Energy: Gas

Lord Lawson of Blaby Excerpts

Tuesday 29th May 2012 Lords Chamber

[Lord Marland]

I totally agree, although I am not sure I agree that there is a seriously developing situation. We now have 240 years of gas supply throughout the world, which is extremely encouraging. What is more, that gas supply is very liberally scattered across countries such as Mozambique, which has just discovered gas, and Algeria, which has discovered more shale gas, as has America. I do not hold with the last point made by the expert noble Lord.

However, clearly this is no time for complacency and this may be an opportunity for me to say that we have 150% of LNG capacity in this country above demand. We are increasing the amount of storage by 20%. We still have just under 50% of our own supply. We have had unprecedented demand for our new round of licences. So the situation is not as gloomy as the noble Lord indicated.

[Lord Lawson of Blaby]

My Lords, does my noble friend the Minister agree that the best way of safeguarding our gas supplies is the most rapid development of our indigenous shale gas resources? Will he give an undertaking that the Government will present no impediment to the rapid exploration and development of our own shale gas?

[Lord Marland]

I cannot guarantee that there will be no impediments; nor would my noble friend expect me to. The reality is that we are taking this very thoroughly and steadily. The Government fully support this development. At the moment, according to the British Geological Survey, shale gas equates to only 5% to 10% of our potential gas supply, but it is still a significant figure.

[Lord Lawson of Blaby]

No one knows.

[Lord Marland]

As my noble friend says, no one knows. The British Geological Survey’s latest report, which we await with bated breath, will be very indicative.