All hail UK shale?

In a recent report from the committee for climate change we are advised, there may be a useful role for UK shale gas – but this is not a game changer. Any role should be part of a balanced approach to investment in a portfolio of low-carbon technologies. This is needed to manage the risks that we face and to build a resilient energy system.

But the report does not look at potential impacts of these (and wider European) reserves on gas prices. Although inherently uncertain, consensus projections suggest that even under optimistic assumptions about exploitation of shale gas reserves, UK and European gas prices are likely to go up rather than down.