The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
I thank the hon. Member for Thornbury and Yate (Claire Young) for bringing this debate to the House this afternoon, and I thank the Backbench Business Committee for granting it.
After the hottest summer on record, I would argue that the need for climate action is more acute than ever. We have seen really visibly this summer why it is so necessary, so I have to start by saying that what we have heard from the hon. Member for Boston and Skegness (Richard Tice) astounds me. He asked the question: who would forgive us? The question I would put back to him is this: who will forgive us if we, as he has done, deny the climate science? Who will forgive us if we fail to plan for a transition that is happening now—not in years to come—and on which work and jobs rely? And who will forgive us if we pass on to our children, grandchildren and the next generation a world that is worse than the one we inherited? To me, that is the question that sits at the heart of this debate. There may be parts of the debate where we disagree—even those of us who agree on the climate science—but on the basics of climate science, there is much that we can agree on.
It is important that the House, industry, communities and the wider public have clarity on the Government’s position on this issue, the evidence base behind it and the safeguards that apply, so let me remind the House of our position. It comes in three parts: first, a clear commitment to ban fracking for shale gas; secondly, the distinction between that activity and low-volume hydraulic fracturing techniques used in conventional oil and gas operations, and, as the hon. Lady acknowledged in her speech, other industries such as geothermal; and thirdly, the broader reality that the benefits of getting off the fossil fuel rollercoaster significantly outweigh the cost, with clean energy providing cheaper power, travel and homes for our country.
The Government have been clear in our commitment to ban hydraulic fracturing for shale gas, commonly known as fracking. There is currently no fracking for shale gas anywhere in the United Kingdom. Many Members across the House, including my hon. Friend the Member for Scarborough and Whitby (Alison Hume), asked about the energy independence Bill. The Bill was announced in the King’s Speech and will meet our commitment to not issue new licences to explore new fields—onshore and offshore—including those that could be used for fracking for shale gas. That will deliver on our commitment in law to ban fracking.
The effective moratorium on fracking for shale gas in England remains in place for existing licences because of concerns about the prediction and management of induced seismicity. Those concerns are not minor and not theoretical. In all three instances of fracking for shale gas in the UK, there was evidence of induced seismicity, including earthquakes strong enough to be felt by surrounding communities. Where communities have concerns about safety, environmental protection and local impacts, the Government have a responsibility to proceed cautiously and transparently.
Fracking for shale gas is used where gas is located within very small pores of shale rock and it cannot be extracted without repeatedly fracturing the rock. It typically requires injecting high volumes of fluid and propane at high pressure and at multiple points in a horizontal well to create high numbers of fractures extending hundreds of metres into the shale.
Martin Wrigley
Does the Minister agree that not only did the hon. Member for Boston and Skegness (Richard Tice) exaggerate the amount of available gas that might be in the UK—less than 10% of such gas is usually recovered, and that normally trails off after a year—but that such gas is not actually pulled out of the ground by nodding donkeys? Typically, a structure called a Christmas tree is used, not the nodding donkeys described by the hon. Gentleman.
Martin McCluskey
I agree with much of what the hon. Gentleman said. I would also say that we are not Pennsylvania or Texas; we are the United Kingdom, and we will operate on the basis of our national interest, energy security and national security.
The process of high-impact fracking can lead to seismic activity that can be felt on the surface. It differs considerably from the proppant squeeze used in conventional gas extraction and in geothermal, which uses smaller amounts of fluid to improve the production rate of gas in non-shale rock types. The Government’s commitment is directed at hydraulic fracturing for shale gas, where the combination of geology, the scale of the fracturing network, the fluid volume and the operational design has raised specific concerns.
I will say a little more about some of the other issues raised by hon. Members. We recognise that there are some concerns about low-volume hydraulic fracturing techniques, such as proppant or acid squeezes used in conventional, non-shale oil and gas operations. I am at pains to say that this is not the same as hydraulic fracturing for shale gas extraction, and it is not associated with the same safety issues.
Alison Hume
Does the Minister accept that using proppant squeeze is a loophole, because the industry has started using it to get round the moratorium, and therefore it needs to be included in any ban?
Martin McCluskey
I thank my hon. Friend for her question. In her introduction to the debate, the hon. Member for Thornbury and Yate raised the point about geothermal. The specific issues relating to high-intensity hydraulic fracturing that we have seen have been in shale, not in the types of fracturing used in conventional oil and gas, which are also used in geothermal. There has been some division across the House this afternoon: there was a suggestion from the Liberal Democrat Benches that we use a definition linked only to oil and gas, thus keeping geothermal out of it; there were suggestions from elsewhere that a full ban may also impact on uses such as geothermal. That points to why we have to be careful and specific about what it is we are trying to achieve.
