The Government has paved the way for shale gas exploration in the UK by allowing controversial "fracking" to resume after a hiatus of more than a year.

Moves by gas firm Cuadrilla to exploit the unconventional gas in Lancashire were put on hold after hydraulic fracturing or fracking, which uses high-pressure liquid to split rock and extract gas, caused two small earthquakes last year.

Energy Secretary Ed Davey said fracking could resume in the UK, subject to new controls which aim to reduce the risk of seismic activity. Mr Davey said shale gas represented a promising new potential energy resource for the UK, although it was not yet known what contribution it could make to the energy mix, jobs and the economy.

Cuadrilla hopes to secure the necessary planning permission and permits to resume fracking in the coming months and have initial data on the amount of gas it might be able to exploit from the shale near Blackpool by the middle of next year.

But the news that fracking could restart has been greeted with dismay by opponents, who fear shale gas operations could pollute water supplies, cause tremors and lead to the drilling of well sites in the countryside.

Environmentalists also warn that a continued reliance on gas would prevent the UK meeting targets to tackle climate change.