Unconventional Oil and Gas

Part of the debate – in the Scottish Parliament at on 3 October 2017.

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Photo of Paul Wheelhouse Paul Wheelhouse Scottish National Party

The Government has consistently taken a cautious, evidence-led approach to considering the potential exploitation of unconventional oil and gas in Scotland. As part of that approach, we have ensured that stakeholders and the people of Scotland have had the opportunity to participate in the decision-making process in an open, inclusive and transparent way. Indeed, the Scottish Government has undertaken one of the most far-reaching investigations into unconventional oil and gas by any Government, which included a four-month public consultation that concluded in May. Our talking fracking consultation embodied the Scottish Government’s commitment to the full participation of local communities and stakeholders in decisions that matter to them and impact on them. It has been clear throughout the process that there are deeply held and sincere views on all sides of the debate, including in the chamber.

I wish to update members on the findings of our consultation.

I will also set out the Government’s preferred position on the future of unconventional oil and gas in Scotland, which is based on the findings of our consultation and the extensive evidence that we have collated. As I have previously stated, that preferred position will be brought to the chamber for a full parliamentary debate and vote. We propose that that should happen shortly after the recess. As with our announcement on underground coal gasification on 6 October 2016 and in line with our statutory responsibilities, a strategic environmental assessment will be commissioned following the parliamentary vote to assess the impact of the Scottish Government’s position prior to its finalisation.

Before I update members on the consultation findings, it is important to set the context for that decision. A policy decision on unconventional oil and gas in Scotland does not exist in isolation; it must be viewed within the context of our longer-term ambitions for energy and the environment, manufacturing and the Scottish economy more generally, and, of course, our climate change responsibilities.

The main product from unconventional oil and gas reserves is natural gas, which is our principal source of energy for heating. Shale deposits may also contain natural gas liquids such as ethane. Those important raw materials for our chemical and manufacturing industries are used in a wide range of high-value products, including plastics, detergents and clothing.

The Government recognises that gas will be an important part of Scotland’s energy mix for the foreseeable future and that access to a secure and affordable supply of energy and raw materials is fundamental to the competitiveness and productivity of Scottish business and industry.

A strong and vibrant domestic offshore oil and gas industry can play a positive role in our energy system and is entirely consistent with encouraging a stable, managed transition to a low-carbon economy.

Achieving our vision for energy is crucial to our efforts to tackle fuel poverty and prevent the damaging effects of climate change as part of the global community’s fight to limit global temperature rises to below 2°C while pursuing efforts towards limiting those rises to below 1.5°C.

In addition to support for our manufacturing sectors, the programme for government includes a commitment to introduce a new climate change bill, which will set even more ambitious targets to reduce greenhouse gas emissions. This Government’s view is that we have a moral responsibility to tackle climate change and an economic responsibility to prepare Scotland for new low-carbon opportunities.

Our comprehensive public consultation provided an opportunity for individuals, local communities, industry, academics and stakeholders to comment on and shape this policy decision. Today, we published the full analysis of the consultation responses. We received 60,535 valid responses—the second largest response to a Scottish Government consultation—which is a clear validation of our participative approach. Of the responses, 52,110 or 86 per cent were campaign responses or petitions, and 8,425 or 14 per cent were substantive responses. Of those who provided a substantive response and a Scottish postcode, nearly two thirds or 4,151 live in one of 13 local authority areas identified as potentially having significant shale oil and gas reserves or coal-bed methane.

The consultation was not an opinion poll—that simply would not have done justice to the range of issues that needed to be discussed and considered—but it was clear that the overwhelming majority of respondents were opposed to the development of an unconventional oil and gas industry in Scotland.

Overall, about 99 per cent of the responses were opposed to fracking and fewer than 1 per cent in favour of it. Those opposed to fracking repeatedly emphasised the potential for significant, long-lasting negative impacts on communities, health, the environment and the climate; expressed scepticism about the ability of regulation to mitigate negative impacts; and were unconvinced about the value of any economic benefit or the contribution of unconventional oil and gas to Scotland’s energy mix.

Alternative views were received. Some respondents were either supportive of an unconventional oil and gas industry developing in Scotland or did not feel it was possible to come to a view on the available evidence. Those in favour of an unconventional oil and gas industry emphasised the potential benefits that they perceived for the economy, communities, the climate and Scotland’s energy supply. They said that the risks associated with unconventional oil and gas extraction were no greater than those associated with any other industry and argued that the development of a strong and robust regulatory framework could mitigate any adverse impacts.

Reaching a decision on unconventional oil and gas is the culmination of a period of careful and comprehensive evidence gathering. We have not taken the process or the decision lightly. At each stage, we created opportunities for discourse and debate. I hope that everyone in this chamber, regardless of their views on the topic, would acknowledge that we created meaningful opportunities for participation.

