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Chamber

Meeting of the Parliament 07 May 2014

07 May 2014 · S4 · Meeting of the Parliament
Item of business
Energy and Climate Change
Fraser, Murdo Con Mid Scotland and Fife Watch on SPTV

No, I need to make some progress.

We should remember that there is nothing new about fracking for shale gas and extracting coal seam gas in Scotland. Back in the 1960s in Lanarkshire, and as recently as the 1980s within the boundaries of the city of Glasgow, fracking has taken place. Also, fracking takes place at the moment in the North Sea with none of the apocalyptic side effects that some in the environmental movement have predicted.

There are four key advantages to exploiting our unconventional gas reserves. The first of those relates to security of supply. We have gone from being a nation that is a net exporter of gas to being an importer. As we develop more and more renewable sources of energy—particularly those, such as wind, that have an intermittent output—our reliance on gas will actually increase over the medium term.

The question then is not whether we will require gas—because it is beyond doubt that we will be increasingly reliant upon it in the coming decades—but where that gas will come from. Will it be produced domestically or will we import it? In future decades, I do not want us to rely on Mr Putin’s Russia for our gas supplies. For that reason alone, it makes sense to develop a domestic source of gas to provide for our energy needs.

Secondly, there is the issue of the impact on energy bills. It is well known that, in the United States, the development of a shale gas industry has dramatically cut energy costs and led to the reindustrialisation of the US economy. Although no one reasonably predicts a similar impact here in the UK, increasing the domestic supply of gas is bound to have a beneficial impact on energy prices.

Thirdly, there is the issue of carbon emissions. The US has saved millions of tonnes in carbon by shifting from burning coal to burning gas. Gas is a fossil fuel, but it is cleaner than coal. As we develop low-carbon alternatives, gas must be a better option, at least in the medium term.

Fourthly, there is the economic opportunity that is presented. There is the potential for tens of thousands of jobs to be created in a new industry—an industry that will be of real benefit to Scotland and which will complement the development of more renewables.

Iain Gray reminded us that, last year, there was consensus among all Scottish political parties that the Ineos plant in Grangemouth should be saved. I am delighted that it was saved. The Scottish and UK Governments worked together and hundreds of jobs in central Scotland were safeguarded. The Ineos plant depends on shale gas as its raw material. The gas is shipped in a fleet of Chinese-built tankers across the Atlantic from Pennsylvania. It is not surprising that Ineos is keen to see a domestic supply of shale gas as a feeder product. On every level, that must make sense.

I do not recall the Green Party, in the course of the past year, distancing itself from the political consensus around the Ineos plan or calling for it to be shut down. However, if the Green Party’s opinion is to be consistent, that is what it should be doing. By opposing unconventional gas, it is opposing those many jobs in the Falkirk area.

I believe that unconventional gas presents a tremendous opportunity for Scotland, always provided that the appropriate environmental safeguards are put in place. I look forward to hearing the Scottish Government’s proposals following its expert review panel. I struggle, though, to understand the lack of enthusiasm from the Scottish Government—a Government that falls over itself to promote the offshore oil and gas industry but seems strangely reluctant to support the same industry onshore.

Like Iain Gray, I have a lot of sympathy for the Government’s amendment and, should the Conservatives’ amendment fall, I would be prepared to support it.

Having recognised the opportunities presented, the UK Government is right to have introduced incentives for the exploitation of unconventional gas. I hope that the Scottish Government follows suit and sees this as a new industry that can be of great benefit to Scotland for future generations.

I move amendment S4M-09927.2, to leave out from “the significant” to end and insert:

“that the Department of Energy and Climate Change’s public opinion tracker now shows that more people across the UK support the extraction of shale gas than oppose it; recognises the benefits for Scotland in exploiting unconventional gas reserves in terms of providing security of energy supply, creating jobs, reducing carbon emissions and potentially helping to reduce energy bills; believes that, with appropriate environmental safeguards in place, this natural resource can be extracted safely and to the benefit of communities; welcomes the UK Government’s support for the industry, and calls on the Scottish Government to show as much enthusiasm for onshore oil and gas as it currently demonstrates for offshore.

References in this contribution

Motions, questions or amendments mentioned by their reference code.

