The Commentator
"When Lib Dem and green zealot Chris Huhne bowed out as UK energy minister, many of us familiar with the physics and arithmetic of energy production and power generation breathed a sigh of relief. But all the signs suggests that Lib Dem green activist Ed Davey is shaping up to be an even greater menace to UK energy security and for the economy.
After months of government foot-dragging, Davey finally gave the go ahead for the resumption of shale gas drilling on December 13th. And, according to the latest reports, the shale gas deposit around Blackpool in the north-west could be a full 50 percent larger than previous estimates.
..... Energy is no small issue for UK householders already smarting under the cost of soaring bills. Which bring us full circle to Ed Davey’s reluctant decision to give the go ahead for UK shale gas development. Driven by a social agenda and not security or price considerations, Ed Davey could yet derail the economics of cheaper UK gas through the imposition of a network of debilitating and costly ‘green’ regulations on the shale gas industry.
Most damaging of all, the government intends to impose a new tax in 2013 on every ton of CO2 emitted from fossil fuels. The new green tax will hit the fledgling shale gas industry with an initial levy of £16 per ton rising incrementally to £70 per ton by 2030. And, just for good measure, the EU is also lining up its own raft of regulations next year.
Could it be Davey’s intention to artificially hike the price at which UK shale gas hits the market to make green-sourced energy appear a commercially viable alternative?
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