“Exploit Scotland’s onshore and offshore shale gas potential” is the call from Mid-Scotland and Fife MSP Murdo Fraser during General Question time in the Scottish Parliament.
The Conservative member who is also Convenor of the Scottish Parliament’s Economy, Energy and Tourism Committee made the call whilst questioning Finance Minister John Swinney.
Chamber exchange attached below:
7. Murdo Fraser (Mid Scotland and Fife) (Con): To ask the Scottish Government what it is doing to exploit the potential of Scotland’s shale gas reserves. (S4O-02258)
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney): Proposals for coal-bed methane or shale gas production in Scotland will be studied on their merits. Each proposal will be considered through the normal planning process and under the appropriate regulatory regimes, including the Scottish Environment Protection Agency’s guidance on the regulation of shale gas and coal-bed methane, which was published in December 2012. The Scottish Government will continue to support Scottish companies in the oil and gas supply chain to utilise their world-leading skills, knowledge and expertise in the development of opportunities that are presented across Europe and further afield.
Murdo Fraser: This week’s report from the United States Energy Information Administration states that the United Kingdom’s technically recoverable shale gas reserves are 26 trillion cubic feet—10 times our annual gas demand—of which a reasonable chunk is in Scotland. The Institute of Directors previously estimated that 35,000 jobs could be created from this new industry. Given that, in the US, shale gas has delivered a 50 per cent cut in wholesale energy costs, a reindustrialisation of the economy and a cut of millions of tonnes in carbon emissions, will the Scottish Government be enthusiastic about pursuing the new opportunity?
John Swinney: As Mr Fraser knows well, the Scottish Government’s approach is designed to support and maximise sustainable investment in our economy. We will continue to take that approach.
As I said, individual applications for the development of shale gas reserves will be studied on their merits and considered through the due process that the existing arrangements in Scotland provide. The Government and its regulatory authorities will give due consideration to any approaches that are made.
It is essential to rely on substantive and quality information about the availability of resources and the manner and the practicalities of exploiting resources, which will be an implicit part of the assessment when each application’s merits are considered.
Commenting outside the chamber Murdo Fraser MSP said:
“Shale gas has revolutionised energy markets in the US and has substantially reduced costs for both consumers and industry and I believe it has the potential to do the same for Scotland.
“Nearly 40% of Scottish residents are struggling in fuel poverty. I want to see a proactive Scottish Government approach on shale gas that will give hard up Scots a route out of fuel poverty.
“Recently I have visited several factories in my region, and they are crying out for shale gas in order to level the energy price playing field. Unless the Scottish Government can devise a balanced, fair and affordable energy policy, high energy prices will cost manufacturing jobs.
“The potential for offshore shale gas has yet to be explored and I would recommend that the Scottish Government follow DECC’s recommendations and use the existing North Sea infrastructure to tap into this resource.”