This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-20707574

The article has changed 10 times. There is an RSS feed of changes available.

Version 2 Version 3
Fracking: Shale gas decision by government awaited Fracking: Ministers approve shale gas extraction
(35 minutes 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. By Roger Harrabin Environment analyst
Cuadrilla had to stop test-drilling in 2011 after fracking caused two minor earthquakes near Blackpool. The government has given the go-ahead for a firm to resume the controversial technique known as fracking to exploit gas in Lancashire.
The decision due later will be watched closely by the industry and opponents. Conditions have been imposed to minimise the risk of seismic activity.
Meanwhile, government advisers say a dependence on gas could force household bills much higher than relying on renewable energy and nuclear power. Fracking involves creating little explosions underground, then injecting water and chemicals to release gas trapped in cavities in shale rocks.
Strict conditions The firm, Cuadrilla, was stopped from fracking after two small earthquakes.
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, exploitation of shale gas boom has sent energy prices tumbling, and the Prime Minister has expressed hopes that the UK can enjoy a similar boom.
In the US the technique has led to lower energy prices but has also been blamed for polluting water supplies. But government advisers warn today that shale gas may be unlikely to bring down energy prices much in Britain.
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. In fact, the Committee on Climate Change warns that relying heavily on gas for future electricity supplies would leave households vulnerable to higher bills in the long run as the price of gas on the international market is volatile.
The government has already indicated its backing for such moves by proposing tax relief for shale gas and producing a gas generation strategy. The UK won't benefit from substantially lower prices unless the rest of Europe decides to back shale gas too, as Europe has a gas grid that allows gas to be traded to the highest bidder.
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 CCC has examined the potential impact on bills of different energy systems and predicts that subsidies to renewables and nuclear would put about £100 on household bills by 2020, but that by 2050 a gas-based electricity system might cost people as much as £600 extra.
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. Today's fracking decision has created political excitement as the Prime Minister the Chancellor and some business leaders have spoken enthusiastically about shale gas.
Cuadrilla has four exploration drilling sites in Lancashire - three on the Fylde at Westby, Singleton and Weeton, and one at Banks in west Lancashire. Environmentalists are more cautious following incidents in the US in which fracking has been associated with pollution of water through the chemicals involved in the process, as well as leakage of methane - a powerful greenhouse gas as well as a local air pollutant. They say fracking will generate much more opposition in the UK than it has in the USA as it involves turning green fields into industrial sites.
Environmental campaigners are strongly against the move. They also worry that an abundance of domestic gas will tempt politicians to abandon targets for cutting greenhouse gases, which are rising inexorably globally to the alarm of scientists.
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. A poll suggested that people would prefer to have wind turbines on the horizon than gas rigs.
"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." Steve Radley, Director of Policy at EEF, the manufacturers' organisation, said the UK should do whatever possible to keep energy costs down: "This is a major threat that needs to be addressed now as we cannot continue to load industry with costs which are in excess of our competitors.," he said.
Potential costs Caroline Flint MP, Labour's Shadow Energy Secretary, said: "Labour has always said that fracking should only go ahead if it is shown to be safe and environmentally sound. If the Government believes that this is the case then we will look carefully at their proposals.
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." "But 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 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 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.
"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."
What is your reaction? Do you live in the areas affected? Send us your comments using the form below.What is your reaction? Do you live in the areas affected? Send us your comments using the form below.