Shale Gas Production

Lord Mackinlay of Richborough Excerpts

Tuesday 15th March 2022 Commons Chamber

[Greg Hands]

The hon. Member raises a very good point and a strong point. In terms of what defines something as being cheaper, there are different ways to cut that. It will depend on what the prevailing prices are of alternative sources of energy. He will know that, for example, gas prices are more than 15 times their five-year historic high, so much depends on what the other prices are out there. But as I said earlier, a strategy will be launched by the Government before the end of the month, which will address a number of the different questions in terms of where our energy supply will come from in future years.

[Craig Mackinlay (South Thanet) (Con)]

Diverse organisations such as the Climate Change Committee and the Net Zero Scrutiny Group, which I chair, agree on one thing: gas will be part of our energy mix to 2050 and beyond. That makes domestic supply a very sensible endeavour. I just put the benefits to the Minister: 75,000 potential jobs; tens of billions of investment; billions in terms of tax revenues; massive savings of CO₂ compared with LNG inputs, which are truly horrific on CO₂, given that they come in on a diesel ship; and the balance of payments positivity. Is there anything in that list that my right hon. Friend disagrees with? Finally, I implore him to send a note of thanks to the US Government who took the dash to shale gas extraction some time ago and it is on the back of that that they have mitigated a lot of our energy failure.

[Greg Hands]

I thank my hon. Friend for his question and for his continued interest. I am always happy to meet with his group to discuss these issues. He is absolutely right: domestic supply is very important. This is not the time to be wanting to increase imports of foreign LNG. That is one reason why we want to see a robust UK continental shelf producing UK natural gas. The point he makes about investment, jobs, tax revenues and so on would be considered in the round, but I point out the earlier point about seeing the scientific evidence first and the local community support as well.