UKOOG respond to Scottish Government announcement that they will move to ban fracking
03 October 2017
Following today's announcement that the Scottish Parliament will move to ban hydraulic fracking, Ken Cronin, Chief Executive of UK Onshore Oil and Gas, said:
"The Scottish Government ignores the advice of its own independent experts and prefers a future where gas will have to be imported with the damage that will do to the economy and the environment. It turns its back on job creation, skills development, an increase in tax receipts and investment in communities. Over the last 20 years, 30 wells have been drilled and produce gas within the Central Belt, without any impact to the natural environment or public health.
This is a poor decision, ignoring Scotland's rich heritage and expertise in oil and gas. It is not based on the evidence from extensive independent research, which clearly states that with appropriate regulatory oversight and monitoring Scotland's regulatory framework is sufficiently robust to manage onshore exploration and production.
Today in Scotland, there are nearly 2m homes and over 22,000 commercial businesses that are connected to gas. 78% of domestic heating is provided by gas and 43% of all gas consumed is by industry. Currently over 50% of that gas is imported into the UK and set to rise significantly over the next few years. There is no viable or affordable alternative to Scottish natural gas from shale other than importing significant quantities of gas.
It is interesting that Paul Wheelhouse should mention the Committee on Climate Change, who have in fact stated that the Scottish Government's own target of having 80% of heating from low carbon sources by 2032 is "very unlikely to be feasible", and that an onshore gas industry could fit well within Scotland's climate change targets if certain conditions were met, which the industry was committed to doing. The reality is that it's better for the planet to be producing our gas here rather than shipping it in across oceans from elsewhere, especially when Scotland has a petrochemicals industry so reliant on natural gas.
But after today's decision, the significant benefits from production will now be lost, and the opportunity to develop a robust future energy mix discarded. This is a decision that is based on dogma not evidence or geo-political reality."
Newgate Communications: Deborah Saw /Andrew Turner
Notes to editors:
The Onshore Industry's view on the research produced by the Scottish Government:
• Up to 3,100 jobs could be created in Scotland.
• Potential £1bn for Scottish communities.
• Up to £6.5bn could be spent in Scotland with an additional £4bn created in tax receipts.
• The overall conclusion of the research was that the evidence reviewed was judged not to be of adequate quality, consistency or statistical power to demonstrate a hazard or health risk. This conclusion is supported by a previous study by Public Health England for the UK Government.
• The additional traffic movements associated with onshore oil and gas resources are unlikely to be significant or detectable at a regional or national scale, in view of the much greater numbers of traffic movements resulting from other activities.
• The contribution of UOG development to traffic and associated impacts such as carbon emissions at a regional or national scale would be slight and comparable to many other industry sectors and activities.
• The probability of felt earthquakes caused by hydraulic fracturing for recovery of hydrocarbons is very small.
• The risk of leakage from abandoned UOG wells is likely to be very low.
• The Committee on Climate Changes 's assessment is that exploiting unconventional oil and gas by fracking on a significant scale is compatible with Scottish climate targets if three tests are met, which the industry believes are already achievable.
UKOOG is the representative body for the UK onshore oil and gas industry, including exploration, production and storage. The organisation's objectives are to enhance the profile of the onshore industry, promote better and more open dialogue with key stakeholders, deliver industry wide initiatives and programmes and to ensure standards in safety, the environment and operations are maintained to the highest possible level. Membership is open to all companies active in the onshore industry including those involved in the supply chain. www.ukoog.org.uk