Carbon Brief: DECC’s conflicting gas price projections

Two reports released by the Department for Energy and Climate Change (DECC) disagree on future gas prices. Could gas prices really fall by a quarter  as a result of shale gas extraction, or will they go up?  

Part of an analysis from consultancy Navigant, commissioned by DECC, shows gas prices could go down if there is a "significant expansion" of shale gas in Europe over the next couple of decades. The Telegraph picked up the scenario in a piece yesterday.

But how likely is it that shale gas will bring down gas prices?

In Navigant's other scenarios, gas prices stay the same or go up. What's more, DECC's new fossil fuel price projections  - also released yesterday - predict gas prices will be higher than in Navigant's report.  MORE