MPs warn fracking may not bring down gas prices
George Osborne's plan to curb rising energy bills by unleashing a fracking revolution was dealt a further blow yesterday after a cross-party committee of MPs cast doubt on whether any boom in shale gas production will bring down gas prices.
A study by the Commons Energy and Climate Change Committee concluded: "It is by no means certain that prices will fall as a result of foreign or domestic shale gas development."
Tim Yeo, chairman of the committee, said: "Ministers 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."
Mr Yeo's comments contrast with Mr Osborne's assertion in last month's Budget, when the Chancellor announced generous tax breaks for fracking companies and hinted at financial incentives to persuade local communities to join the shale gas rush.
"I want Britain to tap into new sources of-low cost energy such as shale gas. Shale gas is part of the future. And we will make it happen," said Mr Osborne, who has placed gas at the centre of Britain's power-generation strategy.
Shale gas is extracted from the rock through the controversial practice of fracking, or hydraulic fracturing, a technique that releases the hydrocarbons by blasting a mixture of sand, chemicals and water into them.
Cuadrilla, an energy firm chaired by the former BP chief executive Lord Browne, is currently the only company that is fracking in the UK, although it is still at the exploration stage.
Sales of the tablet are set to fall again, say analysts
Met Police confirm that there was a 'minor disturbance'
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake report claiming the street artist's identity has been revealed
- 3 Are you ready for Crazy Doritos, the red-hot snack food craze sweeping Mexico’s streets?
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Isis in Kobani: US resupplies Kurdish fighters by plane - then Turkey allows reinforcements through its border
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming the street artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...