Shale Gas Production

(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.

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.

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.

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.

I congratulate the hon. Member for Ashfield (Lee Anderson) on securing this urgent question. He is right to try to smoke out the Government’s position, and it is no wonder he is confused—I think he will remain confused after the Minister’s reply.

Let us be clear that the Government placed a moratorium on fracking because they said it is dangerous and they could not rule out

“unacceptable impacts on the local community.”

The Business Secretary said in 2020 that “fracking is over,” and just a few days ago he wrote

“it would come at a high cost to communities and our precious countryside”.

Yet last Wednesday, just three days later, the same Business Secretary said

“the Government are open to the idea.”—[Official Report, 9 March 2022; Vol. 710, c. 355.]

Yesterday, at Chatham House, the Minister ruled it out. The Government are all over the place.

I will ask some questions, because this issue does matter. It is about our energy security, it is about communities that are deeply worried about the impact of fracking, and it is about the climate crisis. Has the Minister or his Department seen any scientific evidence since the 2019 moratorium that suggests fracking might not be dangerous and might be safe? If he does not have any evidence, why is he approaching the Oil and Gas Authority to ask it not to concrete over the wells, which was the original decision? If he does not think fracking is safe, why is he sowing uncertainty in communities across our country? If he does not have any evidence, will he assure the House that no review of fracking—no nods, no winks and no nudges—will be announced in the relaunch of the Government’s energy strategy? Clarity on this matters.

I am delighted to see the right hon. Gentleman at the Dispatch Box. He says he is confused, but I have been absolutely clear that Government policy is unchanged from the 2019 manifesto. I am not sure what he finds confusing about Government policy being unchanged.

We did not put our 2019 manifesto on an Ed stone, but it is available online for anybody to see the manifesto pledges on which all Conservative Members ran. Government policy is unchanged, with or without an Ed stone. The right hon. Gentleman says we are sowing uncertainty. No, we have given absolute certainty. Government policy is unchanged from the pause announced in December 2019. There is no review. This is a science-led policy, and support from local communities would be needed if there were to be a change.

Finally, we heard about the “green energy sprint”, which is extraordinary. Since the right hon. Gentleman was Secretary of State for Energy and Climate Change in 2010, we have increased the proportion of our electricity generation coming from renewables from 7% to 43%. In any normal terms, that would be a sprint, but it is also a marathon, in the sense that we have done that over 12 years. It has been almost a “sextupling” of the amount of energy coming from our renewables since he was in office. He talks about nuclear, but he will also remember the 1997 Labour manifesto, which said that Labour saw “no economic case” for new nuclear power stations. He has the cheek to come to the Dispatch Box today to urge that we get on with nuclear. The Government are getting on with nuclear and with renewables, doing exactly the green energy sprint that he has suggested.

I call the Member whose constituency has been mentioned, Mark Menzies.

Let me outline at the start that this does affect my constituency, and I am disappointed that my hon. Friend the Member for Ashfield (Lee Anderson) did not have the courtesy to give me advance notice that he was going to be asking a question pertaining to my constituency.

These are not viable wells. Will the Minister just confirm that? The wells in 2012 that caused the first national moratorium were concreted over, with the blessing of Cuadrilla. The last thing it wanted to do at that point was frack again in those wells, so it dug 3 miles away. Both those wells have triggered the second national moratorium, so they are not viable wells. Will the Minister confirm that and stop this nonsense now?

My hon. Friend illustrates well the point about the importance of keeping local community support if this were to happen. As stated in our manifesto, this was based on what local communities felt at that time. I do not think any local community felt it more strongly than my hon. Friend’s in Fylde. On the process, we have been clear that if Cuadrilla were to apply to the Oil and Gas Authority to extend that deadline, this would be considered by the OGA in the usual way. I repeat that the Secretary of State and I spoke to the OGA just this morning to confirm that.

I call the Scottish National party spokesperson, Alan Brown.

