Should Oil Nationals Be Allowed To Get Fracking Contracts In The U K?

[pdq1]

http://www.independent.co.uk/news/business/news/shell-sets-its-sights-on-a-leading-role-in-fracking-8476222.html

Like many I thought that shale gas would be an answer to all our prayers and reduce consumer prices considerably. In the US gas prices have tumbled to about a quarter. But if Shell was allowed to extract shale gas in UK could you imagine the prices falling at all when it would be in competition with itself from gas extracted from other sources?

[Buenchico]

Which other organisations have got the knowledge, experience and (most importantly) the finance to carry out the job?

As you've stated, fracking has been beneficial in the USA. And which company has been a leading player in carrying out that fracking? Non other than Royal Dutch Shell!

[bazwillrun]

These companies know that they have finite resources so want to be heading the rush for any new power source and try and monopolise it.

If Shell were to find a good fracking resource they would charge top-dollar for the product until another company finds a source and then they will have competition but just like petrol their secret cartels will stitch up the public.

these companies have got used to levels of profitability so they are not going to settle for anything less.

Even if they discovered a way to power the world that cost virtually nothing to produce they would make sure everybody payed through the nose for it to keep those profits up, same as the utility companies, no matter what, you wont ever get "cheap" power again, no matter what prices are they always manage to maintain their profit margins and thats the way they want it and will make sure it stays that way.

[Answerprancer]

At last, we agree on something Baz.
I'm wringing my hands with joy!

[youngmafbog]

Except of course most of the cost of a gallon goes to the Inland Revenue.

Who would you propose getting this out of the ground then if not big multinationals?

[Old_Geezer]

Unsure price/profits should be the first concern about fracking contracts. Have they sorted out the concerns regarding environmental damage yet ? I seem to recall reading there were some, not that I've followed it all. Oh and yes, cash cows are not going to be let off just because a source of power, less costly to get hold of, is discovered. They continue to pay through the nose, the multinationals and governments split the spoils between themselves.

[bazwillrun]

"Who would you propose getting this out of the ground then if not big multinationals? "

not that long a go (year at most) there was a radio 2 Jeremy vine I think, programme about all of this and just like the private companies that are now involved in the space programmes in the USA and other places,there would seem to be companies that want to get involved in fracking but it seems there are plenty of objections and obstructions coming from places on high and the Multis that have vested interests (quelle surprise, pas !) in the fuel industry that would appear to be so that these new companies dont get a look in.

They want to carve this fuel source up amongst themselves and monopolise it

From what i have seen and heard the level of technology needed to get this stuff out of the ground is nowhere near that needed in the current oil and gas industry, and there are companies who have the nous to do it

[pdq1]

All we're asking in the UK is to be treated the same as US consumers are whoever gets it out of the ground. With North Sea Oil we never got to see a penny of it. If oil majors get their hand on fracking the profits would just go to offset the losses they are taking in other parts of the world. Maybe its a sore point about the UK government taxing the stuff but the overheads of extracting shale gas must be miniscule in comparison and we own it not some foreign government.

[Forresl]

By all means let the bid fish do the fracking but the government MUST retain ownership of the gas fields so that they are a national asset. The production company would get production costs plus a bonus and the rest goes into the
public coffers.

[chantilly2]

What we should do is the taxpayer should fund the whole operation till its in profit then the government can sell it off cheap to their cronies.
After all thats how its worked with everything else up till now

[hessian]

Provided that the Petroleum companies guarantee insurance cover for householders against any damage caused by earth tremors arising from gas extraction then it is to be encouraged. The country cannot afford to keep importing from abroad and shouldn't if it is available from home even if the cost to citizens remains unchanged. Will also provide on-going employment.

[Pr54ley]

When South Africa was "white" and the rest of the world refused to deal with them including the supply of oil, about 35 years ago, they started to extract oil from shale and were very successful at it so oil from shale has been around for a long time but I have not noticed any decrease in oil prices.

[bhosie]

USA is about to start building gas plants to convert shale gas to liquid for export. Europe is also rich in gas. International gas prices are bound to fall and multi-nationals will have to follow. Don't forget it was James Parrafin Young who started the oil business in West Lothian by refining easily accessed shale. In the US they are finding much deeper shale deposits so there is likely to be a lot more shale gas available.But the UK needs to sort out its whole energy policy sooner rather than later, including wee Eck's daft ideas ( See latest Adam Smith Report)