Three things we learned about UK fracking at the European Geosciences Union’s great debate
More variable gas prices, a need for carbon capture and storage technology and a battle for public acceptance: fracking could bring major changes to the UK’s energy landscape, according to the Energy and Climate Change Committee’s Tom Leveridge today. He addressed five hundred eager scientists at the European Geosciences Union’s ‘Great Debate’ on fracking – part of its annual conference in Vienna.
UK gas prices could drop but become more variable
A key question for the UK is whether or not it can replicate the US’s shale gas boom. Leveridge, one of the House of Commons committee’s energy specialists, at first appeared optimistic this could be the case. He told the audience:
“Prices could fall as a result of shale gas because it could put increasing pressure on oil and gas price indexation, we could get cheaper gas from America, and also we could have domestic production.”
Simply put, if there’s more gas available, then it’s cheaper. And if the UK can produce its own shale gas, then other costs – such as transportation – would be lower, further lowering prices.
At the same time, Leveridge says:
“[D]omestic production, especially in the UK, is likely to be subject to quite strict regulation and if you’re a business, that means it’ll cost more and it means the gas will cost more.”
It’s unclear what shape regulation will take as the industry is still at a very early stage. Leveridge’s comments could offer a glimpse of how the ECC committee thinks UK shale gas regulation should develop – it is expected to publish a new report in the next couple of weeks.
Carbon capture and storage (CCS)
Leveridge adds that the viability of the UK shale gas industry depends whether it’s possible to develop carbon capture and storage (CCS) technology. CCS reduces the polluting effect of burning fossil fuels by catching and locking away greenhouse gas emissions.
Experts say any new gas plants would need to be fitted with CCS if the UK is going to meet its emissions targets. But it’s not looking good for the UK at the moment. There are currently no commercial-scale CCS projects underway after the UK after missed out on EU funding at the end of last year.
Public acceptance
For fracking to go ahead, Leveridge said public acceptance will be a crucial. But it’s currently uncertain how this will play out in local communities. The UK has a much higher population density than the US, and local communities may object to fracking so close by.
Leveridge says it’s still “too early to tell” precisely what role shale gas will play in the UK. But it’s clear from his comments in Vienna there are still a number of obstacles to be navigated if the UK is going to ever have its own shale gas boom.