header image

Back To PressIndustry News

Government provides mixed signals for fracking

EIC Energy Markets Team - August 2011

The Government has not reacted as warmly to the use of shale gas in the UK as some of its ministers. While the Energy and Climate Change (ECC) Committee indicated no problems with the use of fracking to secure shale gas, the official response has not been as keen. The use of the process has been banned in France and is controversial in the US. While opponents of the technology have raised issues over its safety and environmental impacts, the UK Government appears more concerned over the impact of supply security. The current policy is a shift away from fossil-fuels and high carbon generation.

Earlier this year, the ECC Committee had raised no issues over safety for the use of fracking, urging the Government to clear projects when they are proposed. The group indicated that current regulation would ensure sufficient protection. The Government agreed with this position, highlighting the quick reaction to the tremors around the Bowland Shale project, in Lancashire.

The exploratory project being conducted by Cuadrilla is currently on hold pending a seismic study. However, it did indicate the use of shale gas in generation could come under increasing restrictions as the country moves away from fossil fuels. This was not an opposition to shale gas itself, but a reference to gas-fired generation overall. There are plans ultimately to require all such facilities to use carbon capture and storage (CCS) which would reduce the economics of using the technology in the UK.

In its response to the ECC recommendations, the Government stated, "(It) recognises the need to take a balanced approach and does not believe that security of supply considerations will be the main driver of policy in relation to the exploitation of shale gas in the UK."