Callum McCaig
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Callum McCaig (Aberdeen South) (SNP)
I thank the hon. Member for Thirsk and Malton (Kevin Hollinrake) and congratulate him on obtaining the debate, and on his impeccable timing, given the news on the decision in Lancashire. Time is clearly of the essence, so I shall crack on.
Five themes have been brought out in the debate, and alignment between them is needed if fracking is to be a viable part of the energy mix: safety, public support, climate change, how that fits in with the total energy mix, and economic viability. Dealing with this is to be devolved to Scotland. Scottish Ministers have suggested a moratorium while concerns are explored. That is welcome and it will go a long way towards ensuring that discussions on the food and drink and tourism industries, which my hon. Friend the Member for Falkirk (John Mc Nally) mentioned, are not put in jeopardy by fracking.
There is a question about whether new licences will be issued while the process is going on—it has been suggested that they will not—and there is also a question about licences that have been granted, and how they will be considered when things are devolved. I think there are issues about the economics. If we are to have a truly safe regime it needs to be gold-plated, but that is likely to be more expensive, and I understand that it will be more expensive in the UK than it would be in the United States. Doing things more safely than they are done in the United States, from a more expensive cost base at the start, with gas prices considerably lower than those of a number of years ago, brings the economics into question. I take the point that if shale gas extraction is not economic it will not happen, but we need to consider that when time is spent on exploring.
Perhaps the biggest issue is not economic viability or whether shale gas will change our dependence on fossil fuels, but whether it would be the best use of this country’s resources, from the carbon dioxide point of view, and whether we are going to meet our objectives on reducing carbon emissions. Shale gas will produce more.
Mr George Howarth (in the Chair)
Order. Time will not be added on for this intervention.
Antoinette Sandbach
Does the hon. Gentleman accept that burning coal is more deleterious than shale gas, which has a lower carbon footprint?
Callum McCaig
I certainly do, but it has been pointed out that other technologies could be better. In the context of carbon, when we extract more resources we need to make sure that we get the best ones and the biggest bang for our buck. As I represent Aberdeen, and given the continuing potential of the North sea, I wonder what effect investigating new onshore gas will have on the well established offshore industry, which makes an immense contribution. That needs to be considered along with the entire energy mix that we are considering.