity Market Reform. Reforming the electricity market will enable the energy market to deliver a diverse energy mix that is required to meet energy policy goals. Proposals by the government should provide a framework for the investment in shale gas. This framework is very important for low-carbon investment that not only the country needs but it also helps in maintaining low costs for consumers.

Verdict

Potential production of shale gas in large volumes reinforces the importance of establishing an enduring and credible price signal to enable investors to make informed decisions. Currently, the EU emissions trading system lacks a long-term signal that is required to make relevant investments in the generation of low-carbon alternatives. Although carbon price floor introduction in the UK helps in the restoration of a signal for long-term price, it does not eliminate the need for reforming the EU ETS in Europe.

EDF Energy Gas Distribution Plant

Therefore, EDF Energy supports initiatives that will lead to finding a solution to the EU ETS defect at the European level. Additionally, it encourages their pursuance by the government. For instance, EDF agrees that UK needs to work with partners in the European Union to achieve robust agreement for the reduction of carbon dioxide at the domestic level across the European Union. This includes setting more ambitious targets for this reduction by 2020, relative to those of 1990.

Generally, the battle that EDF Energy is fighting is for the formulation of sensible policies that will curb pollution where necessary. This includes conducting scientific research with an aim of improving our understanding of shale gas, problems that are associated with it and their possible solutions.

Chesapeake Barnett Shale Drill

Chesapeake Barnett Shale Drill in Fort Worth was a boon to the people of the Texas suburb. Indeed, it was reported that oil drilling really changed the look and life of the Fort Worth people. While major cities consist of tall buildings and plush homes in the surrounding environs, Chesapeake has oil drills running and revving. There are a few active wells still with significant economic value.  Drilling began in Fort Worth sometime around 2001. People have come to be enlightened about the energy industry and how the oil industry operates. In any case, the learning is by default because the wells are found in the people’s backyards.

Resistance and the Reasoning

Of course the Fort Worth drilling ventures did not happen without a fight. The resistance is informed by the fact that over time, reality dawned on the residents of this Texan Suburb that the riches from the oil exploration will come with a cost. One of the bones of contention was the fact that Fort Worth had been naturally endowed scenery with beauty that struck you as soon as you hit the suburban roads.  Traditionally, Fort Worth has enjoyed lots of hikers, riders, bikers, walkers and the lot. All these natural scenery enthusiasts loved their Fort Worth as it was before the discovery of the riches. So they have tried to fight some of the threats but, obviously and evidently, there is conflicting interest.  There have been many conflicts regarding the drilling. Yet, the bottom line is that oil drills in Fort Worth remain the talk of the town. The wells mean that a good amount of the natural scenery, the trees, and the green expanses had to go. You cannot have your cake and eat it.

The Will of the People

The outcry by the Fort Worth people yielded fruit when Chesapeake agreed to trim down the size of its drilling area to half what it had originally intended. Environmental conflicts suffice when it comes to oil exploration; and Chesapeake was not the first. The oil prospects and gains that the company had forecasted from its feasibility studies were bound to be altered a great deal. Indeed, the area that was given up for environmental preservation is still fenced out with a black chain link. The activists and environment protection groups scored highly. It was a major lesson to both sides of the conflict. The heated battles about drilling in Fort Worth were informed by history. There was evidence everywhere that earlier natural resources exploration had abused the environment. Yet it seems the compromise by Chesapeake was a precursor to later business decisions in Fort Worth.

The Unexpected Turn of Events

Sometime in August 2016, Chesapeake Energy decided to move a huge chunk of its land to a Dallas Company. The move was supported by a private equity facilitator.  There is no pecuniary gain in the land transfer to Saddle Barnett Resources.

Chesapeake argues that its decision was appropriate if it is to realize new business avenues in the oil industry. Chesapeake hopes to save about $200 to $300 million every year as operating income gain.  The firm also aims to dispose off up to $1.9 billion of midstream and downstream obligations.

The future of Chesapeake Barnet Shale Drill in Fort Worth Texas hangs in the balance following these developments. It is part of the 2, 800 wells that Chesapeake has been running. The company first entered the Barnett in 2004.

Chesapeake is reported to have agreed to pay its partners an amount in the range of $334 million in order to exit the pipeline deal to ship the Barnet shale gas.  On its part, Saddle Barnet will part with up to $420 million as payments to Williams in order to cancel the arrangement. The deal is in its final stage and it is hoped to be closed by the end of this third quarter of the year.