Large scale fracking lends itself to countries that have the desired resources to support it
SF Fundamental Energy Fund, which invests in the key providers of equipment and services to global energy markets questions the viability of fracking in the UK.
Christopher Boxall, Director of Fundamental, says:
“Large scale fracking lends itself to countries that have the desired resources to support it, specifically freely available quantities of sand and water, to effectively support the process; the UK does not possess these resources, at least not in the required quantities”
Fundamental Asset Management is a specialist investor in providers of equipment to the energy sector, including fracking, and has seen at first hand the big demands on raw materials and space from fracking. The fracking process requires huge quantities of sand (proppant) and water which are pumped into the ground at high pressure. The water, which is mixed with other chemicals, subsequently has to undergo considerable treatment. North America has a vast infrastructure to support the delivery of sand, which is generally transported by rail. It also has vast amounts of space to cater for the treatment of waste water.
Christopher Boxall, Director of Fundamental, adds,
“Total’s proposed investment of £30m in a shale gas project in Lincolnshire is a token gesture compared to the US$billions that have been committed to fracking in other parts of the world, notably North America, and the £billions that would ultimately be needed to commercially exploit shale gas in the UK.”
13th January 2014
For further information please contact:-
Fundamental Asset Management
Christopher Boxall, Director
Tel: +44 (0)1923 713893
Notes to Editors:
Fundamental Asset Management Ltd is a firm of investment managers/analysts authorised and regulated by the Financial Services Authority.