Reshuffle: What now for shale?
16 Jul 2014
Yesterday the shale oil & gas industry lost one of its most effective political champions to the Ministry of Defence.
As part of Prime Minister David Cameron’s cabinet reshuffle, energy minister Michael Fallon was promoted to become defence secretary.
Good news for Fallon, but potentially less so for those lobbying for a ramping up of fracking in the UK in the coming years: Fallon has led the government’s charge on shale gas development, and also been highly supportive of related process industries such as the chemicals sector.
The two ministers that have effectively replaced Fallon - former skills minister Matthew Hancock , who will have a joint role as a minister in both the business and energy departments, and junior minister Amber Rudd – have both in the past been supportive of the “green agenda” and climate-change related policies.
Hancock has spoken in his Suffolk constituency of the “need to act to tackle the risks posed by climate change” , while Rudd has been supportive of solar farms in her Sussex constituency.
However, despite the replacement of the experienced Fallon with younger and “greener” ministers, it looks unlikely that the government will make a u-turn any time soon on Cameron’s promise to use shale gas to revitalise the nation’s manufacturing sector.
As pointed out by The Daily Telegraph, both Hancock and Rudd have in the past worked with chancellor George Osborne, and this move looks very much like the Treasury trying to take control of the Department of Energy and Climate Change, and particularly over renewables subsidies.
And despite their leaning towards some green policies, both Hancock and Rudd have made pro-shale statements. Following the announcement of lower taxes for shale development, Hancock tweeted:
Meanwhile, only last month Rudd told her constituents that she is supportive of shale oil and gas development as long as it is safe and effectively regulated.
The shale lobby’s champion Fallon may be gone, but it looks likely the government’s march to smooth the path for developers through measures such as the streamlining of planning rules will continue unabated.
Credit to The Carbon Brief for much of the background detail on Hancock and Rudd.