Shale Gas

Ian Lavery Excerpts

Thursday 3rd November 2011 Westminster Hall

[Ian Lavery (Wansbeck) (Lab)]

As a member of the Select Committee I have been involved in the report and all the stages leading up to it. I am sure that my colleagues agree that the investigation into shale gas has been enlightening.

Shale gas has been declared to be an energy revolution and a game changer in the US, and heralded as a game changer for policy and for energy security. The real question here is whether it can be a game changer in the UK. It is an unconventional gas, and is classified as a fossil fuel. The three main types of unconventional gases are shale gas, tight gas and coal bed methane gas. The reserves of shale gas are known, as has been explained this afternoon, as plays, not fields. They cover a larger geographical area than a field and, because of the way in which the gas is exploited, need many more wells to be drilled than conventional gas, which will present a problem for communities in itself.

Cuadrilla has been the subject of everyone’s discussions this afternoon. It describes itself as an English independent company, and it has completed phase 1 of its exploration at Preese Hall, five miles east of Blackpool. Phase 2 of the exploration commenced in 2011, and on its completion Cuadrilla plans to equip one of its other four approved sites in Lancashire. As has been explained by the hon. Member for South Suffolk (Mr Yeo), the Chair of the Select Committee, the results were divulged today or possibly yesterday, and unfortunately I have not seen them. However, it is alarming that the hydraulic fracking process was paused because of seismic events in Poulton-le-Fylde last year.

We must understand, as politicians on both sides of the House, that people have the right to be frightened of seismic events in their area. Someone may say, “Don’t worry; it’s only a seismic event,” but when people hear things like that they go to the council or their representatives, or they go on the internet, and eventually they go to their MPs’ surgeries wanting answers. We must understand that. What the hon. Member for Southport (John Pugh) has said about fear and greed is right, and it is probably what the issue is all about.

The seventh special report of Session 2010-12 outlines the work of the Select Committee on Energy and Climate Change and the Government’s response. The whole issue of shale gas needs much more detail and clarification on a range of fronts: there are the cost implications; there is the impact of exploration and production on the environment, which is an essential issue; there are the advantages and disadvantages of shale gas production and exploration; there is the carbon footprint; and there are the possible hazards. Having sat in Committee while witness after witness gave very good statements, we heard wide and varied views before we took the view outlined in the report.

The cost of shale gas exploration and production, and the cost to the consumer, are at present relatively unknown. My hon. Friend the Member for Southampton, Test (Dr Whitehead), has explained his view of different costing elements and the potential future costs.

Of the environmental issues, fracking, which leads to seismic events, is the one that people are talking about, and it is one of the most important. In a nutshell, fractures or fissures are created in underground formations to allow natural gas to flow. Water, sand and other chemicals are pumped under high pressure into the shale formation to create such fractures and fissures, and the sand then props them open to allow the gas to flow to the surface and be collected. Interestingly, giving evidence to the Committee, Professor Selley of Imperial college London observed—I would be the first to accept that this is an example of the fear factor, but it was put to the Committee—that hydraulic fracking had been blamed in the United States for the contamination of shallow water aquifers, microseisms, which are faint earth tremors, and flocks of dead blackbirds falling from the sky.

[Christopher Pincher (Tamworth) (Con)]

The hon. Gentleman has discussed the pollution dangers from fracking. Does he accept that because fracking happens thousands of metres underground, whereas aquifers are probably only a couple of hundred metres below ground, with thick layers of rock between the two, the likely reason for pollution is not seepage of dirty water upwards, but failures in the well head or the bore itself?

--- Later in debate ---

[Ian Lavery]

That was the view of many experts, as well. I am merely highlighting points raised by experts who appeared in Committee. I understand what the hon. Gentleman has said, and it was the view of probably the majority of those experts, but it is important to look at other aspects of the matter. I have read about blackbirds falling from the sky three or four times, and I think it is the fear factor. When that point was raised in America, the response was that blackbirds were falling from the sky long before fracking. I probably agree with that response, but, again, the point was put before the Committee.

The report makes a number of recommendations on the environmental issues. There are still major concerns about the environmental impact of shale gas exploration and production.

We must listen to the general public because we need them onside if we are to succeed in making shale gas a major contributor to the energy requirements of the UK for many years, as people believe can be the case. There is no doubt that we must take the general public with us. If they are not with us, it will be terribly difficult to do anything.

