Frack Attack

I’ve mentioned before that fracking will have an effect on Scotland’s oil and gas industry. If England develops its shale gas resources, it will result in a major drop in the price for Scotland’s gas, a major blow to the post-independence economy.

Well, there have been some major developments, starting with Total backing England’s shale. Now we have major plans in the work and David Cameron coming out in favour of fracking.

When the wallets come out, that’s when you know it’s serious. Certainly, Cameron’s plan to let councils keep revenues emulates the American political landscape, where by revenues go to the landowners instead of the state, which contributed to America’s shale boom. Of course, throwing money at this won’t solve every problem. The north of England is a lot more densely populated than large chunks of the US, and political pressure could still trump financial power. But as it is, this doesn’t bode well for Scotland’s gas industry.

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