The recent development of shale gas in North America has transformed their gas-market outlook. The company Cuadrilla is set to re-commence exploratory hydraulic fracturing (fracking) in Lancashire, after a temporary moratorium ended in December, and there is interest in whether shale gas could affect the UK gas market.

Increased interest has led to a number of estimates of the UK's shale gas potential, and widespread reference to 'resource' and 'reserve' estimates. POST has produced a POSTbox ( PDF 210 KB) to clarify the difference between 'resources' and 'reserves' and explain the state of current estimates. It highlights the gaps in knowledge and how estimates could be improved using both new and existing data. Current estimates suggest there is enough shale gas to supply the UK for a number of years. However, there is no official evidence to demonstrate whether this gas can be extracted commercially or not.

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