Myth #2 Energy Prices

Myth: “Fracking will lower UK energy Prices”

Fact: Although this claim has been made by politicians, most economists and gas industry executives do not believe this is the case because of the nature of the EU energy market and the amount of gas available.

David Kennedy, head of the Committee on Climate Change – the government’s official adviser – said that “fundamental economics” showed bills were unlikely to fall. “It is highly unlikely to happen here. There isn’t enough shale gas in the UK and in Europe to change the European market price.”  Even Lord Browne says:

LONDON, UNITED KINGDOM: Group Chief Executive of British Petroleum (BP) , Sir John Browne poses prior to a press conference at the company's headquarters 08 August 2000, in London. BP reported today a rise of 164 percent in pro forma results, adjusted for special items, in the second quarter of 2000 to 3.61 billion dollars. The BP group said that its profits for the first half of the year had risen by 197 percent. (ELECTRONIC IMAGE) (Photo credit should read ADRIAN DENNIS/AFP/Getty Images)

Photo credit: Adrian Dennis/AFP/Getty Images)

“We are part of a well-connected European gas market and, unless it is a gigantic amount of gas, it is not going to have material impact on price.”

Lord Browne, former BP Chief Exec., former chairman of fracking company Cuadrilla, and Government’s Lead Non-Executive Director