[Eric Ollerenshaw]

My hon. Friend the Member for Southport (John Pugh) has referred to “fear and greed”, but is there not another concept that relates to what the hon. Gentleman has just said, which is, “What is in it for us?” Many of the people in my local area are too used now to wind farms being built on hills, which are owned by financiers miles away and the local people see no benefit from them, and wind farms being built out at sea, which are driving the fishing fleets away and, again, they are yet to see any benefit themselves. Local people’s fear about shale gas—or their view about, “What’s in it for us?”—is that suddenly these companies will come along, that they will extract the shale gas and that there will be very few job opportunities for the local area. Potentially, millions will be made out of shale gas production, but not for the local area.

[Ian Lavery]

I think that the hon. Gentleman is right, which is why it is imperative that we try, at all stages, to take the general public in the areas affected along with us.

I think that it was the hon. Member for Southport who said that, whatever new types of energy we come up with, people will automatically oppose them. It does not help when certain people say that they are in love with these new wind turbines and that they are beautiful to watch. Wind turbines are probably beautiful to watch from somebody’s back garden but perhaps not from other people’s back gardens.

The hon. Member for Lancaster and Fleetwood (Eric Ollerenshaw) is right that these industries are not labour-intensive. Local people think that there is employment coming to the area with the new energy industries, but it does not really happen, and it has not happened so far. Generally, these new technologies do not create much new employment, but people can see them and wonder why they are being developed. I agree with that point.

The fracking process has been the focus of much consternation. Could the gas from fracking make its way into the general water supply? Could the fracking fluids leak into the shallow water aquifers, an issue which we have already discussed? What type of fluids would be used? The Tyndall Centre has said that, of the 260 substances used in fracking, 58 could be carcinogenic or mutagenic, while other organisations have suggested that all the substances used in fracking are also used in everyday household goods. Those are the varied views that the Committee heard from industry experts, some of whom said that the fluids are carcinogenic, and some of whom said that they are just fluids used in ordinary household goods. We must get much more detail on that subject. Also, could fracking lead to the groundwater contamination that has been experienced elsewhere?

The Energy and Climate Change Committee report tackles all those issues, as has been outlined already this afternoon. However, the World Wide Fund for Nature has clearly stated that shale gas is a fossil fuel and that

“world fossil fuels should stay in the ground and shale gas is likely to increase the net carbon emissions.”

The Campaign to Protect Rural England has drawn on evidence from Canada, which shows that the majority of wells in Quebec leak large doses of methane.

Another issue is the carbon footprint of shale gas production, which is very much unknown, although there are some very interesting and varied views about it. The British Geological Survey has stated:

“The overall greenhouse footprint of shale gas, including direct and indirect emissions of both CO₂ and methane is not yet fully understood.”

Representatives from the Select Committee visited Texas in the United States at the end of last year, or possibly at the beginning of this year. One of the first presentations that they saw began by noting that, over a 20-year period, the global warming potential, or GWP, of methane is 72 times that of carbon dioxide, while over a 100-year period the GWP of methane is 21 to 25 times that of CO₂. That is because methane and CO₂ have different lifetimes in the atmosphere. If the short-term GWP measure of methane, which is 72 times that of CO₂, is used, coal emissions would come to 1,154 kg of CO₂ per megawatt-hour, while gas emissions would come to 781 kg of CO₂ per megawatt-hour. The figure that is usually bandied around as being accurate in most cases is that gas production produces 50% fewer CO₂ emissions than coal production, but these figures that I have just cited take the figure for CO₂ emissions from gas production up to something like 70% of the figure for CO₂ emissions from coal production. Again, we need to consider gas production in terms of the environment.

There is also carbon capture and storage, which has been mentioned. If we are to succeed with shale gas production, because of the problems with the environment and the emission levels, CCS must be pushed forward. We have a massive problem after the cancellation of the Longannet plant just two weeks ago. It has taken about six or seven years for that project to be ready to be signed, but it was cancelled at the eleventh hour. It is important that CCS is put back on the table. We have had excellent discussions with the Minister about CCS, and those discussions are continuing. In addition, experts say that the way in which shale gas is extracted largely depends on the emission levels. We did not get into too much detail on what that actually means, but it was certainly something that the experts said to the Committee.

The report clearly outlines that there are now extensive explorations for shale gas taking place in Poland and it recommends that the UK closely monitors the progress of those explorations, which is the right course of action.

In conclusion, shale gas might be the partial answer to future energy supply problems in the UK, but there are so many imponderables at this point that I think that time will tell. Shale gas production has huge potential, and future development and exploration are imperative. We need to continue with that development and exploration, albeit in an extremely safe fashion, stage by stage, and taking the public with us. However, before the UK ploughs ahead with shale gas production, much more clarification is required, particularly in respect of the fracking issue and of the environmental issues.

[Mr Roger Gale (in the Chair)]

Order. I propose to call Mr Mowat next. I shall then call the two Front-Bench spokesmen. If other Members wish to participate in the debate after that, there will be an opportunity for them to do so.