First, some background on UK shale oil and hydraulic fracturing. The UK Government has been investigation fracking since 2011, this idea has been getting increasingly closer to reality over the past 2 years. The interest in fracking sparks from the need to increase national energy security through investing in onshore sources of oil and gas. Currently, gas makes up around 40% of our overall energy demand and this is expected to stay the same well beyond 2030.
There are more than 170 licenses available for onshore oil and gas exploration in the UK, however there are some distinct differences between the American and UK application processes. These Petroleum Exploration Development Licenses do not give consent for any kind of drilling or extraction operations. The Operators need to gain planning permission (possible EIA included), which in itself can be a lengthy process, permits from the relevant environment agency, permission from the landowner and a Health and Safety examination. The consent for drilling would come from the Department for Energy and Climate Change; however with the recent changes in the Cabinet this department no longer exists, leaving some changes to be made in the government guidance documentation.
Image source: Ian Forsyth/Getty Images via The Guardian
In the UK, attempts to introduce fracking into the energy mix have been hampered by picket lines and campaign groups with concerns about the environmental effects of fracking. The public opposition has been listened to and taken into account through the planning permission process. It is a common belief that the money invested in fracking should go towards investment in UK renewable energy technologies.
The latest development in the government’s attempts to make fracking easier to swallow is to directly pay the residents in the areas pegged as drill sites, rather than the local authorities. The idea is to compensate these host communities with direct revenue from fracking, although this has been met with opposition from anti-fracking groups. The proposition has been viewed as a method of bribing residents to accept fracking in their locality.
An alternative to these pay-offs could be to put the revenue into the Global Climate Fund, revamped under Article 9 of the Paris Agreement made in December last year. It was put forward that a fund of US$100 billion be provided annually by the developed countries to support poorer countries in adapting to the effects of climate change. Using the fracking revenue could help the UK economy support their commitment to the Fund and their own environmental targets.
As a country with the luxury of choice between fossil fuels and renewable resources, it should be the UK’s responsibility to pay for the environmental costs they are still choosing to contribute to.
Written 19.08.2016
Further information on fracking:
