Shale Gas Production

Debate between Greg Hands and Lee Anderson

Tuesday 15th March 2022 Commons Chamber

[Lee Anderson (Ashfield) (Con)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy to confirm what the Government’s current stance is on shale gas production in the UK.

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

In response to Putin’s barbaric acts in Ukraine and against the Ukrainian people, we need to keep all our energy options open. We have always been clear that the development of shale gas in the UK must be safe and cause minimal disruption and damage to those living and working in nearby sites. This is not a new position. Shale gas and new approaches could be part of our future energy mix, but we need to be led by the science and have the support of local communities. That was in our general manifesto, on which my hon. Friend and I stood at the last election.

The pause on fracking implemented in November 2019 on the basis of the difficulty in predicting and managing seismic activity caused by fracking remains in place, and we will continue to be led by the science in our approach. We are clear that shale gas is not the solution to near-term issues. It would take years of exploration and development before commercial quantities of shale gas could be produced. Additionally, fracking relies on a continued series of new wells, each of which produces gas for a relatively short time. Even if the pause were lifted, there are unlikely to be sufficient quantities of gas available to address the high prices affecting all of western Europe and it would certainly have no effect on prices in the near term.

As the Business Secretary has said, we will continue to back our vital North sea oil and gas sector to maximise domestic production while transitioning to cheaper, cleaner home-grown power at the same time. We will shortly set out an energy supply strategy that will supercharge our renewable energy and nuclear capacity, as well as supporting our North sea oil and gas industry.

[Lee Anderson]

Last Wednesday, the Secretary of State for Business told this House that

“it did not necessarily make any sense to concrete over the wells”.—[Official Report, 9 March 2022; Vol. 710, c. 354.]

Given that the wells at the Preston New Road site in Lancashire are the only two viable wells in the whole of the UK, pouring concrete down them would be the end of the shale gas industry in the UK. That would be an inappropriate step at this time. We are in the midst of an international crisis, and as the Prime Minister has said, the west has become addicted to Russian gas. We must rectify that immediately; it is a national emergency.

The House was assured last week that the Department for Business, Energy and Industrial Strategy and No. 10 agreed that those wells should not be filled. However, Government rhetoric is not being matched by action on the ground, and Cuadrilla, the company that owns the wells, has spent the last six days trying to get hold of anyone in the Government or the Oil and Gas Authority to get confirmation that it no longer needs to carry out the abandonment process, but it is being ignored. Officials are dragging their heels and, with just days to go, Cuadrilla is legally obliged to plug the wells by 30 June. The OGA keeps confirming that. The Business Secretary says that Cuadrilla should “formally request an extension”, but that is nothing but jobsworth mentality. It is just kicking the can down the road, and we will be back here having the same argument in a few weeks’ time.

Can I ask the Business Secretary why he does not just give practical effect to the words he uttered last week and instruct the OGA to reverse the decision to concrete over the wells? That is what Cuadrilla is waiting for. Either the Government think those wells should be filled or they do not. To concrete or not concrete, that is the question; to frack or not to frack. If we do not want to see concrete being poured down our only viable shale gas wells in the middle of an energy crisis, the Business Secretary needs to act quickly.

As western civilisation grapples with an energy crisis, I am at pains to understand why the Government are risking jeopardising Britain’s long-term energy security over some tiny procedural nonsense. The course of action is clear to me—[Interruption.] I hear some chuntering in the House today, but I challenge any MP in this House to come to my constituency and speak to some real people who are struggling with their gas bills. Not one person in this place has to worry about paying their gas bill, so those Members should hang their heads in shame.

[Greg Hands]

I thank my hon. Friend for his engagement, and I know he has a long-standing interest in energy on a number of fronts. I commend him for his continuing interest.

Nothing has changed in Government policy relating to fracking and shale gas. On the international crisis, my hon. Friend says the west is addicted to Russian hydrocarbons, but I would say that the UK is not. Last year we imported 4%, but typically we get less than 3% of our gas from Russia. The figures for oil are higher, but they are nothing like the eyewatering percentages we see among our European friends and partners.

On the holes in Preston New Road, Lancashire, the Oil and Gas Authority—the independent regulator—proactively approached Cuadrilla as recently as this week to ask whether it will apply for an extension. However, Cuadrilla has not made a straightforward application to do so. As with any licensee, Cuadrilla can apply for a straightforward extension from the Oil and Gas Authority if it wants to extend the deadline.

My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy and I met the Oil and Gas Authority today, and it is ready to consider Cuadrilla’s letter and potential application. The Government hope the regulator would consider it favourably.