Shale gas could help keep the lights on
24 May 2013
A new report highlights the importance of shale gas development as concerns grow over UK gas supplies.
Shale gas development could create tens of thousands of jobs, reduce imports, generate significant tax revenue and support British manufacturing.
This is according to the latest report, Getting shale gas working, by the Institute of Directors (IoD).
The scenarios presented in the report suggest that shale gas investment could peak at £3.7 billion a year, supporting 74,000 jobs.
The bottom line is that in the UK we are in a place where the gas supply is dangerously low
Corin Taylor, an IoD adviser, said: “Shale gas could be a new North Sea for Britain, creating tens of thousands of jobs, supporting our manufacturers and reducing gas imports.
“Further exploration will be needed to assess the size of technically and commercially recoverable resources. At the same time, partnerships need to be established between industry, government and communities to ensure that development of this vital national resource benefits local people.”
The findings come as Rob Hastings, energy and infrastructure director at the Crown Estate, today said the gas crisis in the UK may be closer than orginally thought.
In an interview with the Financial Times, he said that at one point in March, the UK only had six hour’s worth of gas left in storage
“The bottom line is that in the UK we are in a place where the gas supply is dangerously low,” he said.
The March supply issue was caused by difficulties at a processing plant in Norway that supplies gas to Britain through the Langeled pipeline.
Added to this were disrupted supplies with Belgium and the fact that gas storage levels were already low after a cold winter.
Some, such as the IoD, believe shale gas could reduce the country’s reliance on imported fuel. It is expected that 76% of the UK’s gas is likely to be imported by 2030, costing £15.6 billion.
The IoD report claims that shale gas production could reduce gas imports to 37% in 2030, and the cost of imports could fall to £7.5 billion.
Read our in-depth report about the viability of shale gas development in the UK.
