Energy: Shale Gas

Lord Reay Excerpts

Monday 28th March 2011 Lords Chamber

[Lord Reay]

Is the Minister satisfied that the announcement in the Budget of a floor price for carbon, to be introduced from 2013, will not discourage investment in this extremely promising source of abundant and cheap energy?

[Lord Marland]

My Lords, it is abundant and cheap in America, where a great amount of it has been found—three times the supply, in fact. However, we have different problems here in the UK. We have a high population density and are unsure of the reserves. There are all the planning issues that go with high population density. Therefore, it will not necessarily at this point mean a huge surge in the gas supply in this country. However, the point that my noble friend makes about taxation and the carbon floor price will be taken into account with this technology.