It is a rare thing in the Chamber but I completely agree with the hon. Member for Fylde (Mark Menzies) and the Minister’s opening remarks: now is not the time for knee-jerk reactions. Given that we have this energy crisis, now is the time to stay strategic and not make daft decisions. Clearly, doing fracking would not do anything to change the west’s reliance on gas, even if, as the Minister’s says, the UK does not rely on Russian gas. He can reconfirm that fracking would not release enough gas to change the international market price, so we would still be paying the same wholesale prices. Is it not the case that there is not enough geological and scientific coring information, to the right depths, to understand the viability of extraction, let alone the risks of seismic tremors, which, as we have already heard, occurred at Preston New Road? Therefore, fracking should be ruled out, in the way the Scottish Government have done. Do we not need to invest heavily in renewables? We keep hearing about nuclear from those on the two Front Benches, but committing £63 billion of capital and financing costs to Sizewell C is madness. Our approach should be straightforward renewable energy. I keep going on about pumped storage hydro. Last week, the Secretary of State said that I had been going on about it for 18 months and that it is a good solution but he needs to assess value for money. When are we going to get that value for money? When are we going to get a change to the transmission grid charging system, which is blocking the deployment of Scottish renewables? We need to invest more in tidal stream, to increase the floating offshore target and to set an onshore wind target as well. Let us maximise investment in renewable energy.

I thank the hon. Gentleman for that response. He is right in the first part of what he says: fracking is unlikely to change gas prices—or UK fracking is unlikely to do so. It is certainly unlikely to change it quickly, which is what I said in my opening statement. He is also right to point to the importance of following the science, and geological information is really important. However, I have to say to him that on nuclear he continues to be wrong. The SNP’s ideological hardcore opposition to nuclear is against Scotland’s interests. We have just seen the closure of the Hunterston nuclear power station, which provided enough nuclear energy to supply every home in Scotland for 31 years. It was a great Scottish, as well as UK, solution. Our other great source of gas is the North sea, where I would like to see the SNP approach becoming more constructive and supportive of the North sea transmission deal that the UK Government did a year ago.

I support what my right hon. Friend is saying about the need for more renewables and for nuclear. We all support the objective of net zero by 2050, but we are now in a gas supply crisis. The Government insist that we are in a European market; Europe is heavily dependent on Russia. We need to produce as much gas as we can. It is a simple question: is shale an option for the Government in the immediate term, or not? That is what we need to know; otherwise, the wells will be concreted over, which the Government said they do not want.

I thank my hon. Friend for his support for renewables, nuclear and net zero, all three of which belong together, right at the centre of Government policy. He said that there was a gas supply crisis, but I would not characterise it that way. The UK has very secure sources of gas supply: around about 50% comes from the UK continental shelf; a further 30% comes from Norway, our great friend and NATO ally; and 20% is bought on the international market. There is obviously an issue with the price, but I do not share in my hon. Friend’s characterisation of a gas supply crisis.

Finally, my hon. Friend asked whether shale is an option. I repeat that Government policy in this area is unchanged: if people can show that the scientific base and the local community support is there, Government policy would be to allow shale if that turned out to be where those two key considerations led.

As the Council of Europe rapporteur on hydraulic fracturing, I know, as may the Minister, that 5% of the methane produced by fracking is leaked through fugitive emissions. As methane is 80 times worse for global warming than carbon dioxide, that makes fracking worse for global warming than coal, so instead of looking at fracking will the Minister redouble his efforts on renewables, in terms of wind farms in England and marine in Wales? Will he also look to store renewable energy in organic batteries which, when produced at scale, are cheap and do not result in pollutants?

There were a few questions there. In respect of the data on emissions, it is impossible to judge what UK fracking emissions would look like because data has not been produced on that.

The hon. Gentleman says that fracking is worse than coal; I can be certain that there are more emissions in the production of liquefied natural gas than in the UK continental shelf natural gas. That is for sure—there is two and a half times as much. I would expect the hon. Gentleman to rally behind our call to maintain the UK continental shelf production that is currently ongoing and to import, hopefully, less LNG.

The hon. Gentleman talks about redoubling in respect of renewables. We have Europe’s largest installed offshore wind capacity, which we are already committed to quadrupling. That is twice the rate of the redoubling for which he called.

The moratorium introduced ridiculously low seismic limits that appeared to have been written by someone who did not understand the Richter scale. Should not the decisions be taken by local planning authorities, with community involvement, and the limits set at levels similar to those we might see for development in London, for example? Should we not be locking in the community benefits of fracking sites?