Shale Could Provide New 'North Sea', Says Executive Group

Embracing shale gas mining in the United Kingdom could create thousands of jobs equivalent to "a new North Sea", a business executive group says in a new report.

The comments come in Getting Shale Gas Working, from the prestigious Institute of Directors.

Corin Taylor, author of the report, says: “Shale gas could be a new North Sea for Britain, creating tens of thousands of jobs, supporting our manufacturers and reducing gas imports."

The North Sea and its rich hydrocarbon deposits has been an economic bonanza for the UK since commercial production on a major scale started in the 1970s.

The lobby group's report also concludes that shale gas development could  reduce British reliance on imported gas, generate significant tax revenue, and support British manufacturing.

Exploiting shale resources could lead to investment of up to £3.7 billion (€4.3 bn) a year, supporting 74,000 jobs, the report estimates. There would be work for geologists and drilling specialists, construction workers, lorry drivers, cement manufacturers, and water treatment experts. Regional retail and service industries would also receive a great boost. Jobs could be created in parts of the country that need them most, as UK shale deposits have mostly been found in the north of England, where the economy has been suffering more than the south for decades.

Shale gas production, with tax rates of up to 62%, could generate significant tax revenue, the report claims.

 "Further exploration will be needed to assess the size of technically and commercially recoverable resources," Taylor said. "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.”

See also: UK Shale Companies Target 40 Wells to 2015, Lancashire as the Centre of Expertise