If fracking is just oil which needs tax breaks to compete, what's the point?

If George Osborne likes expensive energy, at least renewables are carbon neutral.

George Osborne has announced that the fracking industry is to be taxed at significantly lower levels than the rest of Britain's extractive industries. The Guardian's Terry Macalister and Fiona Harvey report:

The Treasury has set a 30% tax rate for onshore shale gas production. That compares with a top rate of 62% on new North Sea oil operations and up to 81% for older offshore fields.

The oil industry has high levels of taxation because natural resources are considered collective property: the state owns all oil, gas, coal, gold and silver in the UK. That means that the oil companies ought to make a profit on the extraction of the oil, but not on the ownership of it. In practice, the distinction is long forgotten, but the high tax rates (and requirement for a license before exploitation begins) keeps the spirit alive.

The discount on shale gas production – or "fracking", as it's more commonly known – is to make what might otherwise be an uneconomical method of extraction slightly more business friendly. As such, the question which needs to be asked is whether we actually want this extraction to be business friendly or not. If, as seems likely, we already know about more conventional oil and gas than we could actually burn, then the business case for fracking is irrelevant: we should not extract those fuels, because we should not burn them.

Obviously, George Osborne, several years on from "vote blue, go green", doesn't particularly care about climate change, so that argument isn't going to hold. But there's a curious disconnect between the rhetoric around fracking, even from its supporters, and the practice here.

Fracking was supposed to be the end of peak-oil fears. Rather than running out of easily extractable oil, and being forced to switch to renewables, we can instead make the most of the rising oil price to use more expensive methods of extraction. That puts off the switch just a bit further into the future, and lets another generation of politicos bury their heads in the sand. (Alright, supporters of fracking don't include that last bit)

But if fracking needs financial support to be competitive with conventional oil then it's not really anything other than a more expensive way to dig up fossil fuels. And if we want more expensive forms of energy, we already have some which are carbon neutral and can't run out. Why would we want fracking against them?

Yoko Ono poses with an installation of hers. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Getty
Show Hide image

This election has sparked a weird debate – one in which no one seems to want to talk

 The noise level hasn’t risen above a low gurgle in the background.

If this is a general election in which the tectonic plates are shifting, they’re the quietest tectonic plates I’ve ever heard. All the parties are standing on pretty radical platforms, yet the noise level hasn’t risen above a low gurgle in the background, like a leaking tap we can’t be bothered to get fixed.

Big issues are being decided here. How do we pay for care, or health, or education? How do we square closed borders with open trade, and why isn’t anyone talking about it? Democracy is on the line, old people are being treated like electoral fodder, our infrastructure is mangled, the NHS is collapsing around us so fast that soon all that’s left will be one tin of chicken soup and a handful of cyanide capsules, and we face the prospect of a one-party Tory state for decades to come. All this and yet . . . silence. There seem to be no shouts of anger in this election. It’s a woozy, sleepy affair.

I knew something was afoot the moment it was called. Theresa May came out of No 10 and said she was having an election because she was fed up with other parties voting against her. No one seemed to want to stand up and tell her that’s a pretty good definition of how functioning democracy works. Basically, she scolded parliament for not going along with her.

Why were we not stunned by the sheer autocratic cheek of the moment? With news outlets, true and fake, growing in number by the day, why was this creeping despotism not reported? Am I the only one in a state of constant flabbergast?

But the Prime Minister’s move paid off. “Of course,” everyone said, “the real argument will now take place across the country, and we welcome,” they assured us, “the chance to have a national debate.”

Well, it’s a pretty weird debate – one in which no one wants to talk. So far, the only person May has debated live on air has been her husband, as Jeremy Corbyn still wanders the country like an Ancient Mariner, signalling to everyone he meets that he will not speak to anyone unless that person is Theresa May. Campaign events have been exercises in shutting down argument, filtering out awkward questions, and speaking only to those who agree with every word their leader says.

Then came the loud campaign chants – “Strong and stable” versus “The system’s rigged against us” – but these got repeated so often that, like any phrase yelled a thousand times, the sense soon fell out of them. Party leaders might as well have mooned at each other from either side of a river.

Granted, some others did debate, but they carried no volume. The Ukip leader, Paul Nuttall, achieved what no one thought possible, by showing the country that Nigel Farage had stature. And there’s a special, silent hell where Tim Farron languishes, his argument stifled at every turn by a media bent on quizzing him on what sort of hell he believes in.

Meanwhile, the party manifestos came out, with titles not so much void of meaning as so bored of it that they sounded like embarrassed whispers. Forward, Together; The Many Not the Few; Change Britain’s Future: these all have the shape and rhythm of political language, but nothing startles them into life. They are not so much ­clarion calls as dusty stains on old vellum. Any loosely connected words will do: Building My Tomorrow or Squaring the Hypotenuse would be equally valid. I still pray for the day when, just for once, a party launches its campaign with something like Because We’re Not Animals! but I realise that’s always going to stay a fantasy.

Maybe because this is the third national vote in as many years, our brains are starting to cancel out the noise. We really need something to wake us up from this torpor – for what’s happening now is a huge transformation of the political scene, and one that we could be stuck with for the next several decades if we don’t shake ourselves out of bed and do something about it.

This revolution came so quietly that no one noticed. Early on in the campaign, Ukip and the Conservatives formed a tacit electoral pact. This time round, Ukip isn’t standing in more than 200 seats, handing Tory candidates a clear run against their opponents in many otherwise competitive constituencies. So, while the left-of-centre is divided, the right gets its act together and looks strong. Tory votes have been artificially suppressed by the rise of Ukip over the past few elections – until it won 12.6 per cent of the electorate in 2015. With the collapse of the Ukip vote, and that party no longer putting up a fight in nearly a third of constituencies, Theresa May had good reason to stride about the place as cockily as she did before the campaign was suspended because of the Manchester outrage.

That’s why she can go quiet, and that’s why she can afford to roam into the centre ground, with some policies stolen from Ed Miliband (caps on energy bill, workers on company boards) and others from Michael Foot (spending commitments that aren’t costed). But that is also why she can afford to move right on immigration and Brexit. It’s why she feels she can go north, and into Scotland and Wales. It’s a full-blooded attempt to get rid of that annoying irritant of democracy: opposition.

Because May’s opponents are not making much of this land-grab, and because the media seem too preoccupied with the usual daily campaign gaffes and stammering answers from underprepared political surrogates, it falls once again to the electorate to shout their disapproval.

More than two million new voters have registered since the election was announced. Of these, large numbers are the under-25s. Whether this will be enough to cause any psephological upsets remains to be seen. But my hope is that those whom politicians hope to keep quiet are just beginning to stir. Who knows, we might yet hear some noise.

This article first appeared in the 25 May 2017 issue of the New Statesman, Why Islamic State targets Britain

0800 7318496