Fracking continues to divide opinion in the UK with recent figures published by the Department of Energy & Climate Change suggesting that, among those people who claim they know a lot about fracking, 53% of them are definite in their opposition to the controversial process, while 33% actively support it.
Those who stated they knew nothing or very little about fracking remained ‘on the fence’, with 60% choosing the neutral or ‘don’t know’ option when asked if they support or oppose it.
This resulted in one standout comment being made in the report: “support for fracking appears to be inversely linked to awareness, as those who know more about fracking tend to be more likely to oppose it.”
However, with the government continuing to push planning applications for hydraulic fracturing projects, it appears that fracking could be here to stay.
For one business in particular, the impending fracking boom is a double-edged sword.
Where’s the dilemma?
As the MD of the north west-based Love Energy Savings which specialises in helping people and businesses to slash their energy bills, I’ve probably spent more time than most weighing up the pros and cons of fracking.
If we are to focus on the positives, on the face of it fracking appears to be a silver bullet for all of our energy problems. The extraction of shale gas creates far less air pollution than electricity that is derived from fossil fuels. This is an important consideration when the UK has set itself the ambitious goal of slashing its carbon emissions by 80%, based on levels in 1990, by 2050. Widespread fracking can also help to significantly lower gas prices for consumers. A study conducted by Brookings showed that natural gas prices have fallen by 47% since the “fracking revolution of 2013” over in the US. It also showed that gas bills tumbled by $13 billion (£8.5 billion) per year between 2007 and 2013, thanks to increased fracking activity, equating to $200 per household.
While it’s not a given that the perceived success of fracking in the US will be replicated on this side of the Atlantic, it’s hard not to be impressed with these statistics. It’s difficult to predict the impact a sudden fracking boom would have, but anything that leads to a substantial downturn in national gas prices would surely work in our favour.
On the flipside, the drawbacks of fracking have been well publicised, particularly in our native north west. In 2011, fracking tests conducted in the Blackpool area were said to be the “likely cause” of earth tremors in the region. Meanwhile, over in the US there’s been evidence of drinking water supplies being contaminated with toxic waste as a result of fracking, and there are also major concerns about the amount of water needed to excavate shale gas. All of this, coupled with the fact that sizeable chunks of the north west have been earmarked for potential gas wells, means that fracking has caused a lot of tension in this part of the world.
Why we’ve distanced ourselves from fracking
It’s easy to see why the government has got behind fracking, as the economic benefits are clear. However, we simply cannot ignore the possible side-effects.
It doesn’t matter how appealing the long-term financial savings might be, from a reputational point of view, businesses like ours cannot support a method of energy generation that could have such a damaging impact in our local community, or any community for that matter. Figures published in 2015 by Defra highlighted the potential for a 7% drop in house prices for people who live within 4km of a gas well (based on studies conducted in Alberta, Canada), which is something else that we mustn’t turn a blind eye to. While none of the team at Love Energy Savings are likely to be directly affected by new fracking projects, people not too far away from us almost certainly will be, and this is no time for an “I’m alright, Jack” attitude. We have to put ourselves in their shoes, and you could argue it’s a similar situation with wind turbines. They’re a great, cost-effective way of generating renewable energy, but would you want one built outside your home?
We all want to see the UK moving towards a secure, renewable energy base in the future. But it is worrying to see so much emphasis placed on fracking, while other forms of sustainable energy generation such as solar and onshore windfarms have had their subsidies cut. The ongoing fracking saga has taught us a few things; firstly that it’s important for businesses to develop a knack for gauging public sentiment. Your reputation could depend on it. Secondly, it’s obvious that the UK government cannot afford to throw all its eggs into one basket as it attempts to significantly reduce our reliance on fossil fuels. By fast-tracking shale gas exploration projects, the government risks alienating a large proportion of the general public at a time when it’s imperative that we’re all pulling in the same direction.
Phil Foster is the CEO of Love Energy Savings, a business energy price comparison specialist based in the North West of England.