Liz Truss

By Gareth Dale - Truthout, September 21, 2022

Britain will soon see the first license to drill for shale gas issued since 2019, when the practice was banned following a Magnitude 2.9 tremor at a fracking test well near Blackpool in Lancashire.

Overturning Britain’s ban on fracking was one of the first initiatives announced this month by the incoming government under Tory leader Liz Truss. It belongs to a package of demand-and-supply interventions aimed at addressing the high price of gas.

The message from Downing Street is clear: This government will not seek to lessen the hold of fossil fuel corporations over citizens’ lives by transitioning from hydrocarbons through efficiency measures (such as building insulation), rapidly ramping up renewables, and a further windfall tax on the oil and gas industry. Instead, it will arrange payment of the full-market price for gas to the energy firms while subsidizing consumer and business bills, particularly for rich, energy-profligate households. The cost, estimated at £150 billion, will be loaded onto future taxpayers and energy consumers. It is the largest single act of U.K. state intervention outside wartime.

Given Truss’s market-fundamentalist instincts, this cannot have been easy. But she has coupled it with a laissez-faire thrust on the supply side: to tear up red tape and issue licenses to drill. The market, she believes, will resolve its problems as new supply brings prices back down.

The focus is North Sea oil, but fracking is part of the program. Fracking also offers the incoming government an opportunity to throw red meat to Tory Party members and the right-wing Daily Mail tabloid. To reactionaries, Truss’s move signals that her government intends to bash the tree-huggers, goad them into setting up camps at fracking sites where the security forces will persecute and ultimately defeat them, much as Lady Thatcher did to the feminists who peace-camped at Greenham Common.

The government’s rationale for fracking, then, has an economic and a political edge. Will either succeed?

On the economic side, the prospects are sufficiently enticing to have sent the shares of some fracking companies soaring, notably Union Jack Oil. (Its very name sets Tory hearts aflutter.) Some pundits are predicting a great British gas rush. Shale extraction, claims the Daily Mail, may begin slowly, but by 2037 could “eclipse” fossil gas output from North Sea wells. At the wilder end are predictions that Britain will enjoy a U.S.-style shale revolution, contributing to lower global prices and securing mega profits for the fossil fuel sector.

By Paul LeBlanc, Tabitha Spence, Mette Haugen, and Chris Baugh - Global Climate Jobs, September 18, 2022