Still too early to gauge shale gas impact, say MPs

"It is still too early to conclude what effect shale gas will have on gas prices in the UK," MPs have said.

In a report published by the Energy and Climate Change Committee (ECCC) today, MPs have said there are too many uncertainties surrounding the UK’s shale gas reserves to determine what the impact would be on the energy market here.

However, they have said the development of the shale gas industry “is likely to be different to the experience of the US”, and the same impacts on gas prices are also unlikely to be had.

The ECCC has recommended that we should “learn the lessons of the US experience” by creating a “favourable climate for companies to operate in”, while ensuring environmental damage is avoided.

In order to gain a better understanding of the shale gas reserves the UK has, the ECCC said the government should encourage exploratory drilling, providing that public concerns about the environmental impact are recognised and taken into account.

The committee has praised the government’s caution over providing estimate over the UK’s shale gas reserves, and is recommending when it does provide an estimate, it should be explicit over the definition it is using.

The ECCC says it should use “the most relevant” definition, which it claims is recoverable assets.