12:59 David Morris (Morecambe and Lunesdale) (Con)

In 2010, the Department for Energy and Climate Change predicted that gas prices would rise by 21% by 2030. Suddenly, by taking into account more and more shale gas, they revised that estimate down to 11%, so shale gas may well halve the rise in gas bills over the next 20 years—a welcome thought to those struggling to pay energy bills.

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13:08 The Minister of State, Department of Energy and Climate Change (Gregory Barker)

The role of unconventional gas and hydraulic fracturing, or fracking, is indeed topical. I have just come back from the United States, and no one there who takes the slightest interest in the energy or climate change agenda can fail to be moved by the huge impact that it is having on the economics and politics of energy—the huge potential benefits to the US economy, the challenges presented to other parts of the energy sector, and the questions raised about the long-term climate change implications of the new fossil fuel.

Our position on UK unconventional hydrocarbon resources is a balanced one, and matches that which we take towards conventional oil and gas exploration and development. We support the tapping of these resources where it is technically and economically viable. As imperative as it is that we meet our climate change targets, it is also a matter of common sense that we continue as an economy and nation to be dependent on fossil fuels for many years to come. Wherever there is an opportunity to harvest or extract those fossil fuels in the UK or in our territorial waters, of course we should do so, provided that it can be carried out with full regard to the protection of the environment.

In the long term, there will be a fundamental shift in the role of gas in electricity supply. By 2050, a major role for gas as a base load source of electricity will only be realistic with large numbers of gas CCS plants. One of our key policy objectives is to enable cost-competitive deployment of CCS by the early 2020s. Last week, we announced the names of the companies who have indicated their interest in the new UK CCS competition, which is a flagship policy for this Government. I am very encouraged by the high level of interest that those companies have demonstrated. It shows that we are on track with CCS, a key technology that is enabling us to make use of fossil fuels while protecting, enhancing and driving forward our climate change objectives.

Secondly, how do we prevent fugitive emissions? That is a very important issue; indeed, I was also asked about the control of fugitive emissions. Most aspects of shale gas operations—for example, the construction of the well, the well-head equipment and any pipeline—use exactly the same technology as conventional gas production. Provided that that technology is competently constructed, there is no reason to think that unintended emissions from shale gas will be different from conventional gas emissions or will pose new problems. At present, methane emissions from gas production are estimated to comprise less than 1% of our total greenhouse gas emissions, so fugitive emissions from current gas production activities are not a major contributor to greenhouse gas emissions.

The Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Wealden (Charles Hendry), or I will be delighted to meet my hon. Friend the Member for Morecambe and Lunesdale to address any further concerns he has that have not been addressed in this debate.

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