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Fracking shouldn't be ruled out, says Oil & Gas UK

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Fracking
Fracking

Fracking will be significantly restricted by new regulations



Government should allow firms to continue searching for onshore unconventional gas supplies to meet the country's future energy demand, says Oil & Gas UK.

Fossil fuels account for around two-thirds of the UK's energy consumption, particularly in homes and transport, and domestic production must continue to avoid future reliance on costly imports, urged the oil and gas industry body.

The boom in unconventional gas released through "fracking" in the US has driven down oil prices and plunged the North Sea oil sector into crisis, prompting city leaders in Aberdeen to hold an emergency summit of politicians, industry representatives and unions today.

Scottish energy minister Fergus Ewing last week announced that there is to be a moratorium on granting consents for unconventional oil and gas developments in Scotland while further research and a public consultation is carried out.

The decision came days after the government voted against a moratorium.

Speaking at the Aberdeen conference, Oil & Gas UK chief executive Malcolm Webb said: "I don't like this word unconventional because I think it is not unconventional - it is normal natural gas.

"We should be looking on and offshore for that, we should be exploring all avenues because I believe that we are going to need all of it.

"The onshore unconventionals are not likely to make a major contribution to the gas supply situation in this country for eight to ten years, but that doesn't mean to say that we shouldn't be looking.

"The North Sea is still the big producer and it's the North Sea that carries you in the short term."

Meanwhile, new analysis suggests that almost all the areas being made available for fracking in England will be hit by new regulations restricting the controversial process.

Greenpeace renewed its call for a ban on fracking, as it said 97% of the areas made available for new onshore oil and gas licences would be at least partially affected by the new conditions.

The government has accepted Labour moves to ban fracking from national parks, Areas of Outstanding Natural Beauty, Sites of Special Scientific Interest and some groundwater protection zones, areas which feed aquifers.

Almost half (45%) of the 931 licence blocks in England would be significantly affected by the changes, with at least half of the area they cover overlapping with one or more of the protected areas.

Some 68 of the 416 significantly-affected blocks would likely be entirely off limits for fracking, if Labour's amendments to the Infrastructure Bill are passed by the House of Lords, as they fully overlap with protected areas, Greenpeace said.

And 489 blocks (53%) would be partially affected, as they had some environmentally sensitive areas that could not be fracked.

Just 26 licence areas contain no regulated areas, and could be freely fracked, Greenpeace claimed.

The government is pushing for the development of a shale industry, claiming it would create jobs and growth, reduce energy prices and cut the country's reliance on gas imports.

However, opponents have raised fears that fracking causes earthquakes, can pollute water supplies, and could lead to inappropriate development in the countryside and damage house prices.

There are also concerns over the impacts for the climate of exploiting more fossil fuels.

The debate has intensified in recent weeks, with Scotland imposing a moratorium on planning permission for the process and a new poll showing that 40% of people were against fracking in the UK, outstripping those in favour of it going ahead.

A decision on giving planning permission to two new fracking sites in Lancashire, where much of the resource is thought to be found, has also been delayed.

 

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