We Shale Overcome…

Onshore oil and gas production has happened in the UK for decades, with very little media interest apart from a brief period in the 1990s when a Canadian company started to explore for oil underneath Windsor Castle and Windsor Great Park. 

So what has happened to turn what has been a very low profile part of the UK energy industry into a cause célèbre, uniting Middle England villagers with groups of committed environmental and anti-capitalist protestors?

The answer fracking, or hydraulic fracturing of gas in shale beds, which, depending on what side of the argument you are on, is either a revolution in the UK’s energy sector which could see gas prices tumbling in the UK, reenergising important sectors such as manufacturing; or an unsafe, earthquake inducing way to pollute water supplies whilst undermining UK’s efforts to reduce carbon emissions by undermining the market in renewables.

These fears have been built upon by anti-fracking campaigners who have made claims about the environmental effects of shale gas exploitation in the US, most noticeably through the film Gasland which purports to show how fracking has led to the pollution of water courses and leaching of methane into water supplies, dramatically illustrated by flames coming out of domestic water taps. 

The Government have been keen to support the development of the shale gas industry, recently announcing new tax breaks to encourage development and introducing planning changes to make it more difficult for local authorities to reject applications for new wells, but despite this strong Government support the industry needs to face up to the growing public and political concerns about the effects of fracking.

The Energy Minister Michael Fallon, is a strong supporter of the sector, but his recent musings about ‘shaking rectory walls’ and ‘flaring at the end of driveways’ underlines the challenges that shale gas developers will face in overcoming localised opposition to new drilling sites.

As the former Minister Nick Herbert - whose constituency in Sussex includes a number of possible fracking sites - has argued, people face a fear of the unknown.  There has to be a proper debate about the balance between the possible economic benefits from the exploitation of shale gas and the value of sensitive landscapes. The fear that development could be forced upon them is likely to increase local opposition.

Whilst the Government is increasingly enthusiastic about the potential of shale, there is currently no cross party support, increasing uncertainty for the sector.The Labour party’s current position is to question the potential of the sector in the UK, but also raise concerns about what a new dash for gas could mean for the UK’s carbon reduction commitments and the growth of the renewables sector. 

Greater efforts are therefore needed from industry and Government to demonstrate the potential for shale, reassure the public about how the UK regulatory system would prevent the criticisms which have been levelled against the industry in the US and to underline how lower gas prices could reduce greenhouse gas emissions by displacing coal fired generation as well as boosting economic growth and employment.

Community level incentives also have an important part to play too.  Whilst the hard core of eco-protesters who have hijacked local protests will not be persuaded, ideas such as the Government’s plans to allow local communities to gain from development through a one per cent share of revenue from production wells could make the idea of local oil and gas exploration more attractive to local communities.

We also need a nuanced debate about the possible effects of the shale industry on the UK which avoids the overblow rhetoric on both sides of the argument.   The economic potential of shale needs to be balanced against public concern about the impact of development.  The role of shale needs to be seen in the context of a holistic energy policy which accepts the necessity for investment in a mix of technologies including renewables as well as new sources of fossil fuels. 

An alliance between middle class NIMBYs and hardcore anti-capitalist and environmental protestors will be a huge challenge for the industry to overcome.  Transparency will be the most effective way to reassure the public about the impact of shale gas exploitation in their area.    

Whilst there is tremendous excitement about the potential for shale, a calmer debate about the future of the industry is needed to shift the current polarised debate and to allow a better understanding from the public about the reality of fracking.   

The hope for the industry must be that once the first shale gas wells are producing and the true extent of the environmental effects of fracking is understood the sector will once again return to the levels of acceptance that the onshore oil and gas sector once enjoyed.  

This article by Andrew Smith first appeared on Connect Communications. Republished with permission.

Andrew Smith is the Senior Policy Adviser at Connect Communications a leading UK public affairs agency.