{"id":94,"date":"2022-09-26T08:23:41","date_gmt":"2022-09-26T08:23:41","guid":{"rendered":"http:\/\/frackfreeryedale-org.stackstaging.com\/?page_id=94"},"modified":"2022-10-09T19:10:12","modified_gmt":"2022-10-09T19:10:12","slug":"myth-1-fracking-will-lower-uk-energy-prices","status":"publish","type":"page","link":"https:\/\/frackfreeryedale.org\/index.php\/myth-1-fracking-will-lower-uk-energy-prices\/","title":{"rendered":"MYTH #1:\u00a0\u00a0\u00a0\u00a0 \u201cFracking will lower UK energy prices\u201d"},"content":{"rendered":"\n
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The appealing \u201ccommon sense\u201d argument that if you increase the supply of a commodity \u2013 in this case natural gas, by fracking – then the price is bound to fall. It\u2019s obvious, isn\u2019t it?<\/em><\/p>\n\n\n\n

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FACT: Domestic gas prices are set by vast international markets, so any gas produced would have to be a significant percentage of global supply to affect pricing<\/strong>. Therefore, industry body UKOOG\u2019s (no doubt optimistic) claim that in 5 years\u2019 time fracking could provide 0.1%<\/strong> of current global production[i]<\/a>, is simply too small to make any difference. And we have proof of that: UK North Sea gas production increased by 26% in the first half of 2022[ii]<\/a> – an amount equivalent to just under 0.2%<\/strong> of global supply and that hasn\u2019t affected the global price at all. So why would a smaller amount have any impact on the global gas market?<\/p>\n\n\n\n

The Government cannot prevent domestically produced gas from being sold abroad or control the price: if companies can earn more money by selling gas abroad at market rates, then they will.<\/em><\/p>\n\n\n\n

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[i]<\/a> Updated shale gas scenarios March 2019 website.pdf (https:\/\/www.ukoog.org.uk\/images\/ukoog\/pdfs\/Updated%20shale%20gas%20scenarios%20March%202019%20website.pdf)<\/a>, Chart 23 \u20135 years after start point = 150bn cubic feet = 4.25bn cubic metres. BP\u2019s 2021 Statistical Review of World Energy 2021 (https:\/\/www.bp.com\/content\/dam\/bp\/business-sites\/en\/global\/corporate\/pdfs\/energy-economics\/statistical-review\/bp-stats-review-2021-natural-gas.pdf<\/a>)  – annual gas production = 3,853.7bn cubic metres<\/p>\n\n\n\n

[ii]<\/a> Energy supply crisis: UK gas producers boost domestic production by 26% in just six months (https:\/\/oeuk.org.uk\/energy-supply-crisis-uk-gas-producers-boost-domestic-production-by-26-in-just-six-months\/)<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The appealing \u201ccommon sense\u201d argument that if you increase the supply of a commodity \u2013 in this case natural gas, by fracking – then the price is bound to fall. It\u2019s obvious, isn\u2019t it? FACT: Domestic gas prices are set by vast international markets, so any gas produced would have to be a significant percentage… Continue reading MYTH #1:\u00a0\u00a0\u00a0\u00a0 \u201cFracking will lower UK energy prices\u201d<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-94","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/pages\/94","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/comments?post=94"}],"version-history":[{"count":13,"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/pages\/94\/revisions"}],"predecessor-version":[{"id":252,"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/pages\/94\/revisions\/252"}],"wp:attachment":[{"href":"https:\/\/frackfreeryedale.org\/index.php\/wp-json\/wp\/v2\/media?parent=94"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}