This will change everything

SHALE GAS AND BRITAIN’S ENERGY FUTURE

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ENERGY IMAGINATION
PROMOTING SHALE GLOBALLY SINCE 2008

www.nohotair.co.uk
 WHAT IS NO HOT AIR?
A No Carbon future - but no hot air. Global warming is real. Any hoax lies in how much we are
asked to pay to solve it.

We believe the weight of scientific consensus supports both anthropogenic global warming and
the safety of shale gas production.

Shale gas provides a quick, clean low or no cost solution to energy, and economic, problems.

Gas is neither a permanent or the only solution

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 Shale in sixty seconds
• Exact same methane as existing natural gas. We knew it was there, but not how to get it.

• NOT the Alberta Oil Sands

• Replacing coal with gas can save 30% of all UK carbon by 2020

• Combination of horizontal drilling and hydro fracturing with technology led to accessing of shale rock

• Massive game changing potential realised in North America

• How big: Tarrant County Texas Q3 2010: 4.75 Billion CM

• Marcelllus Shale 15 TCF Reserves 2006 500 TCF 2007. Second largest gas field in world from nowhere
 The lessons from North America

• Unconventional gas is rapidly becoming conventional

• The reality is outrunning the hype

• The most optimistic predictions have been exceeded

• Resources are significantly greater than first thought

• Technological innovation and cost reduction is continual

• The rest of the world has a late-comer advantage

 Problems? Does Europe lack..
• Geology

• Tax breaks

• Widely dispersed populations

• Easy Access to the Gas Grid

• Limited Environmental Control

• Service Industry Capability N

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 Geology
• Potential v Actual

• We need firm statements that there are substantial (game

changing?) shale reserves in Europe

• It will be months

• weeks

• or days...
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• But this will happen in 2011 AIR
 Tax breaks
• Tax breaks jump started US shale production

• But tax breaks are no longer necessary either in the US or Europe

• Recent costs below $2MMBTU or less.

• Subsidy Junkies: Nuclear, Wind, Gas Storage, Big Pipe Projects, Solar, Coal CCS, Tidal,
Biomass and Electric Vehicles

• Gas neither requires or asks for subsidy.

• The opposite: Domestic on-shore gas creates wealth, jobs and tax income
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 Widely dispersed populations

• Europe’s population is greater - but concentrated in urban areas

• Netherlands example: High density and high agricultural exports

• Substantially empty rural areas: Lebork City Poland: 1963 persons per sq km

• Lebork County: 90 persons per sq km. Fylde 462

• Tarrant County Barnett Shale: 768 persons per sq km

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 Widely dispersed populations

• Current best practice is multiple wells from a single pad

• Provides lower costs and higher production

• One pad per 5+ square miles

• One pad may exist for as little as 60 days

• Europe’s land ownership rules work in favour

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 Easy access to the gas Grid

• Third party access easily available. Works with current UK onshore

production

• Nationwide gas grid reaching 95%+ of UK population

• Lower transportation distances

• Local energy = sustainable energy

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 Environmental control
• UK and EU regulations are tougher than in the US

• No flow back ponds. Strong water treatment and disposal obligations

• Noise and visual regulations. HSE, Worker Protection stronger

• Local planning regulations over national

• Open disclosure on fluids and anything else.

• No discouragement of drilling so far N

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• Entrepreneurs have considerable incentive to manage risk
 Service Industry

• Low rig count reflects low on shore market

• Services will supply demand

• Existing European and International service companies on the ground

• Ramp up in weeks or months

• Cuadrilla example: Italian rig,Yorkshire drilling sub contractor, wide range of

UK based service providers

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Potential for fracking expertise to be diverted to other international markets
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 Can shale gas change everything?

• or is it more important than that?

• Most of us gain. Taxes, balance of payments, economic expansion, fuel

poverty

• The conventional wisdom loses. But not without a fight

• We need the great news of shale to reach the rest of government

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