In the same item of business

The Presiding Officer (Tricia Marwick) NPA
The next item of business is a debate on motion S4M-09927, in the name of Alison Johnstone, on energy and climate change. 15:11
Alison Johnstone (Lothian) (Green) Green
It is generally agreed that our energy policy should deliver three things: a secure supply; energy at an affordable cost; and energy that is low in climate-c...
The Cabinet Secretary for Finance, Employment and Sustainable Growth (John Swinney) SNP
I welcome the debate that the Green Party has initiated today on energy and climate change. It provides an opportunity for us to consider the range of measur...
Iain Gray (East Lothian) (Lab) Lab
Mr Swinney knows that I agree with him on the importance of the oil and gas sector. Can he enlighten us as to when he intends to bring forward his revised es...
John Swinney SNP
I told Parliament that I would bring those forward in the coming weeks and that is exactly what I intend to do to assist the debate. While we recognise the ...
Claudia Beamish (South Scotland) (Lab) Lab
In view of recent announcements by electricity companies about the offshore renewables sector, does the cabinet secretary share any of my concerns about how ...
John Swinney SNP
I certainly do not think that the uncertainty that has been created by the electricity market reform process undertaken by the UK Government has helped inves...
Alison Johnstone Green
Although it may be possible to prove that extraction is safe, it simply will not be possible to prove that burning the fuel that is extracted is safe. Does t...
John Swinney SNP
The key point that I would make to Alison Johnstone is that all these issues must be considered within our framework to reduce climate change. I have just co...
The Deputy Presiding Officer (Elaine Smith) Lab
I advise members that there is no extra time available this afternoon, so interventions should be contained within speeches. 15:28
Iain Gray (East Lothian) (Lab) Lab
I start by congratulating Alison Johnstone on bringing the debate to the chamber, because it is an important and current policy issue that, until now, we hav...
Alison Johnstone Green
Is Iain Gray aware that, in areas where unconventional gas extraction occurs, coal-bed methane extraction leads to hydraulic fracturing in 40 per cent of cases?
Iain Gray Lab
They are two different processes, as Ms Johnstone herself pointed out when she complained that one can move easily to the other in the regulatory framework. ...
Murdo Fraser (Mid Scotland and Fife) (Con) Con
I thank the Scottish Greens for giving us the opportunity this afternoon to debate the extraction of unconventional gas throughout Scotland. I commend Alison...
Graeme Dey (Angus South) (SNP) SNP
Will the member take an intervention?
Murdo Fraser Con
No, thank you. When we actually look at public opinion, we see that not everyone is buying that nonsense. According the latest DECC public opinion tracker, ...
Alison Johnstone Green
Will the member give way?
Murdo Fraser Con
No, I need to make some progress. We should remember that there is nothing new about fracking for shale gas and extracting coal seam gas in Scotland. Back i...
The Deputy Presiding Officer Lab
We come to the open debate. We are very tight for time, with speeches of a maximum of four minutes. 15:38
Rob Gibson (Caithness, Sutherland and Ross) (SNP) SNP
As it says in the Scottish National Party amendment, “Scotland has a rich diversity of energy sources including a very successful oil and gas sector and gr...
The Deputy Presiding Officer Lab
I am afraid that you must close now.
Rob Gibson SNP
A recent poll for DECC showed that 50 per cent of Tories would rather live near a wind farm than have fracking in their back yard. Many more people across Sc...
Margaret McDougall (West Scotland) (Lab) Lab
As stated in Labour’s amendment, Scotland needs a robust and balanced energy policy that strives to match our energy needs with our climate change and carbon...
Mike MacKenzie (Highlands and Islands) (SNP) SNP
I welcome the Scottish Government’s precautionary approach to hydraulic fracturing and unconventional gas extraction and, therefore, I have some sympathy—but...
John Finnie (Highlands and Islands) (Ind) Ind
Will Mike MacKenzie take an intervention?
Mike MacKenzie SNP
No—I am sorry but I am short of time. For instance, I was disappointed to hear Patrick Harvie dismiss in a recent debate the opportunity presented by carbon...
Patrick Harvie (Glasgow) (Green) Green
Will Mike Mackenzie give way?
Mike MacKenzie SNP
No, I am not taking interventions because I am short of time. Interruption. Sorry—another occasion, Mr Harvie. In acquiring the expertise to develop world-...
Marco Biagi (Edinburgh Central) (SNP) SNP
To members of the Economy, Energy and Tourism Committee, this is a very familiar topic, although we are used to seeing Murdo Fraser curb his great enthusiasm...
Jamie McGrigor (Highlands and Islands) (Con) Con
I am pleased to close the debate for the Scottish Conservatives. A number of members have rightly referred, as does our amendment, to the importance of ener...