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UK Shale Gas – Impending Boom or Arrested Development?


Much has been said in the United Kingdom about the potential for shale gas to transform the UK energy market as it has in the United States, where wholesale gas prices are a third of those paid by British consumers. The British Geological Survey estimates that the UK’s main shale formation, the Bowland Shale (Figure 1), has some 1,300 Tcf of gas in place. With annual gas consumption in the UK at around 3 Tcf, this alone could amount to decades of supply even at very conservative estimates of economically recoverable reserves. There are, however, significant obstacles to U.S.-style growth in the UK shale gas industry.
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In The Headlines

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REMIT: Bringing Physical Commodity Trading into the Regulatory Spotlight


As far back as the 1986 Financial Services Act, regulators in the UK have had the authority to oversee activities related to commodity derivatives, but until recently, their presence was negligible. Despite the advent of the Financial Services and Markets Act in 2000 and a move from self to statutory legislation, the regulatory focus on commodities remained limited. The weight of rule-making was restricted to just two small handbooks—one for energy market participants (EMPs) and one for oil market participants (OMPs). With the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), however, that is about to change. In this article, David Wardley and Owen LaFave discuss REMIT, its anticipated impact and what companies need to do to ready their organizations for compliance.
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Topic of Discussion

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Potential: The Essential Quality When Assessing CEO Candidates


The challenges facing CEO succession planning in the oil and gas industry are well-known. An industry-wide slump from 1982 to 2000 resulted in a missing generation of managers—exactly the cohort who now should be preparing to take the reins. That demographic shortage has collided with the industry’s resurgence, driven by the dramatic influx of private equity investment and a wealth of promising new technologies. This combination of forces not only means that there are fewer potential CEO candidates, but that to be successful, those candidates must be able to seize opportunities and mitigate risks in an industry undergoing fundamental changes in how it does business.
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