Campaign

Does fracking bring down gas prices?

Who says it will?

Michael Fallon, Minister for Energy and Business
“The potential prize is huge: cheaper bills for everybody”  (31/7/13)  http://www.telegraph.co.uk/earth/energy/10213985/The-potential-prize-from-fracking-is-huge.html

Prime Minister, David Cameron
Fracking has “real potential to drive energy bills down”. (11/8/13)  http://www.telegraph.co.uk/news/politics/10236664/We-cannot-afford-to-miss-out-on-shale-gas.html

Chancellor of the Exchequer, George Osborne
“This is a major new energy source that can reduce energy bills for families, for businesses” (19/7/13)  http://www.telegraph.co.uk/earth/greenpolitics/taxandtheenvironment/10190877/George-Osborne-fracking-offers-real-chance-of-cheaper-energy.html

Derek Lickorish, chairman of the government’s Fuel Poverty Advisory Group, told The Times “Extracting natural gas from shale has the potential to reduce the cost of gas for heating and generating electricity.” 21/8/13 http://www.thetimes.co.uk/tto/news/uk/article3848589.ece

Cuadrilla officially told residents at a community drop-in session  on the proposed Clifton well on July 23, 2013:  “As an untapped energy resource, natural gas from shale has the potential to boost the UK’s gas production, reduce the UK’s dependency on expensive foreign energy sources and to lower gas prices.” Exhibition panels  Exhibition panels (see page 3) at http://www.cuadrillaresources.com/wp-content/uploads/2013/07/Boards-july-13-s6-FW.pdf

And who says it won’t?

Cuadrilla through Mark Linder, a public relations executive at Bell Pottinger in conversation with Greenpeace
“We’ve done an analysis and it’s a very small…, at the most it’s a very small percentage…basically insignificant,”  http://www.independent.co.uk/environment/green-living/cuadrilla-pr-man-admits-george-osbornes-shale-gas-revolution-wont-cut-energy-bills-8656246.html

The Energy Contract Company
“The Energy Contract Company sees significant potential for the UK to economically develop its shale gas reserves; however such reserves will not in the near future offer a cheap source of natural gas to the UK market. A repeat of the success experienced in the US over the last few years is therefore highly unlikely.”  http://www.energy-contract.com/assets/uploads/files/UK_Shale_Gas_Insight.pdf

Carbon connect report Future Electricity Series
“It is important to note that low gas prices in the US are not due to the cheap cost of shale gas, but rather a glut in supply that was constrained by limited export opportunities. The costs of unconventional gas extraction are higher than those of conventional resources, due to the greater volume of wells and drilling required.”  http://www.policyconnect.org.uk/cc/sites/site_cc/files/report/347/fieldreportdownload/carbonconnect-powerfromfossilfuelsreport.pdf

Energy and Climate Change Committee
The 2013 ECC Committee enquiry found that it was “too early to say whether domestic production of shale gas could result in cheaper gas prices in the UK”, and that it would be wrong to assume that prices would come down as a result of domestic or foreign shale gas.
House of Commons Energy and Climate Change Committee, The Impact of Shale Gas on Energy Markets, April 2013

Institute of Mechanical Engineers
“Future exploitation of the UK resource [of shale gas] is anticipated to have only a small impact on gas prices”  http://www.imeche.org/docs/default-source/public-affairs/IMechE_Shale_Gas_PS_Final_160912.pdf?sfvrsn=0

Deutsche Bank
“We do not expect the impact of shale-gas production on EU gas prices to be anywhere near as great as has been the case with US shale-gas production on Henry Hub prices.”  http://www.shalegas-europe.eu/en/docs/Deutsche_Bank_Report.pdf

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