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:
“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