Cuadrilla Resources

Last updated

Cuadrilla Resources
Industry oil and gas exploration
FounderChris Cornelius
Headquarters,
England, United Kingdom
Key people
Roy Franklin, Chairman (2015-present), Lord Browne, Chairman (2007-2015), Francis Egan, CEO [1]
Products shale gas, oil
OwnerA.J. Lucas (93%), Cuadrilla Employees (7%)
Website cuadrillaresources.com

Cuadrilla Resources is an oil and gas exploration and production company founded in 2007. It is headquartered in Bamber Bridge, Lancashire, [2] and has operations in the United Kingdom. The company intend to develop shale gas in the UK by using hydraulic fracturing. Its chairman is Roy Franklin, who is also deputy chairman of Equinor. Its chief executive is Francis Egan.

Contents

Corporate structure

Cuadrilla is a privately owned company with headquarters in the United Kingdom. [3] The company was founded in 2007, financed with investment from the Australian engineering company A.J. Lucas and the American equity firm Riverstone Holdings. [4] It is owned 93% by AJ Lucas, while Cuadrilla employees (including former employees) own the remaining 7%. Riverstone Holdings sold their previous 45% stake to AJ Lucas and exited the business in February 2020. [5] [6] :5 In 2009, Riverstone had settled corruption charges in New York through its partner The Carlyle Group. [7]

In April 2015, Roy Franklin, Deputy chair of the Board of Statoil ASA, and board member of Santos Ltd, Kerogen Capital Ltd and Amec Foster Wheeler, [8] replaced Lord Browne, who had been chairman since 2007. [9] The chief executive is Francis Egan.

Operations

As of 2013, the company held licences for ten sites in the UK and had drilled three wells, all in Lancashire, [10] one of which has been hydraulically fractured since 1993 by a previous owner; The company produces gas from that well, completed in sandstone.[ citation needed ]

Lancashire

In 2012 media reported that the find was "so rich it could meet Britain's needs for decades", [15] that shale gas in Lancashire alone could deliver £6 billion of gas a year for the next three decades, [16] and that it had "the potential to do more for Lancashire than the cotton industry." [17] The British Geological Survey, responsible for producing UK's mineral resource inventories, and far more cautious in its estimates, re-evaluated its projections in light of the find. [15]
As of February 2013 Cuadrilla estimated that Lancashire's shale gas could have a market value of £136 billion. [18] and in July 2013, Cuadrilla applied for a permit to hydraulic fracturing of the well it drilled at Grange Hill. [19]
In April 2014, Cuadrilla published news of their continuing consultation with residents shale gas exploration sites in the Fylde. [20] existing gas well at Elswick, near one of its sites in Lancashire, was fracked in 1993 by its then owners, Independent Energy.

Other sites:

Elsewhere in the United Kingdom

A proposed test well, half a mile from Balcombe in West Sussex, scheduled for summer 2013, was the scene of protests. [29] Caudrilla had explained that the drilling would last no more than four months and would not involve fracking, however they were to use acid washing to open natural fractures. Their planning permission was to expire on 28 September 2013. [30] They were to take samples of rock at around 900m (3,000 feet). [31] Cuadrilla suspended its drilling plans in August 2013 after consulting with the Sussex police, citing "threats of direct action against the exploration site". The company said that the halt was done in the interests of safety of the drilling crew, the protesters, and the public. [32]

Other sites:

Poland

In 2012, Cuadrilla was awarded the Pionki hydrocarbon exploration licence in Poland, which covered an area of over 820 square-kilometres in the greater Lublin Trough/Radom-Krasnik High. [33] The northern half of the licence or "Lublin Trough" contained Devonian and Carboniferous shales, while the southern half of the licence or "Radom-Krasnik High" was mapped to contain both Silurian and Devonian shales. [34]

Netherlands

Cuadrilla has two subsidiaries in the Netherlands, Cuadrilla Hardenberg BV and Cuadrilla Brabant BV, for shale gas exploration [35] : 27. The company has previously held two licenses. The one in Noordoostpolder, which covers an area of over 200,000 acres, is composed of Namurian shales. The North Brabant licence, which covers more than 470,000 acres, is made up of Carboniferous, Triassic and Jurassic shales which are thought to contain tight gas, shale gas and oil shale. [36] :6

In 2014, Cuadrilla requested an extension of its permits for the detection of shale gas in those areas. [37] The following year, the government did not agree to an extension of the exploration licences and as a result these expired during 2015 [38] :2.

