Journal Article

State ownership of petroleum resources: an obstacle to shale gas development in the UK?

Meri-Katriina Pyhäranta

in The Journal of World Energy Law & Business

Volume 10, issue 4, pages 358-366
Published in print August 2017 | ISSN: 1754-9957
Published online June 2017 | e-ISSN: 1754-9965 | DOI: https://dx.doi.org/10.1093/jwelb/jwx013
State ownership of petroleum resources: an obstacle to shale gas development in the UK?

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Abstract

Shale gas development in the UK has been slow due to various challenges to the industry. One of them is the state ownership of shale gas resources, which leaves private landowners without any rights to shale gas resources under their land. This article explains why the private ownership of petroleum resources contributed to the rapid shale gas development in the USA and how the different ownership model is a potential barrier to the development in the UK. It is argued that as long as private landowners have no incentive to support shale gas production on private land, shale gas development is delayed by the landowners' reluctance to provide energy companies the right to access their land. Therefore, in order to enhance the cooperation between landowners and energy companies, and thus support the shale gas development in the UK, landowners' rights and interests should be better taken into account in the regulatory framework.

Journal Article.  5076 words. 

Subjects: Environment and Energy Law

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