Fracking is unlikely to reduce gas prices to the extent its proponents desire

The United Kingdom’s Prime Minister, David Cameron has expressed his desire to build a shale gas industry in Britain as a way of lowering cost, seeking to replicate the case of the U.S. where the extraction of shale gas has caused prices to plummet. However, as Anthony McDonnell argues, the UK and U.S. differ in many respects when it comes to shale gas. Importantly, the UK is integrated in the European energy market which would hoover up production in excess of domestic needs, keeping prices high as opposed to in America where an export ban means prices have plummeted due to a glut of supply.