Hungary

Cuadrilla was previously part of a joint venture for shale gas exploration in Hungary. [34] The investment was sold in 2018 [39] :28. In Tompa 38,796 acres composed of recomplete Miocene were described to contain multi TCF Basin Centred TGS. [36] :6

Controversies

Earthquakes

In December 2018 fracking was halted by a 1.5 magnitude earthquake caused by the fracking operation. [40]

On 22 August 2019 fracking at Preston New Road was halted because of a 1.6 magnitude earthquake caused by the fracking operation. [41]

On 26 August 2019 fracking was halted again because of a 2.9 magnitude earthquake. [42]

In 2022 analysis showed that fracking at Preston New Road in Lancashire caused daily earthquakes during its operation (192 earthquakes in 182 days in 2018-19). [43]

Conflict of Interest

Cuadrilla has also funded, in conjunction with Centrica the North West Energy Task Force [44] which on 8 January 2015 organised an Open Letter to Lancashire County Council in support of fracking. This letter was signed by Jane Watson, [45] sister of Robert Altham, the judge who sentenced three anti-fracking protesters to prison in September 2018. [46]

Claim of economic benefits of hydraulic fracturing

Cuadrilla gave evidence to the British parliament in Westminster in 2011, based on an analysis by Pöyry consultancy, that using the shale gas reserves in Lancashire could lower British natural gas prices by as much as four per cent, and indirectly lower electricity prices. However, at a 2013 meeting in Sussex Cuadrilla's public relations spokesman Mark Linder of Bell Pottinger said: "We've done an analysis and it's [the influence on prices] a very small...at the most it's a very small percentage...basically insignificant." [47]

Misleading advertising

In April 2013, the UK Advertising Standards Authority (ASA) compelled Cuadrilla to withdraw a brochure published the previous year following a complaint by anti-fracking group Refracktion concerning 18 statements it argued were misleading, of which the ASA upheld 6, plus one in part. [23] [48] [49] [50] Cuadrilla reportedly hired Westbourne Communications to assist with its efforts to promote fracking. [51]

Related Research Articles

<span class="mw-page-title-main">Balcombe</span> Village in West Sussex, England

Balcombe is a village and civil parish in the Mid Sussex District of West Sussex, England. It lies 31 miles (50 km) south of London, 16 miles (26 km) north of Brighton, and 32 miles (51 km) east north east of the county town of Chichester. Nearby towns include Crawley to the north west and Haywards Heath to the south south east.

Tompa is a town in Bács-Kiskun county, Hungary.

<span class="mw-page-title-main">Fracking in the United States</span>

Fracking in the United States began in 1949. According to the Department of Energy (DOE), by 2013 at least two million oil and gas wells in the US had been hydraulically fractured, and that of new wells being drilled, up to 95% are hydraulically fractured. The output from these wells makes up 43% of the oil production and 67% of the natural gas production in the United States. Environmental safety and health concerns about hydraulic fracturing emerged in the 1980s, and are still being debated at the state and federal levels.

<span class="mw-page-title-main">Singleton, Lancashire</span> Human settlement in England

Singleton is a village and civil parish in Lancashire, England. It is situated on the coastal plain called the Fylde. It is located south-east of Poulton-le-Fylde, and at the 2001 census had a population of 877, increasing to 889 at the 2011 Census. The parish is sometimes referred to as two parts – Great Singleton is the larger part containing the village, and Little Singleton is a small area north of the village bordering the River Wyre.

<span class="mw-page-title-main">Shale gas</span> Natural gas trapped in shale formations

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<span class="mw-page-title-main">Westby-with-Plumptons</span> Human settlement in England

Westby-with-Plumptons is a civil parish in Lancashire, England. The parish is in Fylde district and contains the hamlets of Great Plumpton, Little Plumpton, Lower Ballam, Higher Ballam, Moss Side, Peel, and Westby. At the 2011 census, the parish had a population of 1,205. Westby and Plumpton are mentioned in the Domesday Book, as "Westbi" and "Pluntun".

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