Trustnet: Hudson: Why shale gas isn’t all it’s fracked up to be

The impact that the “shale gas revolution” will have on the UK and Europe has been massively exaggerated, according to Frances Hudson, global thematic strategist at Standard Life, who works on the GARS team.

The UK Government has recently announced tax breaks for companies engaged in drilling for the fuel, leading to predictions of the sort of bonanza not seen since the discovery of North Sea oil in the 1970s. 

There have even been suggestions that a European shift to shale gas could have dramatic consequences for Russia, ending dependence on the world's largest country and threatening the legitimacy of the Russian state at home. 

One of the mooted consequences of the successful extraction of shale gas is the side-lining of Russia as a source of energy by Europe. 

Russian gas is critical to the European energy supply and the state has shown itself willing to use it as a foreign-policy tool, for example closing a major pipeline in Ukraine over alleged non-payment of bills.  MORE