IGas Energy who retain an interest in fracking for hydrocarbons in Bassetlaw at their exploratory site at Misson Springs (image above) have just announced a £59 million pound trading loss for 2019. This marked an increase in losses over that declared previously in 2018 of £25 million. Centrica also announcing recently that it was withdrawing its support for partner Cuadrilla for the fracked exploration programme in Lancashire (Preston New Road et al). Energy Minister Kwasi Kwarteng seemingly pulling the Governments interest by declaring that “fracking is over” in the UK. So things are not looking too great for Frackers in the UK and the prospect of fracking the Springs in the near future, if at all, looks ever remote.
In the US things are also pretty dire. The US Fracking Industries pin up boys Chesapeake Energy filing for bankruptcy with losses of many billions and Whiting Petroleum also going down the pan recently. No restructuring is going to put the Fracking business in the black, it is a business that survives on debt, high oil & gas prices, the availability of cheap money and a lot of hype.
The future for energy usage and generation in the UK is in insulation of the UK’s housing stock, home grown insulation, underwritten by Government to the tune of £2 billion (announced today as part of Rishi Sunaks Green Jobs Drive) and renewables.
Hope Springs Eternal, the mantra perhaps of IGas and partner Ineos for their Bassetlaw licence areas looks increasingly like wishful thinking, and from this writers point of view, that is very good news indeed.