The coalition's support for fracking is based on ideology, not evidence

The government's dash for gas will increase energy bills, not reduce them.

Today the temporary moratorium on fracking in Lancashire was lifted, completing a journey to redemption for the UK shale gas industry since Cuadrilla caused two small tremors in Blackpool last year. Fracking has been given a green light.

It’s the latest pro-shale move from a coalition government gone fracking crazy. The first two weeks of this month alone have seen George Osborne announce tax breaks for the shale gas industry, Boris Johnson compose a paean to fracking in his Telegraph column and David Cameron tell the House of Commons Liaison Committee that Britain must be part of a "shale gas revolution".

The enthusiasm for shale gas among many in the Conservative Party, and beyond, is partly based on the notion that it will bring down energy bills for consumers. In his Autumn Statement, Osborne justified his fracking tax break by arguing that: "we don't want British families and businesses to be left behind as gas prices tumble on the other side of the Atlantic”.

Fracking indeed caused gas prices to fall in the U.S (although they’ve since rebounded somewhat). And the hope of a similar nosedive has led to the Chancellor staking the future of the UK’s energy system, and the size of our energy bills, on natural gas.

So how likely is it that we’ll enjoy a US style fracking revolution here? Not very, say experts. Analysts at Deutsche Bank, the International Energy Agency (IEA), Ofgem, the European Commission, Chatham House and others, have all concluded that the fall in gas prices seen in the U.S. will not be replicated in Europe. Deutsche Bank, for example, concluded that “those waiting for a shale gas ‘revolution’ outside the US will likely be disappointed, in terms of both price and the speed at which high-volume production can be achieved”. While the IEA have outlined how European shale gas will be 50 per cent more expensive to extract.

Yet Osborne is betting the farm, and the UK’s energy future, on fracking bringing costs down enough to make it economic to run almost half our power supply off gas. At his behest, the Department for Energy and Climate Change last week published its Gas Generation Strategy, which aims to incentivise the construction of up to 40 new gas-fired power stations. Given that the UK already relies on gas for most of its heating and much of its electricity, this move to increase our reliance on an increasingly expensive fuel represents a considerable gamble with consumers’ money. It comes as government advisers, the committee on climate change, today warned that Osborne’s ‘dash for gas’ could increase our energy bills by £600 over the coming decades. The committee cast the low carbon route, which would see bills rise by only £100 by 2020, as an insurance policy against rising gas prices.

There is also the small matter of local opposition to fracking. One Conservative MP has described opposition to windfarms as being a "walk in the park" compared to shale gas. While recent analysis by Greenpeace found that over 60 per cent of England is currently under ‘license block’ consideration for the development of shale gas. Much of this gas is hidden under the Home Counties and, as the residents of Balcombe in West Sussex have demonstrated, fracking is not welcome in these parts.

Earlier this week, leading energy expert, Professor Paul Stevens of Chatham House, went as far as to describe George Osborne’s plan for a dash for gas as "misleading and dangerous" Misleading because it is based on the mirage of lower gas prices resulting from fracking; dangerous because the dash for gas threatens to pull much needed resources away from clean energy and thus poses a significant threat to our efforts to tackle climate change.

In fact, Osborne’s plans to incentivise the construction of 40 new gas power stations are predicated on dismantling key climate laws. Last month, a Greenpeace investigation revealed Osborne’s plans to unpick the Climate Change Act. These plans took a step forward with the publication of the Gas Generation Strategy, which outlines how “gas could play a more extensive role, with higher load factors, should the 4th Carbon Budget be revised upwards.” 

Precisely why Osborne has chosen to ignore the facts in order to pursue his dash for gas is for others to speculate. But for consumers up and down the UK, not to mention our attempts to tackle the urgent threat of climate change, it would be infinitely more reassuring if our energy policy was based on evidence rather than ideology.

Demonstrators protest against hydraulic fracturing for shale gas outside parliament in London on December 1, 2012. Photograph: Getty Images.

Lawrence Carter is a climate campaigner at Greenpeace

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.