IEA - Banning UK fracking while importing US fracked gas makes no economic or environmental sense

Andy Mayer, energy analyst at free market think tank the Institute of Economic Affairs commented on reports of an imminent gas deal with the United States

Banning UK fracking while striking deals to import US fracked gas prioritises climate posing over climate action. It reduces our energy security, risks higher bills, and deliberately undermines the public finances.

Imported gas, cooled, and shipped in vast tankers, has a higher carbon footprint than gas drilled at home. Anti-fracking campaigns are not environmentally sound positions while we remain reliant on fossil fuels for 75 per cent of our primary energy.

Both the incumbent US President and his leading rival are protectionists. They have considered blocking gas exports to keep prices low at home. A US gas deal is not a guarantee of supplies should the war in Ukraine escalate and OPEC restrict supply, in sympathy with Russia.

Increasing the supply of gas in the UK does not guarantee lower prices but does make it more likely. Claims that UK fracking will have no impact on prices are demonstrably false; increasing the supply of any good has that effect.

Gas drilled in the UK can be taxed in the UK. Imports are taxed at home. With energy price caps in force we are either increasing taxes in the UK to pay subsidies on imports or extending borrowing. Both measures are damaging to future UK growth and the cost of living.