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THE UK shouldn’t expect to enjoy a US-style energy revolution, whatever the size of its shale gas reserves, according to parliament’s Energy and Climate Change Committee.

In its latest report, the cross-party committee cautions that while shale gas production in the UK could help with energy security and boost government tax revenues, much work needs to be done before it has an impact on the energy market. At the moment, it points out, it’s not even known how big the country’s recoverable reserves may be, and shale gas development remains a controversial political issue.

“It is still too soon to call whether shale gas will provide the silver bullet needed to solve our energy problems,” says committee chair Tim Yeo. “Although the US shale gas has seen a dramatic fall in domestic gas prices, a similar ‘revolution’ here is not certain.”

Among the differences the committee reports are those related to geology, regulations and public attitudes. It also notes that the UK has a much higher population density than the US, and its laws over mineral rights mean that landowners are unlikely to be paid royalties for any gas produced on their property, making them less willing to allow drilling in the first place.

Yeo adds that even if shale does become exploited on a commercial scale, the government should be careful “not to base energy policy on an assumption that gas prices will fall in future as a result of shale gas production.”

“Rising global demand for gas, particularly from Asia, could limit any potential price reductions.”

An immense boom in shale gas – gas trapped within huge rock formations rather than conventional reservoirs – has seen US energy prices drop to record lows within recent years. It has also spurred a massive resurgence in the petrochemicals industry, which is racing to take advantage of reliable, cheap feedstock.

The UK government has been keen to follow in the US’ wake, and highlighted shale gas as one of its priorities in its latest budget. Industry, however, has been slow to respond to the call. Two years ago Cuadrilla Resources, the country’s most prominent shale gas explorer claimed to have discovered “vast” reserves in the country’s Bowland Shale, but a series of delays and a moratorium on hydraulic fracturing – one of the techniques vital to exploiting shale – have seen it push back plans to test its finds until 2014.

“If substantial shale resources do turn out to be recoverable in the UK – and community concerns can be addressed – then it could limit future energy price rises, reduce our reliance on imported gas and generate considerable tax revenues,” says Yeo.

“The government has dithered on this issue and should now encourage companies to get on and drill, to establish whether significant recoverable resources exist. “

The committee also points out that if the UK is to exploit shale gas and still hits its emission reduction targets, developing carbon capture and storage (CCS) technology “will be absolutely essential.”

“The current slow pace of CCS development is incredibly frustrating,” says Yeo. “We intend to keep a close eye on DECC’s progress in this area.”