Government backtracks on fracking
Ministers decide there is not enough gas under UK to justify controversial 'earthquake' drilling
Sunday 20 May 2012
Related articles
The Government has rejected shale gas technology as a solution to Britain's energy crisis, conceding it will do little to cut bills or keep the lights on.
Supporters of the fracking technology – which blasts water, sand and chemicals at extreme pressures to release gas trapped deep in rock – argue it could be the single greatest factor in transforming Britain's energy market, reducing our reliance on foreign imports and dramatically reducing costs.
But The Independent on Sunday has learned that industry experts made clear at a meeting attended by senior ministers, including David Cameron and Ed Davey, the Lib Dem energy secretary, that the UK's reserves were smaller than first thought and could be uneconomical to extract.
Now senior coalition figures have agreed that shale gas has the potential to be deeply controversial without securing major benefits in lowering carbon emissions or reducing energy costs.
The revelation, ahead of the publication this week of major reforms of the energy market, will be welcomed by green campaigners who have been deeply opposed to clearing the way for a new generation of gas power plants, and voiced serious concerns about the environmental impact, including the potential for fracking to trigger earthquakes and contaminate water supplies.
Joss Garman, from Greenpeace, said: "The shale gas bubble has burst. Despite all the hype, even the energy companies now acknowledge shale gas isn't the answer to Britain's energy needs. Ministers are having to face up to the fact that there isn't much of it, it won't bring down bills, and it's damaging to our climate."
The Prime Minister convened the Downing Street summit to hear from companies including Shell, Centrica and Schlumberger, which have been working on shale gas projects in America and exploring the potential of supplies in Ukraine and China.
The ministers were told Britain was not in a position to exploit vast amounts of its own shale gas stores. "The reserves aren't absolutely huge compared with the likes of America, Ukraine and North Africa," said a senior government source. "And we are relatively densely populated. It is a question of how much we can get out, and at what cost. There is a not-insignificant amount of domestic supply, but not a game-changing amount."
Mr Davey now rejects the idea that a rush to bring shale gas online will have the biggest impact on reducing household energy bills. Speaking after the Downing Street meeting, he said industry experts were "clear that it would take time for shale gas to be exploited in the UK" and cautioned that the reserves "are not quite as large as some have been speculating".
In 2010, a British Geological Survey estimated that, based on experience in the US, UK shales could hold 150 billion cubic metres of gas, equivalent to roughly two years' of UK demand. While some shale gas exploration in the UK could still go ahead, it will be "very cautionary", with tight regulations on both environmental impacts and the effects on people living near by. The energy company Cuadrilla Resources has admitted that operations to exploit a substantial shale gas field near Blackpool were responsible for two earth tremors a year ago.
Mark Hanafin, managing director of the energy production division of Centrica, played down the UK's potential to cash in on the technology. "UK shale production... I think it's important and we should develop it, but I don't think it's going to be a game changer," Mr Hanafin said in Paris earlier this month, according to Dow Jones.
A Shell spokesman said that "development will be a bit slower in Europe" because of problems of both geology and community impact. "UK shale gas is unproven geologically, but we are taking a look to see what the potential might be."
On Tuesday, Mr Davey will publish the Government's long-awaited Energy Bill, promising that it will bring down energy bills and secure future supplies. He will make clear that Britain must not be dependent on gas, despite George Osborne's insistence in the Budget that "gas is cheap, has much less carbon than coal and will be the largest single source of our electricity in the coming years". Jennifer Webber, from the industry body RenewableUK, said the reforms must instead "ensure that the expansion of renewable energy is at the heart of our energy strategy".
From the blogs
Dish of the Day: Short & Sweet
I know Dan Lepard nabbed it first for his wonderful book on baking but I’m eternally jealous, as it ...
Friday Book Design Blog: Blurb special
Let's talk book blurbs, those quotes you get, usually from other writers, that are meant to entice y...
Syria’s cannibal rebel defends himself
Much has been written this past week about a Syrian rebel named Khalid al-Hamad, who goes by the nom...
Enslaved to maize: Why we need to re-think Malawi’s agricultural future
Maize is a political crop that has essentially enslaved Malawi as a nation. Despite being the staple...
- 1 Stoke City investigate 'religious abuse' after 'pig's head is found in Kenwyne Jones' locker'
- 2 Gove’s lesson: spare the comma, spoil the child
- 3 Heading for America? Prepare for the longest US immigration queues ever
- 4 Grace Dent on TV: Extreme Couponing, My Strange Addiction, and Here Comes Honey Boo Boo, TLC
- 5 Join Ryanair! See the world! But we'll only pay you for nine months a year
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
iJobs General
PHP/ Drupal Developer - £35k - WC
£30000 - £40000 per annum + BENS: Progressive Recruitment: Drupal Developer A ...
C# WEB DEVELOPER
£45000 - £50000 per annum + bens: Progressive Recruitment: C# WEB DEVELOPER Le...
WPF Developer (C#, VB.Net) - North East - 6 Months
£240 - £260 per day: Progressive Recruitment: WPF Developer (C#, VB.Net) North...
KS2 PPA teacher
£85 - £120 per day: Randstad Education Cheshire: KS2 teacher needed to do PPA ...
The price of pacifism
Jason Isaacs: Groupies, theatre bores and James Bond
Sealand: 'Micronation' or illegal fortress?
One man returns to Argentina's town that drowned
Gordon Ramsay's worst nightmare: A restaurant he cannot save
Why bitters are back on the bar
The 10 Best barbecues


Comments