Low-volume hydraulic fracturing has been happening in the UK for decades. It has been used not just in respect of oil and gas but in the water industry and geothermal. In that time, there has been no clear evidence that it induces seismicity that can be felt on the surface. Low-volume hydraulic fracturing operations are routinely used in conventional oil and gas operations. They target different types of rocks, create fractures close to the wellbore and are typically short, single-stage operations, as opposed to the continuous fracturing characteristic of shale gas fracking.
In practical terms, those operations are limited in scale and purpose. They are designed to improve flow from an existing conventional reservoir, not to fracture large areas of shale rock. They do not involve the same high-volume, multi-stage process associated with shale gas fracking, and they have not produced the same evidence of induced seismicity. Furthermore, all such activities are subject to a robust regulatory regime.
The hon. Member for Bath (Wera Hobhouse) and my hon. Friend the Member for Bolton West (Phil Brickell) spoke about safety. Operators must obtain planning permission, environmental permits and health and safety approvals before proceeding, covering issues such as groundwater protection, management of emissions, handling of fluids and waste, and monitoring requirements. Where health and safety approvals are required, operators must meet the standards expected for well integrity and operational safety. Planning processes also provide a route for local impacts to be considered before activities proceed. We recognise the strong interest that Members expressed in the Burniston application, for which the planning authority has now refused permission.
Let me be absolutely clear: there is no loophole and no hidden route by which shale gas fracking can resume. The evidence-based policy position is clear, the effective moratorium remains in place, and the Government will not issue new onshore licences in England, including those that could be used for fracking for shale gas. That is the reassurance that communities across the country are entitled to hear.
Finally, I will turn to the wider arguments sometimes made about energy security and domestic production. Some, like the hon. Member for Boston and Skegness, who spent his speech denying the climate science, suggest that fracking for shale gas would strengthen our energy independence or reduce consumer bills. However, oil and gas are traded on the international markets, as has been mentioned by a number of hon. Members, and increasing domestic production would not shield consumers from global price volatility.
Richard Tice
I just need to clarify for the hon. Member for Newton Abbot (Martin Wrigley) that when I referred to nodding donkeys, I specifically said oil wells. I hope that helps him.
With regard to the price of gas, can the Minister explain why the wholesale price of gas in the United States is 80% cheaper than the wholesale price in the United Kingdom? That completely undermines what he has just said. The Minister has inadvertently misled the House, Madam Deputy Speaker.
Martin McCluskey
Absolutely not. As I said a moment ago, we are not the United States; we are not Pennsylvania or Texas. It is a different energy market. There is nothing to suggest that the extraction of shale gas in this country would reduce the cost of energy, just as there is no evidence to suggest that extracting more oil and gas from the North sea would reduce the cost of energy, if that is the point the hon. Gentleman was making.
Douglas Lumsden
Does the Minister agree that if we produce our own oil and gas, that gives the Exchequer more money? If the Government want then to use that to take money off people’s bills, that is up to them.
Martin McCluskey
That is a different argument to the one the hon. Member for Boston and Skegness was making. What is clear is that it will not directly reduce the cost of energy in this country.
Recent years have shown that the answer is not to double down on fossil fuel production, but to reduce our dependence on those markets over time through clean, home-grown energy, as my hon. Friend the Member for Alloa and Grangemouth (Brian Leishman) set out in his speech. That will ensure that our oil and gas workers and supply chains benefit from the clean energy transition and that we support prosperity, jobs, economic growth, communities and energy security. This Government’s approach is both clear and pragmatic: ending new licences and introducing transitional energy certificates, maintaining the effective moratorium and accelerating the transition to clean, home-grown energy that improves resilience, supports jobs, reduces emissions and gives consumers greater protections from global price shocks.
The House should be in no doubt. Our position is evidence based, and it is clear: we will not issue new onshore licences in England, and we will maintain the effective moratorium on fracking for shale gas, because the concerns that led to it have not been resolved. Together, these measures will ensure that fracking for shale gas is not taking place in England. We will continue to ensure that conventional oil and gas activities are properly distinguished, properly regulated and properly scrutinised. That is the responsible course of action for communities, for consumers and for our climate commitments, and for the country’s long-term energy security.