In a landmark decision for the the energy industry announced today, the UK government has overruled Lancashire Council’s decision to reject fracking at two sites in Lancashire - fracking has been approved at the Preston New Road site, while a decision on a second site at Roseacre has been delayed.

Communities Secretary Sajid Javid said the Secretary of State's ruling will give Cuadrilla more time to prove their case at the Roseacre site, and says that he is “minded to allow planning permission for fracking there in the future.”

Cuadrilla—subject to conditions—now has the necessary permits and planning approvals to move ahead with its drilling programme at Preston New Road.

Michael Bradshaw, a Professor of Global Energy at Warwick Business School and an expert on issues around the fracking industry commented:

"What happens next? Notwithstanding the possibility of a judicial review, Cuadrilla—subject to conditions—now has the necessary permits and planning approvals to move ahead with its drilling programme at Preston New Road; thus one could say it has a regulatory license to operate. The industry more generally has a political license from the National Government in London, but Cuadrilla does not have such support from local government in Lancashire.

“Equally, what it does not have is a social license to operate that can be conceived of as ongoing acceptance or approval from the local community and other stakeholders. That said, the harsh reality is that the social license has no standing in the regulatory regime that governs shale gas development in the UK.

"The immediate and obvious reaction of the local communities is to claim that the decision made by a minister in London is anti-democratic. After all, the initial decisions were made by elected councillors and there is proof that the majority in the local community do not support development.”

“The scale of the local opposition reflects a failure by Cuadrilla to engage effectively with the local community and make their case.  It is also a failure by the national Government in London to explain why shale gas development is in the national interest.

"Within England itself the debate over shale gas development has been couched in terms of the North-South divide; whereby it is not considered appropriate to drill for oil in the South, but it is to drill for shale gas in the North.”

“There is also a growing urban-rural divide in relation to shale gas, but also onshore wind and large-scale solar. These are all things that take place disproportionately in rural areas, who face the brunt of the negative environmental, social and economic impacts. Anti-shale gas organisations in these regions argue that shale gas development is not in keeping with the rural landscape and is tantamount to the industrialisation of the countryside.”

"It is because of these issues, and many others, that the question of shale gas is not about the local impacts of drilling activity. It’s about climate change, it’s about energy policy and it’s about sustainable development."

This is the first time that UK shale rock will be fracked horizontally, a method which is expected to produce more gas.

Mixed reaction from environmental organisations and business

The decision has provoked a mixed response in a number of quarters.

Phil Foster, Managing Director of North West-based business energy price comparison site Love Energy Savings, described the go ahead as a double-edged sword for the energy industry:

“There are numerous positives of using shale gas, and when we examine these collectively then fracking appears to be a silver bullet for all of our energy problems. The extraction process creates far less air pollution than burning fossil fuels for electricity, which is crucial if we are to achieve our ambitious target of slashing our 1990 carbon levels by 80% in the next few years. Fracking has also been shown to have the potential to significantly lower gas prices.”

“The economic benefits are clear, which means it’s easy to see why the government is backing this new form of energy, but the possible consequences cannot be ignored.”

Warning that potential side effects of fracking “simply cannot be glossed over” in favour of economic benefits, Phil Foster continued:

“The government cannot afford to place all its eggs in one basket, which is what is most concerning about the increased investment in fracking whilst more sustainable forms of energy generation have seen their subsidies cut. While on the surface fracking appears to have its benefits, by fast-tracking these projects that so many people are against, the government runs the risk of alienating a large proportion of the public when we should all be pulling in the same direction.”

Describing the announcement as a “fudged decision”, Greenpeace campaigner, Hannah Martin said:

“This fudged decision shows the government is struggling to force fracking on a reluctant nation. Fracking will put our countryside and air quality at risk. Digging up more fossil fuels that we can’t burn if we are to honour the international agreement we signed in Paris and is coming into force next month makes little economic or environmental sense.”

“Theresa May cannot build a 21st-century industrial strategy on a polluting and inexperienced fracking sector that won’t deliver for years, if ever. If the PM wants to promote an affordable and fair energy system whilst bolstering business growth and job creation, renewable and smart energy technologies are the way to go.”

In contrast, the GMB union has hailed the Government’s shale gas approval in Lancashire as 'pragmatic'.

Stuart Fegan GMB National Officer for the gas industry said:

 “This pragmatic decision is an important step forward for energy security in the UK and will help close the UK balance of payments deficit which amounts to £90 billion per year.”

“The go ahead will reduce the gas we will need to import from regimes fronted by henchmen, hangmen and head choppers as the UK will need to use gas for years to come to heat our homes and generate electricity on the 60 days each year when there is no wind.”

Now the decision has been made, GMB said it would organise the gas workers in the industry and will work with the regulatory authorities to ensure health and safety and environmental issues are dealt with properly.  

EEF, the manufacturers' organisation commented:

"Shale gas has the potential to deliver significant economic benefits to the UK. It is right that we explore this opportunity and understand the potential for shale gas as part of the UK's energy mix."