Shale Wealth Fund — House of Commons, 2016-11-21
Topic: Energy
Jane Ellison (Conservative, Centre-right): I thank the right hon. Member for Don Valley (Caroline Flint) for bringing this debate to the House and for a typically thoughtful and constructive speech. I also thank other hon. Members who have stayed to make their contributions on this important topic I should say straight away that I absolutely agree that energy efficiency is one of the best ways to reduce energy bills in the long run, so we start on a note of consensus. As the right hon. Lady will know, and as I will make clear in my remarks, the fact that the consultation closed relatively recently inevitably limits a little what I can say. However, I enjoyed her speech, and I would like to make some general comments about where we are in terms of shale and the shale wealth fund The Government are backing the safe development of shale gas. We have over 50 years’ experience of regulating onshore oil and gas. The UK has the experience to develop our shale gas industry while at the same time ensuring the most robust and stringent protections for our environment, too We believe, as I sense other Members do, that shale gas is an important step forwards in a number of respects. It is a way to secure our energy supply by using our own domestic resources, as we have heard. It also brings with it the potential for tens of thousands of new jobs across various sectors, from the oil and gas industry to construction and engineering. I was very struck when I recently chaired our oil and gas forum in the Treasury just how many jobs are created in supply chains by these industries—it was one of the most striking things to come out of that discussion Of course, natural gas will continue to play an important role in our energy system as we move towards a low-carbon economy. We are absolutely committed to reducing our carbon emissions by at least 80% by 2050, compared with 1990 levels. Members on both sides of the House will recognise the fundamental importance of our doing so as part of the collective— indeed, global—efforts to stop climate change in its tracks. We are the first country to propose a phase-out of unabated coal, with gas and nuclear forming the secure base of our future energy mix as we continue to develop renewables and improve energy efficiency. I could not agree more that that is a really important part of the mix Shale will be a new, domestic source of gas, which adds to our energy security as we make the shift from coal to reduce our carbon emissions. Gas is the cleanest fossil fuel, producing half the carbon emissions of coal when it comes to generating power. Studies have shown that the carbon footprint of our shale gas would be significantly less than coal and comparable to the liquefied natural gas we import. In short, the shale gas resources beneath Britain could contribute to our security of supply, to jobs, and to increasing tax revenue, while providing a bridge to the greener future we all support That is why, in the previous Parliament, we put in place the right fiscal framework to make sure that the incentives are in place for investment in shale gas. It is worth reminding the House that there is an estimated potential cumulative investment in the region of £33 billion. As we explore our shale gas resources, we are also exploring how we can make the most of the benefits that the industry could bring to our economy. Specifically, we want to ensure that the communities and regions that host shale activity will benefit directly from doing so. By that, I mean that they should benefit beyond the boost to the local economy that one would expect them to receive in any case from the development of this new industry. The Prime Minister has been very clear on this. Local people must come first, not only in their involvement in the planning decisions that affect them, with all shale gas applications requiring a full consultation with local people, but in sharing the benefits with the areas in which the industry is developed, with a significant proportion of this expected in the north. That means that the shale industry could play an important role in the economic development of parts of the northern powerhouse, helping to drive local growth, investment and jobs even further.