Evidence of Public Interest Issues submitted for Session 3 on Economy. 15.01.2015
CW&C Cross Party Working Group investigating Unconventional Hydrocarbon Exploitation
- Damage to the economy from the government which gives petrochemical energy companies nine times more subsidies than the renewable energy industries;
- Potential damage to the economy from the Transatlantic Trade Agreement which allows such companies to sue governments for making laws which adversely affect their profits;
- Loss of revenue from not requiring petrochemical companies to take full financial responsibility for all life cycle costs due to the exploitation of hydrocarbons and allowing the public to carry many of the costs and risks.
Detailed Issues to be addressed
- Potentially adverse effects on existing sensitive and high risk installations with increased risks of seismic activity and seismic thresholds, fire and explosions;
- Potential damage to properties and effects on insurance, mortgages and property values some of which may be caused by contingent environmental issues or the risk of them;
- Potential water shortages and or contamination of water, air or soil, adversely affecting other industries including farming, food production, the zoo, tourism and brewing;
- Lack and diversion of investment/loss of jobs in renewables and sustainable industries;
- False claims regarding numbers of jobs UGO will bring and UK/reduction of gas prices;
- False UGO industry claims regarding energy security as opposed to locally based sustainable resources;
- The cost to claimants and the public for damage to health or property which should be paid or underwritten by the industry up front. USA experience shows much use of stonewalling and use of massive power and resources to bankrupt and gag claimants and local institutions;
- The costs of contingent health care and monitoring;
- The full cost of monitoring, regulating and maintaining the wells in perpetuity which should be paid or underwritten by the industry up front;
- The increased cost of flood protection contingent on exacerbating climate change;
- The historically high risk of exploitation companies claiming bankruptcy and reneging on long term responsibilities and leaving ‘orphaned’ wells to be maintained at cost to the public;
- Diversion of investment in sustainable, renewable energy technologies such as Carbon capture and storage, energy-saving, and development of novel energy-efficient technologies, more efficient solar panels and wind turbines.
Community Attendees to be confirmed
Supporting Material submitted in Evidence
Evidence to CWaC Working Group for Session 3 Economy on 15 January 2015 References and Sources –
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Chartered Institute of Environmental Health (2014) ‘Shale gas and fracking: examining the evidence’
Chester Zoo. Statement in Chester Chronicle (March 2014) http://www.chesterchronicle.co.uk/news/chester-cheshire-news/chester-zoo-hits-out-against-6869427
Davies, R.J., Almond, S., Ward, R.S., Jackson, R.B., Adams, C., Worral, F., Herringshaw, .L. G.,
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Department for Energy and Climate Change. (Oct 2014) Community Benefits for Onshore Wind Farms. Best Practice Guidance for England.
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Friends of the Earth, (2014). Coal Bed Methane. Briefing Note. http://www.foe.co.uk/sites/default/files/downloads/coalbed_methane.pdf
Institute du Development Durable et des Relations Internationnales (IDDRI) Unconventional Wisdom: An economic analysis of US Shale Gas and implications for the EU. http://www.iddri.org/Publications/Collections/Syntheses/PB0514.pdf
Jones N.S., Holloway S., Creedy D.P., Garner K., Smith N.J.P., Browne, M.A.E. & Durucan S. (2004). UK Coal Resource for New Exploitation Technologies. Final Report. British Geological Survey Commissioned Report CR/04/015N. Cleaner Coal Technology Programme, COAL R271. http://www.fraw.org.uk/files/extreme/bgs_coal_2004.pdf
Smythe, D.K. (2013). Written Evidence to the House of Lords Economic Affairs Select Committee on the ‘The economic impact on UK energy policy of shale gas and oil’. http://www.barcombe.org/fracking/docs/Prof%20David%20Smythe/Smythe%20shale%20gas%20submission%20to%20HoL%20v1.5.pdf
Smythe, D.K. (2014) Coal bed Methane. Coal Bed Methane. The Geological and Environmental Risks.