I will set out some more of the considerations that have guided my decision.

In reviewing the research findings, I had particular concerns about the insufficiency of epidemiological evidence on health impacts highlighted by Health Protection Scotland.

I also note the conclusion of the United Kingdom Committee on Climate Change, our advisers on statutory targets, that unconventional oil and gas extraction would make meeting our existing climate change targets more challenging. Indeed, as the UKCCC states in its report, in order to be compatible with Scottish climate change targets, emissions from production of unconventional oil and gas would require to be offset through reductions in emissions elsewhere in the Scottish economy. Given the scale of the challenge that we already face, that would be no easy task.

I note that KPMG concludes in its report on the economic impact of an unconventional oil and gas industry in Scotland that, under its central development scenario, on average, only 0.1 per cent annually would be added to Scottish gross domestic product, should fracking be given the go-ahead.

I have also been mindful of the important reality that the potential activity associated with an unconventional oil and gas industry would be concentrated in and around former coalfields and oil shale fields in the central belt, which are among the most densely populated areas of Scotland. Our consultation demonstrated that communities across Scotland, particularly in areas where developments could take place, have yet to be convinced that there is a strong enough case of national economic importance, when balanced against the risk and disruption that they anticipate on matters such as the risks of pollution and the impacts on transport and their general health and wellbeing.

Although I am sure that an unconventional oil and gas industry would work to the highest environmental and health and safety standards, it is our responsibility to make a decision that we believe to be in the best interests of the people of this country as a whole. We must be confident that the choices that we make will not compromise health and safety or damage the environment in which we live.

It is also our view, having considered the matter in considerable detail, that the outcome of our public engagement shows that in the communities that would be most affected there is no social licence for unconventional oil and gas to be taken forward at this time, and the research that we have conducted does not provide a strong enough basis from which to adequately address those communities’ concerns.

Taking all that into account, and balancing the interests of the environment, our economy, public health and public opinion, I can confirm that the conclusion of the Scottish Government is that we will not support the development of unconventional oil and gas in Scotland.

To put that position into immediate effect, we have today written to local authorities across Scotland to make it clear that the directions that gave effect to the moratorium will remain in place indefinitely. That action means that we will use planning powers to ensure that any unconventional oil and gas applications are considered in line with our position of not supporting unconventional oil and gas.

Let me be clear: that action is sufficient to effectively ban the development of unconventional oil and gas extraction in Scotland. The decision that I am announcing means that fracking cannot and will not take place in Scotland.

My comments relate to the use of planning powers. Of course, this Parliament awaits the transfer of licensing powers that the United Kingdom Government promised and legislated for in the Scotland Act 2016. The commencement order for the powers was expected in February this year but has yet to be progressed by the UK Government. The licensing regime currently takes place under a European Union hydrocarbons licensing framework. We are concerned that the powers appear in the list that the UK Government provided of areas that it might reappropriate as a result of Brexit.

That would be unacceptable. I have, therefore, written today to the Secretary of State for Business, Energy and Industrial Strategy, Greg Clark, to set out our position on the future of unconventional oil and gas in Scotland and to seek assurances that no such power grab will take place and that the powers that have been promised will be transferred to the Scottish Parliament as soon as possible.

Although that is important, I want to make it crystal clear that using our planning powers in the way that I have set out allows us to deliver our position, no matter what Westminster decides. I am aware that there is a proposal for a member’s bill on the issue from Claudia Beamish. However, the use of planning powers is an effective and much quicker way to deliver our policy objective, as with our actions on nuclear power stations. Legislation is therefore not necessary.

I acknowledge that Scotland’s chemicals industry has conveyed strong views on the potential benefits of shale for Scottish industry. I want to be clear that, notwithstanding our position on unconventional oil and gas in Scotland, our support for Scotland’s industrial base and manufacturing sector is unwavering. Manufacturing and the chemicals industry continue to play a crucial role in the Scottish economy, and we understand that a supportive fiscal regime, affordable energy, access to the right skills, and good infrastructure are all essential to future success. That is why this Government will continue to support industry in a range of ways in the months and years to come.

At the outset of devolution, one of the principal aims of this Parliament was to bring decision making closer to those who are most affected. That ethos has underpinned our approach in reaching a decision not to support the development of unconventional oil and gas in Scotland. Taking full account of both the available evidence and the strength of public opinion, my judgment is that Scotland should say no to fracking. That position will be reflected in our finalised energy strategy, which we will publish in December.

The next step in this process will be for the Scottish Government to lodge a motion for debate, to allow the Parliament to vote on whether to support our carefully considered and robust position on unconventional oil and gas.

I thank everyone who contributed to the process. It is right that this Government sought expert, independent, scientific advice and that we took the time that was needed to seek the views of the people of Scotland. The people have spoken. The time has come to move on.