Scotland Launches Fracking Referendum
Fracking could provide “important benefits” for the petrochemical sector, the Scottish Nationalist Party (SNP)-led government said at the official launch of a public consultation on shale gas exploration on Jan. 31.
The ministers pointed to olefins and olefins giant Ineos’ imports of shale gas-derived ethane to its production complex at Grangemouth, which the company has suggested could come from Scotland in future, as an example of how fracking could have a “positive effect on the petrochemical industry.” At the same time, it acknowledged that it would not boost the overall economy.
Ineos, which has been awarded a large number of licenses for exploration, has been leaning heavily on the devolved Scottish government to allow fracking to go ahead north of the border, as the UK government has done in the rest of the country. However, the practice is equally controversial on “Both Sides the Tweed”, to paraphrase an iconic Scottish song that encourages understanding between two parts of the country often at odds.
During the four-month public consultation, the government will try to gain insights into public sentiment for or against exploration for unconventional gas before making a decision on whether or not to end a moratorium in place since January 2015, which prevents hydraulic fracking for shale oil and gas, as well as coal bed methane extraction.
Energy Minister Paul Wheelhouse said the government would make its final decision by the end of 2017. He said the debate on the future of unconventional oil and gas in Scotland “has proven both complex and controversial, but “we want to create space for dialogue and allow different perspectives to come forward.” A dedicated website, www.talkingfracking.scot, has been set up for the purpose.
In the SNP's Holyrood Manifesto, the party says it will not allow fracking unless it is “proven beyond any doubt that there is no risk to health, communities or the environment.” Depending who is doing the calculation, central Scotland’s shale beds have been estimated to contain up to 134 trillion cubic feet of gas.
Fracking opponents have noted that the text for the consultation refers to possible ways of “managing” and “mitigating” rather than avoiding risks. In drafting the text for the consultation, the government did not take a stance for or against fracking, although it said it recognized there was widespread public concern about its potential impact. At the same time, it said a “precautionary approach” could address health fears, with “a range of mitigation measures”, including best practice and community engagement.
Following an independent analysis of the consultation results, the government, colloquially called “Holyrood” for the royal palace that once housed it, said it would consider “the full range of evidence” and make its recommendation, while giving “careful consideration to the extraction methods for both shale oil and gas and coal bed methane.”
