A single issue, non-affiliated, cross-community network of local people with a peaceful ethos and a positive vision for our county's development, working to raise awareness of the risks associated with shale gas extraction.
In what it has called ‘the starting pistol at the latest stage of the race’, the Telegraph newspaper has reported that fracking, or Unconventional Shale Gas Extraction (USGE), whilst touted as the solution to our energy problems, does in fact come with big risks.
They state: “If all goes to plan, the UK’s 14th onshore licensing round will replicate the kind of shale revolution that has helped to power the US economy out of the financial crisis. But get it wrong and fracking in Britain, which comes with a fair share of environmental risk, will become too politically toxic for any future government to consider.”
Amber Rudd, Energy and Climate Change Secretary has stated that whilst the United Kingdom has not moved as fast as U.S. counterparts on the other side of the Atlantic on the subject of fracking, all of that is about to change.
She stated in an interview with the BBC: “What we’re signalling today is the delays that have been taking place on deciding if these [unconventional shale gas extraction] applications could go ahead, have simply been taking too long. Local authorities are still going to be very much involved, but the secretary for communities and government will have an increased role in making sure they stick to the planning timetable which is already in place.”
In an interview with Bloomberg News, Minister of State for Environment and Climate Change Matt Hancock expressed his desire for Unconventional Shale Gas Extraction to proceed despite the fact that recent drastic diminishing oil and gas prices may make the energy extraction process even more unprofitable for both government and corporations.
When asked by co-anchor Guy Johnston that current low oil and gas prices may postpone and delay the need to extract methane gas from the strata of the UK, Hancock denied any reduction in what he called a ‘neccessity’ to drill for methane gas as he looked to minimise any fear that gas prices were being hit as hard as oil prices. In response, Johnston gently forced the Minister to confirm that it follows that gas prices diminish soon after oil prices. The minister firmly replied:
“The contracts are tied. This is a long term project for the UK, we’re right at the start of a long term project [that] has cross party support in the UK for the principle of getting this potential that could be enormous out of the ground. Geologists are clear that there is a huge quantity of gas deep underneath the UK. The question is how much of it we can economically recover. There are planning decisions this month…and later this year just to get the first extraction out….. It’s an exciting prospect. It is the duty of the government to [make sure] it happens.”
When challenged again by female co-anchor Francine Laqua on the fact that oil and gas prices are diminishing and that this would reduce the sense of urgency for unconventional shale gas extraction, the Minister replied:
“I don’t think that’s quite right, [as] the benefits are not only obviously just for getting the shale out of the ground for the companies involved, but also [for] the security of supply domestically.”
In an interview that did little to tackle scientifically proven environmental or social liabilities of the practice of Unconventional Shale Gas Extraction experienced elsewhere around the globe, the Minister further reconfirmed that significantly lower natural gas prices in the UK will not have any impact on the desire of the UK government to conduct the controversial process of fracking.
When Anchor Johnston, by way of analogy, stated that if methane was extracted at a price that was higher than the selling price, an economic loss would be incurred, inparticular if gas prices are tied to oil prices. The Minister for Energy and Climate Change stated in response:
“From the government’s point of view….the benefits remain…. In terms of companies who may be looking to take part, we’ve got to make the margins work….we need to change the fiscal regime [to make it] economic.”
Anchor Lauqua questioned if the government planned on giving any benefits to alleviate the [financial] burden [of lower sales price for oil and gas] for the drillers. To view the Minister’s measured response to Anchor Laqua’s question, you may watch the Bloomberg interview in full, click the link below.
The right honourable Matt Hancock not only serves as Minister for the Environment and Climate Change, but also as Minister of State at the Dept. of Business, Innovation and Skills. Previously he gained a Masters degree in Economics from the University of Cambridge.