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Fracking: Shale gas decision by government awaited Fracking: Shale gas decision by government awaited
(about 3 hours later)
Ministers are expected to allow a firm to resume a controversial method known as fracking to exploit what it says are huge shale gas reserves off Lancashire.Ministers are expected to allow a firm to resume a controversial method known as fracking to exploit what it says are huge shale gas reserves off Lancashire.
Cuadrilla had to stop test-drilling in 2011 after fracking caused two minor earthquakes near Blackpool.Cuadrilla had to stop test-drilling in 2011 after fracking caused two minor earthquakes near Blackpool.
The decision due later will be watched closely by the industry and opponents.The decision due later will be watched closely by the industry and opponents.
Meanwhile, government advisers say a dependence on gas could force household bills much higher than relying on renewable energy and nuclear power.Meanwhile, government advisers say a dependence on gas could force household bills much higher than relying on renewable energy and nuclear power.
Strict conditionsStrict conditions
Fracking is a technique that involves drilling holes deep into the ground, then causing tiny explosions that fracture shale rocks to release the gas trapped inside.Fracking is a technique that involves drilling holes deep into the ground, then causing tiny explosions that fracture shale rocks to release the gas trapped inside.
In the US the technique has led to lower energy prices but has also been blamed for polluting water supplies.In the US the technique has led to lower energy prices but has also been blamed for polluting water supplies.
Cuadrilla has said it could supply a quarter of the UK's gas needs from the untapped resources in Lancashire and the government is expected to allow it to resume fracking, but under strict environmental conditions.Cuadrilla has said it could supply a quarter of the UK's gas needs from the untapped resources in Lancashire and the government is expected to allow it to resume fracking, but under strict environmental conditions.
The government has already indicated its backing for such moves by proposing tax relief for shale gas and producing a gas generation strategy.The government has already indicated its backing for such moves by proposing tax relief for shale gas and producing a gas generation strategy.
The chief executive of Cuadrilla Resources, Francis Egan, has said his company is ready to press ahead quickly if it gets the green light.The chief executive of Cuadrilla Resources, Francis Egan, has said his company is ready to press ahead quickly if it gets the green light.
The decision on fracking would also have an impact on other companies looking to get involved in the business in other parts of the UK.The decision on fracking would also have an impact on other companies looking to get involved in the business in other parts of the UK.
Cuadrilla has four exploration drilling sites in Lancashire - three on the Fylde at Westby, Singleton and Weeton, and one at Banks in west Lancashire.Cuadrilla has four exploration drilling sites in Lancashire - three on the Fylde at Westby, Singleton and Weeton, and one at Banks in west Lancashire.
Environmental campaigners are strongly against the move.Environmental campaigners are strongly against the move.
Friends of the Earth senior energy campaigner Tony Bosworth said: "A green light to fracking would spell bad news for local communities and their environment, jeopardise UK climate change targets and help keep the nation hooked on dirty gas for decades.Friends of the Earth senior energy campaigner Tony Bosworth said: "A green light to fracking would spell bad news for local communities and their environment, jeopardise UK climate change targets and help keep the nation hooked on dirty gas for decades.
"Gambling on shale gas is a risk we don't need to take - developing our huge clean power potential and cutting energy waste will create jobs, reduce our fossil fuel dependency and keep the lights on.""Gambling on shale gas is a risk we don't need to take - developing our huge clean power potential and cutting energy waste will create jobs, reduce our fossil fuel dependency and keep the lights on."
Potential costsPotential costs
Shadow energy and climate change secretary Caroline Flint said: "Labour has always said that fracking should only go ahead if it is shown to be safe and environmentally sound."Shadow energy and climate change secretary Caroline Flint said: "Labour has always said that fracking should only go ahead if it is shown to be safe and environmentally sound."
She added: "The idea that this form of gas extraction can have the same impact here in the UK as it has had on gas prices in the United States is considered wishful thinking by most experts."She added: "The idea that this form of gas extraction can have the same impact here in the UK as it has had on gas prices in the United States is considered wishful thinking by most experts."
The decision comes as government adviser, the Committee on Climate Change, warned in a report that shale gas would have little impact on the level of energy bills in the UK.The decision comes as government adviser, the Committee on Climate Change, warned in a report that shale gas would have little impact on the level of energy bills in the UK.
The committee said global gas prices were so volatile that the best way of ensuring household bills stayed down was by investing in nuclear and renewable sources.The committee said global gas prices were so volatile that the best way of ensuring household bills stayed down was by investing in nuclear and renewable sources.
It said investment in low-carbon power was "insurance" against the potential high costs of gas in the future.It said investment in low-carbon power was "insurance" against the potential high costs of gas in the future.
It said its analysis showed that the average household electricity bill could rise by £600 a year by 2050 if the UK relied on "unabated" gas power that had no technology to cut its emissions, as a result of rising gas prices and the cost of paying for carbon pollution.It said its analysis showed that the average household electricity bill could rise by £600 a year by 2050 if the UK relied on "unabated" gas power that had no technology to cut its emissions, as a result of rising gas prices and the cost of paying for carbon pollution.
Committee chairman Lord Deben said: "Our analysis confirms the benefits of adopting a strategy which invests in low carbon technologies.Committee chairman Lord Deben said: "Our analysis confirms the benefits of adopting a strategy which invests in low carbon technologies.
"This provides a portfolio of energy sources as insurance against the risks of high gas prices. It lessens the impact on household bills in the long term and enhances the competitiveness of UK industry.""This provides a portfolio of energy sources as insurance against the risks of high gas prices. It lessens the impact on household bills in the long term and enhances the competitiveness of UK industry."
But speaking to BBC Radio 4's Today programme, Professor Alastair Fraser - chair of petroleum geoscience at Imperial College London - said that while fracking would not hugely reduce gas prices, it could increase the UK's control over its own market, which was "important".
He said: "It's not going to fundamentally change Britain's gas market in terms of export activities, but it will contribute to the amount of gas that comes into our homes."
"It might not lower the price, but it will stop us relying on imported gas from places like Norway and Russia. And we'll have more control over the price in that case."