Monday, December 10, 2012
Ignore the doom merchants, Britain should get fracking
Regulations? From the Euro-parliament? And these people wonder why we in Britain are increasingly determined to have a referendum on our membership of the EU. I am sure that the SPD politician means well, but just what in the name of hell has it got to do with him? Before he draws up any regulations for the British fracking market, he might care to look at what has been going on in America in the past four years, where the discovery of large quantities of shale gas is turning into one of the most significant political events since the end of the Cold War.
In 2008 the cost of natural gas in the US was $8 a unit. It is now $3 a unit. In China it is still up at $12 a unit – and the result is that the US is now competitive in industries such as fertilisers and chemicals that American politicians had long since assumed were lost to low-cost economies of the East. As a result of the use of gas, the Americans have cut their CO2 emissions to levels not seen since the Nineties, in spite of a growing population.
Indeed, the Americans have now actually met their obligations under the Kyoto protocol on climate change – and they never even signed up for it. The shale gas industry is a huge employer, and has so far contributed $50 billion in tax. As for the anxieties about water poisoning or a murrain on the cattle, there have been 125,000 fracks in the US, and not a single complaint to the Environmental Protection Agency.
It is no wonder that some of the more heroic spirits in the Coalition Government are saying that we should get our act together, and make use of what nature has bestowed on Lancashire and elsewhere. As soon as he became Environment Secretary, Owen Paterson announced that he was going to make life easy for potential frackers, with a one-stop permit system. He has the support of George Osborne, who hailed the potential of fracking in the Autumn Statement.
Alas, we are in a Coalition, and the Liberals run the Department of Energy and Climate Change. They have announced a moratorium on fracking, claiming that there have been earthquakes in the Blackpool area – even though there are tiny quakes every day. In what they thought was a cunning move, the Lib Dems also leaked the location of two big reserves of shale gas – in Tatton and Shropshire North. Much to his credit, Owen Paterson immediately announced that he was all in favour of fracking his constituency if it would deliver jobs and growth, and he is dead right. The shale gas discovery is hateful to the Libs and the Greens, because it destroys their narrative about the ever rising cost of hydrocarbons. It is glorious news for humanity. It doesn’t need the subsidy of wind power. I don’t know whether it will work in Britain, but we should get fracking right away.