Shale report highlights benefits
17 Dec 2015
The Task Force on Shale Gas has published its fourth report, which examines the economic impacts of shale gas on the UK.
The Task Force, which launched in 2014 to provide impartial, evidence-based assessment of the benefits and risks of shale extraction, is funded by businesses involved in the shale industry, though operates independently of its funders.
Its final report, The Economic Impacts of a UK Shale Gas Industry, says supporting the development of the UK shale industry will “improve the nation’s energy security” via the uninterrupted availability of energy sources at “affordable prices”.
We need more secure, home grown energy supplies – and shale gas must play a part in that
Energy secretary Amber Rudd
Currently, the UK produces less than half its gas needs from the North Sea and the Irish Sea, the report claims.
Energy secretary Amber Rudd said: “We need more secure, home grown energy supplies – and shale gas must play a part in that.”
Meanwhile, the report also says a UK shale industry could create thousands of jobs – as seen in the US where the shale industry, particularly in Texas, Arkansas, Louisiana and Pennsylvania – is fully operational.
Though the Task Force’s report states that it does not rely on hypothetical figures, it does cite two reports which suggest the UK shale industry could create anywhere between 64,000 and 74,000 jobs, and attract investment of £33 billion over 15 years.
The report also calls on the government to spend money to develop skills – such as those made possible via the launch of the UK’s first shale-specific College, which was announced last year.
Elsewhere, a UK shale industry also has the potential to impact on other industries, the report finds.
The report highlights how the growth of the US shale industry had a major impact on the country’s chemicals industry, finding a major increase in the shale-gas derived chemical products market from $60 billion in 2014 to $123 billion by 2030.
The report says the steel industry could also benefit, given that steel is used to manufacture the well casings used in shale oil and gas production and explorations wells.
“Each gas well requires 6 or 7 km of steel casing pipe to be placed underground,” the report says.
“A fully developed industry would require many thousands of km of steel pipe over a period of more than 10 years.”
However, a major question mark over UK shale explorations, and one which the report tackles, looks at how communities might be affected.
UK property holders do not own subsurface resources as they do in the US. Therefore, community payments have been recognised as an alternative to ensure that landowners and the local community can benefit financially from any shale gas industry, the report says.
Commitments outlined by UK Onshore Oil & Gas (UKOOG) in 2013 suggested shale operators pay £100,000 to local communities at the exploration or appraisal stage of a well site where fracking takes place.
UKOOG also recommended operators provide 1% of revenues made to local communities in the vicinity of wells.
The recommendations are supported by the government.
