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Oil & Gas

UK govt wins fracking vote but 'no company will risk investing' in UK shale, says supporter

Labour had proposed a vote to ban fracking for shale gas after Liz Truss lifted a moratorium on the practice after she became PM

The government won last night’s vote on fracking but the chaos in parliament and the large opposition to the vote suggested this corner of the sector could be out in the cold.

Amid reports of MPs being “manhandled” during a contentious vote on fracking, there were 315 'no' votes on whether to ban fracking for shale gas, versus 228 'ayes’ in favour of Labour’s proposal.

Prior to the vote, business secretary Jacob Rees-Mogg proposed a conciliatory amendment requiring a public consultation on how communities would be able to approve or reject fracking projects in their area through local referendums managed by local authorities, as Downing Street had previously indicated local councils may be bypassed to allow fracking companies to poll residents directly and offer financial compensation.

After defeating the opposition proposal, a Number 10 spokesperson insisted the fracking motion had been a confidence vote in the government, though that position had been undermined by contrary statements from several senior Tories.

Pro-hydrocarbon lobbyists Net Zero Watch said while the majority of MPs voted against Labour’s motion, “it is now clear that no company will risk investing in the development of UK shale gas projects given that the next government is almost certain to pull the plug”.

Benny Peiser, director of Net Zero Watch, said: “The evident failure to embrace fracking is destroying the most promising chances of enhancing Britain’s energy security while driving up energy costs.

“MPs have been playing into the hands of Vladimir Putin as Britain will now be forced to rely more and more on costly gas imports rather than its massive shale resources.”

From the other end of the energy lobbying spectrum, Jamie Peters, campaigner at Friends of the Earth, said: “The fact that Conservative MPs publicly stated that they would vote with Labour is truly extraordinary. There is clearly significant and mounting opposition to fracking across the political spectrum.”

He said Rees-Mogg’s amendment “shows the government is now finally recognising the strength of feeling against fracking and the evident dissatisfaction within its own ranks” and “just how deeply unpopular it is across Westminster, not to mention with the public”.

Peters called for the government to support solutions that not only increase energy security and lower bills but also cut greenhouse gas emissions, suggesting backing for insulating homes and ramping up production of “cheap, popular and clean” renewable energy.

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